On examining the dynamics of the processes of change in the status of labour and employment in the rapidly globalising state of Gujarat in India, this study shows that the rapid growth in the state has not been shared by labour. This has resulted in the state slipping in poverty reduction, human development and in hunger removal. This study also argues that an unfair deal to labour need not be a part of neo-liberal economic reforms and that providing a just share to labour can contribute towards promoting labour-intensive and equitable growth in the state.