Chennai: The overall real wage growth at the national level has remained flat between Q2FY20 and Q1FY25. However, 17 out of states saw better real wage growth than the national average.
The growth of overall real wage, which is nominal wages deflated by state-specific Consumer Price Index, at the national level has been flat at 0.01 per cent over 2QFY20-1QFY25.
However, the real wage growth was above 2 per cent for Karnataka, Maharashtra and Telangana. It was between 1-2 per cent for Andhra Pradesh, Tamil Nadu, West Bengal and Jharkhand, and a robust 6.8 per cent for Goa among the small states, finds India Ratings.
On the other hand, Haryana and Uttar Pradesh witnessed a contraction of 1.7 per cent and 1.2 per cent. Among the small states, Arunachal Pradesh, Manipur and Assam were the ones to have recorded a severe contraction of more than 3 per cent in real wages.
In terms of ranking, Goa remains at the top with its average wages being 2.27x of the national average in 2023-24. It is followed by Mizoram, Kerala, Maharashtra and Haryana. Kerala and Maharashtra pipped Arunachal Pradesh and Sikkim to be at the third and fourth positions.
At the national level, 73.2 per cent of workers were engaged in informal jobs in the non-agriculture sector in 2023-24 increasing by 4.8pp from 2018-19. The increase in share of informal jobs within the non-agriculture sector was prevalent in 20 states. Bihar now has the highest share of informal jobs within the non-agriculture sector in the country.
The share of private sector jobs within the non-agricultural sector increased to 11.3 per cent in 2023-24 compared to 2018-19. Goa, Telangana, and Maharashtra led the increase in share of private sector jobs between 2018-19 and 2023-24.
Goa has the largest share of private sector jobs at 25.8 per cent within the non-agriculture sector. Among the major states, Maharashtra with a share of 23.5 per cent in 2023-24 has replaced Gujarat to be the state with the highest share of private sector jobs.
