Skip to main content

It's now official: Developed Gujarat's regular, casual workers earn less than 19 top states

Casual labour market in Vadodara, Gujarat
By Rajiv Shah
Though not as low as state chief minister Vijay Rupani claims it to be (0.9%), Gujarat’s unemployment rate, at least as reflected in a recent report released by the Government of India, is 4.8%, lower than the national average, 6%. Yet, ironically, the same report, released soon after the Lok Sabha polls came to an end in May 2019, brings to light an even grimmer reality: Lower wages in "model" and "developed" Gujarat compared to virtually the whole of India, including the so-called Bimaru states.
Published by the Ministry of Statistics and Programme Implementation, and based on a survey carried out across India between July 2017and June 2018, the report, “Annual Report: Periodic Labour Force Survey (PLFS)”, suggests that per month average wages or salary earnings for regular employees in Gujarat during April-June 2018 was Rs 14,528.24, which is lower than all major 21 states with the exception of West Bengal (Rs 11,978.99).
Low wages aren't just characteristic of what are called “regular employees”; things are no different with regard to casual labour. Thus, according to the PLFS report, average earnings of a casual worker in Gujarat during April-June 2018 was found to be just Rs 223.57 per day, lower than all major 21 states with the exception of two states -- Chhattisgarh (Rs 189.05) and Maharashtra (Rs 208.88).
The PLFS report finds that, among 21 major states, regular workers’ average wages/salaries per month during April-June 2018 were the highest in Jammu & Kashmir (Rs 21,197), followed by Jharkhand (Rs 20,460), Kerala (Rs 19,433), Haryana (Rs 18,890), Maharashtra (Rs 18,736), and Telangana (Rs 18624). On the other hand, Kerala’s average casual wages per day were found to be the highest in India (Rs 605), followed by J&K (Rs 374), Himachal Pradesh (Rs 365), Telangana (Rs 306), and Tamil Nadu (Rs 331).
The all-India average for the wages/salary earnings of regular earnings is Rs 16,847.65, and for casual workers Rs 270.78, much higher than  Gujarat. Interestingly, while the PLFS report refuses to give any explanation for the reason behind such low wages for both regular and casual workers, the Modi government’s thinktank Niti Aayog asserted in 2017 that while there have been “low and stable rates of unemployment over more than three decades”, the more serious problem, instead, is “severe underemployment.”
Citing acceptance of jobs with poor wages, a report gave anecdotal evidence to prove this. It said. “A recent advertisement for the post of 14 sanitary workers in Tamil Nadu secretariat attracted 4,000 applications, and these included a large number of engineers and MBA graduates. Goutam Das, in his book ‘Jobonomics’, estimates that India would have as many as 20 crore underemployed people with ‘bad jobs’ or no jobs by 2025.”
Taking a more focused view, the world’s top consultants, McKinsey, has suggested that low official unemployment rate “hides the fact that India has a huge army of underemployment”, pointing out, in India’s context “unemployment is not really an option”, and here “entering the informal sector as a worker is the norm.”
“Some 86% of India’s workforce is employed in the informal sector, and more than 90% is in informal employment”, the McKinsey Global Institute report says, underlining, “Rarely would a poor rural boy who had dropped out of school remain ‘unemployed’ – he would typically be put to ‘work’ on his family’s small piece of land or would lend a hand at the local kirana shop owned by his uncle.”
Not without reason, the data provided by the PLFS report, too, suggest that among the poorer sections very few poorer were “unemployed” compared to those who were educated, whether in Gujarat or in India. Thus, among those identified as “not literate” in the survey, just 1% reported as having been unemployed in Gujarat and 1.2% all-India. As for those educated up to primary level, the survey found 1.7% unemployment rate in Gujarat and 2.7% all-India.
On the other hand, in Gujarat, the unemployment rate among those who are finished higher secondary is 6.3%, those with diploma or certificate course a whopping 22.6%, among graduates 8.7%, and among post-graduates and above 10.8%. One witnesses a similar trend all-India: 10.3 among those who have finished higher secondary, it is 19.8% among those who have diploma or certificate courses, 17.2% among graduates, and 14.6% among post-graduates and above.
While it is a mystery what percentage of people in Gujarat, or for that matter in India, are underemployment, according an expert definition, “Underemployment refers to people who are working in a lower capacity than they are qualified for, including in a lower-paid job or for fewer hours than they would like to work. It’s different from unemployment in that the person is in fact, working, just not as much as they’d like or to the full extent of their abilities, skills, or education.”

