This paper explores how young male Dalit labourers negotiate the changes and continuities of labour relations in the construction industry, and power relations in rural Telangana in southern India. It looks at the fluidity between three segments of the classes of labour, namely debt‐bonded, unskilled/self‐employed and educated labourers. It examines how Dalit youths' experiences and representations of labour circulation and political clientelism shape and are shaped by the articulation between the construction industry and rural leaders, and by class, family, caste and generational relations in the village. Two points are made. First, circulation at the bottom of the labour hierarchy prevents labourers (even educated ones) to accumulate capital and participate in collective action: rather, the total lack of protection at work has brought about renewed and graded forms of dependence and political clientelism. Second, circulation serves as a locus that fosters and segments young male Dalit labourers' quests for respect, but hinders them from getting involved in political competition against rural leaders.