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Government’s role as employer declining

The Centre’s share in employment has declined at the fastest rate in recent years among government-sector employers.

The Centre's share in employment has declined at the fastest rate in recent years among government-sector employers. (IE)

Prime minister Narendra Modi’s directive to the Central government to recruit 1 million people on a mission mode in one and half years will have only a limited impact on addressing the high unemployment in the country, reports Surya Sarathi Ray.

Of the country’s total labour force, barely a fifth is in the organised sector, which includes the government. About a third of organised-sector employment is in the “government sector”, which includes the Centre, states, CPSEs/PSBs, state PSEs, local bodies, autonomous government bodies, universities, etc. In the government sector, states are the largest employers.

The Centre’s share in employment has declined at the fastest rate in recent years among government-sector employers.

Around 12 million enter the labour force every year. Since automation is curbing the pace of job creation, a solution to joblessness lies in higher private investments, rapid economic growth and skill development.

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