Government, private or self-employment: What do Indians want?

By: Lakshita Bhagat

The CVoter and Centre for Policy Research (CPR) recently released their report on how Indians view India and the World’. On the state of employment, the report indicates that preference for government jobs appears to be on a decline.

The phrase ‘job crisis’ or ‘employment crisis’ has dominated national discussions for quite some time. Indeed, unemployment is a burning issue in India. Unemployment is a burning issue in India and the Centre has been on the backfoot over severe criticism on growing joblessness among country’s workforce.

One such incident that made this challenge manifest blatantly is when more than 37 lakh candidates in various part of Uttar Pradesh thronged the railway and bus stations to sit for the UPSSSB-PET examination even amidst flood situation in the state. Images depicted chaotic and jam-packed trains and bus stations, with barely any place to even stand. Of the 37 lakh candidates who registered for the Uttar Pradesh Subordinate Services Selection Board- Preliminary Eligibility Test for group C posts, 33% of candidates missed their exam mainly due to travel issues. Finding suitable employment opportunities is a real challenge for people. While the unemployment rate for Uttar Pradesh is 4%, half of the national average, as per the latest CMIE release, one should not get overly optimistic because anyone who has been employed even for a few hours per week is counted as ‘employed’. Therefore, all those working in temporary, seasonal, and precarious conditions are counted as ‘employed’, as well.

On the face of it, government jobs appear more attractive due to job security that comes with many benefits generally not available to private sector employees. However, in which sector do people prefer to work? The CVoter and Centre for Policy Research (CPR) recently released their report on how Indians view India and the World’. On the state of employment, the report indicates that preference for government jobs appears to be on a decline. Responding to the question of whether they would prefer a government job, a private job, or their own business, more than one-third of respondents favoured government jobs and just 8% preferred a private job. It is the option of engaging in self-employment/business that emerged as a clear favourite with 47% of respondents picking it as the desirable option.

Preference for government job vis-à-vis own business/profession by education and income

Source: CVoter-  CPR Survey (2022, p. 19)

The report analysis highlights that educated people are more likely to prefer to work for the government whereas lower-educated respondents appear more inclined to set up their own businesses/have self-employment. This variance in job preference can be explained by the fact that government jobs are highly competitive and require rigour preparation that educated people are more inclined to try for, as seen in the case of the UP-PET exam where more than 37 lakhs candidates applied for. On the other hand, less educated people might prefer to be self-employed. In terms of income, people with higher incomes prefer to run their own business as setting up and running a business requires capital investment. Self-employment also offers the opportunity for flexibility in working hours.  

Changing job preferences reflect the conditions of the labour market. On the one hand, we see young people thronging to sit for preliminary examinations in astonishing numbers, on the other hand, we observe self-employment/business emerging as a ‘promising option’.