Challenges in Center’s 1 million hiring plan

Last week, the central government said it would fill its current job vacancies in “mission mode”. If that mission happens, one million Indians will get central government jobs in the next 18 months. But to do so would require a radical departure from established patterns of recruitment.

As of 1 March 2020, the latest date for which such data are available, the central government had about 3.18 million employees against the sanctioned strength of about 4 million. Thus, the government is aiming to fill about one-fifth of its sanctioned strength in 18 months.

The track record is not strong. Last year, the government told Parliament that it had inducted 444,813 new employees over a five-year period between 2016-17 and 2020-21. At that rate, it would take about 11 years to add 1 million new employees. In other words, the Center wants to limit the recruitment of 11 years to 18 months.

Between 2003 and 2020, the number of central government employees has decreased. In March 2003, there were 3.57 million employees. As of March 2012, it fell to 3.15 million, before reaching 3.18 million in 2020.

On a net basis (employees leaving service minus new appointments), the pattern is one of large recruits in one year, followed by several years of smaller net departures.

The two big years were 2003 and 2013, both pre-election years, as would be 2023. But even this will not solve the growing employment crisis in India, while the government finances will be increased further.

financial prospects

The addition of 1 million will have financial implications for the government. The workforce in March 2020 was 11% less than the workforce in March 2003. However, during this period, both the government’s wage bill and pension payments have grown at a compound annual rate of 16%. It is doubling approximately every four and a half years. The share of these two items in the total expenditure of the government is estimated to increase from 7.1% in 2003-04 to 12.1% in 2022-23.

A 23 per cent increase in the workforce, that too in one go, will add to the Centre’s wage bill. This will not add to the pension liabilities of the government, as the government shifts from a system of ‘defined benefit’ to ‘defined contribution’ (pension based on employees’ own savings) for new employees (assured pension for life) with effect from January 2004. Has been. However, the government’s pension commitments for existing and former employees who joined, and are alive, service before that cut-off, are quite tough.

lower profile

While 1 million new jobs is significant, it is not enough given the current demand for jobs. According to the government’s periodic labor force survey for 2020-21, around 33 million in the 15-59 age group wanted to work but did not have work. Furthermore, only 3.4% of the regular wage or wage workers in India are with the central government.

According to the Seventh Central Pay Commission report released in 2015, the sanctioned strength of the government in 1957 was 1.73 million. In 1994 it reached 4.17 million. As of 1 March 2020, it stood at 4 million with 20% vacancies, which the Center wants to fill in the next 18 months. While vacancies exist at all levels, 90% of them are at the level of Group C non-gazetted employees, which are basically the lowest level in the central government, and include functional profiles such as pharmacists, technicians, constables and clerks.

ministry concentration

These vacancies are also spread across the 77 ministries and departments that make up the Government of India. Within them, the strength of the employees is skewed. Only five ministries and departments account for about 92% of the workforce, along with posts sanctioned by the central government: Railways, Home Affairs, Defense (Civil), Posts and Revenue.

Vacancies are huge in some of the 16 ministries and departments with a sanctioned strength of more than 10,000. It is 66% in the Department of Science and Technology, 49% in the Ministry of Mines and 39% in Civil Defense. Extensive studies have not been conducted on the efficiency and exact size of central government employees, but the Fifth Central Pay Commission report in 1997 stated that the data did not indicate that “the bureaucracy as a whole is ‘bloated’ or No. No”. For now, the government is trying to be the biggest one ever.

www.howindialives.com iDatabase and search engine for public data.

subscribe to mint newspaper

, Enter a valid email

, Thank you for subscribing to our newsletter!