Comments

Peter Thompson said…
Brilliant work!
sanu said…
Unemployment will rise further as market is floor with poor quality candidates
Uma said…
It is more important to look after cows than to worry about unemployed youth

TRENDING

Modi’s Israel visit strengthened Pakistan’s hand in US–Iran truce: Ex-Indian diplomat

By Jag Jivan   M. K. Bhadrakumar , a career diplomat with three decades of service in postings across the former Soviet Union, Pakistan, Iran, Afghanistan, South Korea, Sri Lanka, Germany, and Turkey, has warned that the current truce in the US–Iran war is “fragile and ridden with contradictions.” Writing in his blog India Punchline , Bhadrakumar argues that while Pakistan has emerged as a surprising broker of dialogue, the durability of the ceasefire remains uncertain.

Incarceration of Prof Saibaba 'revives' the question: What is crime, who is criminal?

By Kunal Pant* In 2016, a Supreme Court Judge asked the state of Maharashtra, “Do you want to extract a pound of flesh?” The statement was directed against the state for contesting the bail plea of Delhi University Professor GN Saibaba. Saibaba was arrested in 2014, a justification for which was to prevent him from committing what the police called “anti-national activities.”

Why Indo-Pak relations have been on 'knife’s edge' , hostilities may remain for long

By Utkarsh Bajpai*  The past few decades have seen strides being made in all aspects of life – from sticks and stones to weaponry. The extreme case of this phenomenon has been nuclear weapons. The menace caused by nuclear weapons in the past is unforgettable. Images of Hiroshima and Nagasaki from 1945 come to mind, after the United States dropped two atomic bombs on the cities.

Manufacturing, services: India's low-skill, middle-skill labour remains underemployed

By Francis Kuriakose* The Indian economy was in a state of deceleration well before Covid-19 made its impact in early 2020. This can be inferred from the declining trends of four important macroeconomic variables that indicate the health of the economy in the last quarter of 2019.

Food security? Gujarat govt puts more than 5 lakh ration cards in the 'silent' category

By Pankti Jog* A new statistical report uploaded by the Gujarat government on the national food security portal shows that ensuring food security for the marginalized community is still not a priority of the state. The statistical report, uploaded on December 24, highlights many weaknesses in implementing the National Food Security Act (NFSA) in state.

The soundtrack of resistance: How 'Sada Sada Ya Nabi' is fueling the Iran war

​ By Syed Ali Mujtaba*  ​The Persian track “ Sada Sada Ya Nabi ye ” by Hossein Sotoodeh has taken the world by storm. This viral media has cut across linguistic barriers to achieve cult status, reaching over 10 million views. The electrifying music and passionate rendition by the Iranian singer have resonated across the globe, particularly as the high-intensity military conflict involving Iran entered its second month in March 2026.

Lata Mangeshkar, a Dalit from Devdasi family, 'refused to sing a song' about Ambedkar

By Pramod Ranjan*  An artist is known and respected for her art. But she is equally, or even more so known and respected for her social concerns. An artist's social concerns or in other words, her worldview, give a direction and purpose to her art. History remembers only such artists whose social concerns are deep, reasoned and of durable importance. Lata Mangeshkar (28 September 1929 – 6 February 2022) was a celebrated playback singer of the Hindi film industry. She was the uncrowned queen of Indian music for over seven decades. Her popularity was unmatched. Her songs were heard and admired not only in India but also in Pakistan, Bangladesh and many other South Asian countries. In this article, we will focus on her social concerns. Lata lived for 92 long years. Music ran in her blood. Her father also belonged to the world of music. Her two sisters, Asha Bhonsle and Usha Mangeshkar, are well-known singers. Lata might have been born in Indore but the blood of a famous Devdasi family...

'Batteries now cheap enough for solar to meet India's 90% demand': Expert quotes Ember study

By A Representative   Shankar Sharma, Power & Climate Policy Analyst, has urged India’s top policymakers to reconsider the financial and ecological implications of the country’s energy transition strategy in light of recent global developments. In a letter dated April 10, 2026, addressed to the Union Ministers of Finance, Power, New & Renewable Energy, Environment, Forest & Climate Change, and the Vice Chair of NITI Aayog, with a copy to the Prime Minister, Sharma highlighted concerns over India’s ambitious plans for coal gasification and the Prototype Fast Breeder Reactor (PFBR).

Health Day ads spark row as NAPi targets Britannia campaign, criticizes celebrity endorsement

By A Representative   The advocacy group Nutrition Advocacy in Public Interest (NAPi) has raised concerns over what it describes as misleading advertising of ultra-processed food products (UPFs), particularly those high in sugar, fat and salt, calling for stricter regulations and an end to such promotions across media platforms.