Rural Wage Growth Slows Down, Non-Farm Jobs Also Hit: Report
Rural wages grew 3.8 percent year-on-year in December 2018, the lowest ever for this month, according to a report.
The Quint DAILY
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Rural wages grew 3.8 percent year-on-year in December 2018, the lowest ever for this month, reported The Indian Express.
According to the report, annual wholesale inflation in December was minus 0.07 percent for “food” and 4.45 percent for “non-food” articles, hints that the distress isn’t confined to agriculture.
In December 2018, the national daily rural wage rate was Rs 322.62, which was 3.84 percent higher than the same for December 2017 (at Rs 310.69). Factoring in annual rural consumer price index (CPI) inflation (1.5 percent), it would mean that wages rose by only 2.3 percent in “real” terms, the report said.
Between December 2014 to 2018, the average year-on-year rural wage growth was 4.7 percent in nominal terms, which after accounting for inflation, fell to 0.5 percent.
However, during the UPA government’s tenure (between December 2009 to 2013), nominal rural wages rose 17.8 percent. After keeping in mind CPI inflation of 11.1 percent, the real growth of wages was 6.7 percent, which is still higher than the NDA government, The Indian Express reported.
The report added that the December year-on-year wage growth for skilled workers (eg – carpenters, masons, plumbers) has also lagged behind overall rural wage growth in three out of five years of the NDA government. The average growth in wages for construction and general non-agricultural labour (eg – porters, loaders) has been even lower, making it clear is that the distress is not limited to the farms.
(With inputs from The Indian Express.)
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