Wages Grow But Majority Of Indians Earn Less Than Rs 10000

Wages in most sectors have grown steadily at around 3 percent per year, but 82 percent of male and 92 percent of female workers still earn less than Rs 10,000 per month, according to ‘State of Working India’ report released by Azim Premji University.

The report finds that while wages in most sectors have grown steadily, caste and gender disparity still remains high. Labour productivity has grown several times faster than wages. As a result employers have benefitted far more from growth than workers. Employment generation has remained weak, and India has struggled to convert high rates of economic growth into good jobs, particularly for its educated youth. 

Jobless growth

India has struggled to convert its high rates of economic growth into good jobs. Currently, a 10 percent increase in GDP results in less than 1 percent increase in employment. The rate of unemployment among the youth and higher educated has reached 16 percent.

The past decade has been good for the performance of the organised manufacturing sector. Several industries have delivered on wage and job growth. However, work has also become more precarious in the organised sector. In place of permanent workers firms have engaged various forms of contract and trainee workers who perform the same work at a fraction of the wages. 

Caste and gender disparities remain high. Women are 16 percent of all service sector workers, but 60 percent of domestic workers. Similarly, Scheduled Castes (SC) formed 18.5 percent of all workers, but 46 percent of total leather workers. On a positive note, the gender earnings gap is reducing over time. 

Anurag Behar, Vice Chancellor, Azim Premji University said, “Just and sustainable livelihood opportunities for all its citizens are critical for India. Azim Premji University’s State of Working India report is based on rigorous research and investigates a range of issues that can drive employment growth in the country, with equity and full inclusion. We see this report only as a first step, with deep, continuing and on-the-ground research required. Collaboration across institutions and sectors will be key for developing a robust and detailed understanding.”

Rajguru Tandon

BW Reporters The author is a correspondent with BW Businessworld with keen interest in HR and employee welfare.