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

A Hindu alternative to Valentine's Day? 'Shiv-Parvati was first love marriage in Universe'

By Rajiv Shah*   The other day, I was searching on Google a quote on Maha Shivratri which I wanted to send to someone, a confirmed Shiv Bhakt, quite close to me -- with an underlying message to act positively instead of being negative. On top of the search, I chanced upon an article in, imagine!, a Nashik Corporation site which offered me something very unusual. 

'Anti-poor stand': Even British wouldn't reduce Railways' sleeper and general coaches

By Anandi Pandey, Sandeep Pandey*  Probably even the British, who introduced railways in India, would not have done what the Bhartiya Janata Party government is doing. The number of Sleeper and General class coaches in various trains are surreptitiously and ominously disappearing accompanied by a simultaneous increase in Air Conditioned coaches. In the characteristic style of BJP government there was no discussion or debate on this move by the Indian Railways either in the Parliament or outside of it. 

Why convert growing badminton popularity into an 'inclusive sports opportunity'

By Sudhansu R Das  Over the years badminton has become the second most popular game in the world after soccer.  Today, nearly 220 million people across the world play badminton.  The game has become very popular in urban India after India won medals in various international badminton tournaments.  One will come across a badminton court in every one kilometer radius of Hyderabad.  

Faith leaders agree: All religious places should display ‘anti-child marriage’ messages

By Jitendra Parmar*  As many as 17 faith leaders, together for an interfaith dialogue on child marriage in New Delhi, unanimously have agreed that no faith allows or endorses child marriage. The faith leaders advocated that all religious places should display information on child marriage.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

Ayurveda, Sidda, and knowledge: Three-day workshop begins in Pala town

By Rosamma Thomas*  Pala town in Kottayam district of Kerala is about 25 km from the district headquarters. St Thomas College in Pala is currently hosting a three-day workshop on knowledge systems, and gathered together are philosophers, sociologists, medical practitioners in homeopathy and Ayurveda, one of them from Nepal, and a few guests from Europe. The discussions on the first day focused on knowledge systems, power structures, and epistemic diversity. French researcher Jacquiline Descarpentries, who represents a unique cooperative of researchers, some of whom have no formal institutional affiliation, laid the ground, addressing the audience over the Internet.

Article 21 'overturned' by new criminal laws: Lawyers, activists remember Stan Swamy

By Gova Rathod*  The People’s Union for Civil Liberties (PUCL), Gujarat, organised an event in Ahmedabad entitled “Remembering Fr. Stan Swamy in Today’s Challenging Reality” in the memory of Fr. Stan Swamy on his third death anniversary.  The event included a discussion of the new criminal laws enforced since July 1, 2024.

Hindutva economics? 12% decline in manufacturing enterprises, 22.5% fall in employment

By Bhabani Shankar Nayak*  The messiah of Hindutva politics, Narendra Modi, assumed office as the Prime Minister of India on May 26, 2014. He pledged to transform the Indian economy and deliver a developed nation with prosperous citizens. However, despite Modi's continued tenure as the Prime Minister, his ambitious electoral promises seem increasingly elusive. 

Union budget 'outrageously scraps' scheme meant for rehabilitating manual scavengers

By Bezwada Wilson*  The Union Budget for the year 2024-2025, placed by the Finance Minister in Parliament has completely deceived the Safai Karmachari community. There is no mention of persons engaged in manual scavenging in the entire Budget. Even the scheme meant for the rehabilitation of manual scavengers (SRMS) has been outrageously scrapped.