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Resource centre on India's rural distress
 
 

Real rural wages plunge 3.8 per cent in September -Harish Damodaran

-The Indian Express

The daily wage rate in rural India for male workers across 25 occupations (12 agricultural and 13 non-agricultural) averaged Rs 331.29 during September, as per field data compiled by the Labour Bureau.

Real rural wages growth has fallen to an all-time-low of minus 3.8% in September, further confirming the deep structural slowdown in ‘Bharat’ that is also evidenced in sluggish fast-moving consumer goods (FMCG) and two-wheeler sales.

The daily wage rate in rural India for male workers across 25 occupations (12 agricultural and 13 non-agricultural) averaged Rs 331.29 during September, as per field data compiled by the Labour Bureau. This was 3.42% higher than the corresponding level for the same month of 2018. But in “real” terms, after adjusting for inflation based on the all-India consumer price index (CPI) for rural labourers, the wage increase worked out to minus 3.77% year-on-year.

The accompanying chart maps month-wise annual growth in rural wages since 2017. The divergence between “nominal” and “real” growth can be seen particularly after January 2019. That, in turn, has mainly to do with inflation: Between December 2018 and September 2019, nominal year-on-year growth in rural wages has been more or less flat, registering only a marginal decline from 3.76% to 3.42%. However, CPI inflation for rural labourers during the same period has gone up from 1.66% to 7.20%.

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