Gujarat has higher than national average underemployment rates: NSSO

By Rajiv Shah

Gujarat government may be happy that Government of India reports have been saying that Gujarat has fewer unemployed than other states. However, latest reports, including the Academic Foundation’s “India Labour and Employment Report 2014” and the National Sample Survey Organisation’s “Employment and Unemployment Situation in India, 2011-12” report point towards the need to look at the problem of underemployment, which is higher in Gujarat than several Indian states.
The Gujarat government has for long been claiming that its unemployment rate is one of the lowest. Quoting the Labour Bureau data, released by the Government of India, it said recently (click HERE to read) that Gujarat’s unemployment rate in the year 2011-12 “has the least unemployment rate among all states across the country”. Celebrating it as Gujarat government success, it officially declared, “According to the report, while India’s jobless rate stood at 3.8 per cent during the last fiscal, Gujarat showed lowest rate of 1 per cent. The report also noted that Gujarat has an extremely low unemployment rate among females in urban areas.”
The state government observation did not end here. It said, “The Labour Bureau conducted this survey, and the first such survey was conducted in 2009-2010. The Bureau is an apex organization for providing database at the national level for research and policy formation. This report is yet another indication of Gujarat’s vibrant strides in every sphere including providing a steady stream of jobs for its people, especially the youngsters.” This has happened allegedly because of its “staunch” advocacy in “strengthening the people of the state with appropriate skill sets that would enable them to maximize their potential in the job market.”

The latest “India Labour and Employment Report 2014”, prepared by the high-profile Academic Foundation, New Delhi, with the help of Institute for Human Development scholars, has sought to indirectly contradict such an approach, taken by the Gujarat government in showcasing how unemployment rate in Gujarat is low. It says, “As is typical for a poor and developing economy, most workers in India cannot afford to be unemployed, hence the level of open unemployment is quite low at 2.7 per cent.” It adds, “Even the more comprehensive current daily status (CDS) measure of unemployment reaches only 5.6 per cent.”
Seeking to pinpoint the problem, the report states, “In reality, the problem is not primarily one of unemployment but lack of productive employment”, suggesting the need to find out how many workers are underemployed, instead of suggesting an unemployment rate. Taking a cue from the need to take a look at underemployment afresh, for the first time, the National Sample Survey Organization’s report, “Employment and Unemployment Situation in India, 2011-12”, released in January 2014, seeks to suggest how many people in different states were actually suffered from a much higher underemployed than unemployment.
Putting out data on the number of persons who did not work “more or less regularly throughout the year” the report finds that in Gujarat, this predicament befell 11.6 per cent workers in the age group 15 years and above in the rural areas, and 5.8 per cent workers in the same age group in the urban areas. This, the report states, is higher than the national average – which is 10.6 per cent in the rural areas and 5.7 per cent in the urban areas. A comparison with other Indian states suggests that there is lower underemployment than Gujarat’s in rural areas of 12 major Indian states out of 20, and seven states in the urban areas.

Thus, as against 11.6 per cent underemployment in Gujarat’s rural areas, major states with lower underemployment ratio were Andhra Pradesh (8.8 per cent), Assam (8.5 per cent), Bihar (10 per cent), Haryana (9 per cent), Himachal Pradesh (5.6 per cent), Jammu & Kashmir (7 per cent), Karnataka (4.8 per cent), Maharashtra (10.3 per cent), Odisha (9.8 per cent), Punjab (5.8 per cent), Uttarakhand (9.7 per cent), and Uttar Pradesh (8.5 per cent). In the urban areas, too, the states with a higher underemployment rate than Gujarat (5.8 per cent) were Andhra Pradesh (3 per cent), Assam (5.3 per cent), Haryana (2.9 per cent), Himachal Pradesh (4.4 per cent), Jammu & Kashmir (5.5 per cent), Punjab (3.2 per cent), and West Bengal (5.2 per cent).

