Rural regular wages declined by 0.3% per annum, while urban regular wages declined by 1.7%.
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A deep crisis in economy:
- Between 2011-12 and 2017-18, earnings of regular workers declined in both rural and urban areas.
- Rural regular wages declined by 3% per annum, while urban regular wages declined by 1.7%.
- This is the second time in the last five decades that regular wages have declined in real terms.
- The first period of decline was between 1999-2000 and 2004-05. The decline then was marginal.
- Wages do not show a sharp decline in rural areas as compare to urban areas.
- The decline is sharper in case of regular workers with graduate or higher educational qualifications, who generally represent the middle class.
- All through the last five decades, wages of this section recorded faster growth, but this time they declined by 3% per annum resulted in lower demands for goods and services consumed by the middle class.
- With most categories of workers reporting either stagnant or declining incomes, the credibility of the national accounts estimates is under question.
- The crisis of demand is no longer restricted to rural areas, and is far more widespread than indicated by various data sources.