Staff on payrolls of govt firms lowest in five years, CEA Subramanian suggests all is well on job front

The total number of employees was 14.66 lakh at the end of March, 2018 as compared to 16.91 at the end of March, 2014 as CPSEs froze hiring, resorted to downsizing staff strength.
unemployment

Parmita Uniyal

New Delhi: There are three types of lies — lies, damn lies, and statistics, said Benjamin Disraeli. While one is not sure about which category the job data presented on Friday by Chief Economic Adviser (CEA) K Subramanian fall in or is instead really a fact, government data on payroll of PSUs tell an entirely different story.

As per Labour Ministry, the total number of regular employees working with various central public sector enterprises (CPSEs) were at five-year low at the end of March, 2018.

As against the total regular employees of 13.51 lakh at the end of March 31, 2014 the headcount fell to 10.88 lakh at the end of March, 2018. The data shows there has been gradual decline in employee number over the last five years.

The number of contractual employees in the last five years rose to 3.38 lakh by March, 2018 from 3.09 lakh in March, 2015 suggesting the CPSEs resorted to outsourcing of their work to third parties and contractors.

Even as the number of contractual employees rose, the total number of employees on the rolls of various CPSEs declined significantly. The total number of employees including daily and casual workers was 14.66 lakh at the end of March, 2018 as compared to 16.91 at the end of March, 2014.

The details of total employees, including contractual employees in the CPSEs are based on the Public Enterprises Survey for financial years 2013-14 to 2017-18. The information was given by Labour Minister Santosh Kumar Gangwar in response to a question from DMK leader and Rajya Sabha member Tiruchi Siva.

A senior official of a large PSU said that many loss-making PSUs are barred from making fresh recruitment leading to a decline in their workforce. Besides, employees are hired on contractual basis to keep the cost and liability towards social security at minimum.

“Each financial year, the government presents deficit budget but give annual increments to its employees. But it does not allow PSUs to hire permanent staff in case they are making losses,” said the miffed executive.

With Modi government being on privatization overdrive and lining up 28 PSUs for disinvestment, job scenario is set to worsen.

Meanwhile, in a presentation on measures taken by the government to boost the sagging economy, Chief Economic Adviser (CEA) K Subramanian said that there was drop in casual labour between 2011-12 and 2017-18 driven by rural workers. Further, while there was shift from casual workers to salaried jobs and self-employed in rural areas the urban areas had witnessed shift from self-employment to salaried jobs during these years.

Painting rosy picture on job front he said that among self-employed, there was shift from unpaid family work to own account work.

Job prospects worrying as slowdown deepens, India Inc revenue declines