The fact that underemployment needs to be taken into account in calculations while analyzing joblessness was highlighted in the “State of the Urban Youth-India 2013 Report” released by the UN Habitat and IRIS Knowledge Foundation in Mumbai in October 2013. The UN report said, “The availability of employment and access to services is not commensurate to the number of people demanding them. Young people are advised to pursue education towards white-collar jobs, but a large portion of real job creation is in the informal sector. The youth are neither prepared for it, nor consider it aspirational.” The report recommends skill development as a reasonable alternative.

Comments

MG-NREGA: A global model still waiting to be fully implemented

By Bharat Dogra When the Mahatma Gandhi National Rural Employment Guarantee Act (MG-NREGA) was introduced in India nearly two decades ago, it drew worldwide attention. The reason was evident. At a time when states across much of the world were retreating from responsibility for livelihoods and welfare, the world’s second most populous country—with nearly two-thirds of its people living in rural or semi-rural areas—committed itself to guaranteeing 100 days of employment a year to its rural population.

Concerns raised over move to rename MGNREGA, critics call it politically motivated

By A Representative Concerns have been raised over the Union government’s reported move to rename the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), with critics describing it as a politically motivated step rather than an administrative reform. They argue that the proposed change undermines the legacy of Mahatma Gandhi and seeks to appropriate credit for a programme whose relevance has been repeatedly demonstrated, particularly during times of crisis.

Rollback of right to work? VB–GRAM G Bill 'dilutes' statutory employment guarantee

By A Representative The Right to Food Campaign has strongly condemned the passage of the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB–GRAM G) Bill, 2025, describing it as a major rollback of workers’ rights and a fundamental dilution of the statutory Right to Work guaranteed under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). In a statement, the Campaign termed the repeal of MGNREGA a “dark day for workers’ rights” and accused the government of converting a legally enforceable, demand-based employment guarantee into a centralised, discretionary welfare scheme.

A comrade in culture and controversy: Yao Wenyuan’s revolutionary legacy

By Harsh Thakor* This year marks two important anniversaries in Chinese revolutionary history—the 20th death anniversary of Yao Wenyuan, and the 50th anniversary of his seminal essay "On the Social Basis of the Lin Biao Anti-Party Clique". These milestones invite reflection on the man whose pen ignited the first sparks of the Great Proletarian Cultural Revolution and whose sharp ideological interventions left an indelible imprint on the political and cultural landscape of socialist China.

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.

Making rigid distinctions between Indian and foreign 'historically untenable'

By A Representative Oral historian, filmmaker and cultural conservationist Sohail Hashmi has said that everyday practices related to attire, food and architecture in India reflect long histories of interaction and adaptation rather than rigid or exclusionary ideas of identity. He was speaking at a webinar organised by the Indian History Forum (IHF).

From jobless to ‘job-loss’ growth: Experts critique gig economy and fintech risks

By A Representative Leading economists and social activists gathered in the capital on Friday to launch the third edition of the State of Finance in India Report 2024-25 , issuing a stark warning that the rapid digitalization of the Indian economy is eroding welfare systems and entrenching "digital dystopia."

India’s Halal economy 'faces an uncertain future' under the new food Bill

By Syed Ali Mujtaba* The proposed Food Safety and Standards (Amendment) Bill, 2025 marks a decisive shift in India’s food regulation landscape by seeking to place Halal certification exclusively under government control while criminalising all private Halal certification bodies. Although the Bill claims to promote “transparency” and “standardisation,” its structure and implications raise serious concerns about religious freedom, economic marginalisation, and the systematic dismantling of a long-established, Muslim-led Halal ecosystem in India.

School job scam and the future of university degree holders in West Bengal

By Harasankar Adhikari The school recruitment controversy in West Bengal has emerged as one of the most serious governance challenges in recent years, raising concerns about transparency, institutional accountability, and the broader impact on society. Allegations that school jobs were obtained through irregular means have led to prolonged legal scrutiny, involving both the Calcutta High Court and the Supreme Court of India. In one instance, a panel for high school teacher recruitment was ultimately cancelled after several years of service, following extended judicial proceedings and debate.

Search This Blog