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Resource centre on India's rural distress
 
 

Rural wage growth is faltering again -Manas Chakravarty

-Livemint.com

There cannot be a solution to the problem of low wage growth in rural India unless opportunities for getting decent and productive jobs are available outside agriculture

One of the anomalies that stood out from the broad narrative of rural distress was the stubborn fact that rural wages were growing, not just in nominal but also in real, or inflation-adjusted terms. And if real rural wages were seeing higher growth, surely the rural distress story was actually just a farmer distress story, not really applicable to the vast mass of rural workers? The discussion had obvious political overtones, since rural wage workers are the poorest section of society.

Well, the latest data shows that rural wage growth is trending down again. In October 2017, the year-on-year growth in average nominal rural wages for men fell to 4.93%, from 6% in the previous month. In real terms, average rural wage growth for men was down to 1.57% year-on-year in October 2017. For rural women, growth in real wages in October was a negligible 0.01% from a year ago. The latest slowdown is part of a broader trend—growth in rural wages for men as well as women has been falling since the middle of last year.

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