A comprehensive analysis of employment trends over the past decade and the widening wage gap was presented by Bahutva Karnataka at the Press Club in Bengaluru on March 11. The report, titled ‘Employment, Wages, and Inequality,’ scrutinized various indicators, including job creation, formalization, and wage improvements since the National Democratic Alliance (NDA) assumed power.
It also evaluated the efficacy of NDA’s employment initiatives as the elections loom.
Challenges in Employment and Wage Growth
Despite claims of substantial job creation by the Govt in April 2019, data revealed stagnation in the formal employment sector and a notable rise in self-employment. While wage earnings showed a marginal increase post-adjustment for inflation, a significant portion of households still earned below the proposed National Floor Level Minimum Wage (NFLMW) of Rs. 375 per day. Furthermore, wage inequality persisted, exacerbating the wealth gap between the affluent and the impoverished.
Widening Income Disparity Amid GDP Growth
Amid a 60% surge in GDP per capita over the last decade, income stagnancy for a substantial segment of the populace underscored a troubling trend. The report highlighted that nearly 35% of households earned below the NFLMW, indicating a significant wealth disparity. Notably, the wealthiest 10% of the population’s share of national wealth increased from 63% in 2012 to 64.5% in 2022, while the share held by the poorest 50% declined from 6.1% to 5.6% during the same period.
