Employment — Other reports (Until 2023)

In India, as in many countries around the world, most government jobs are allocated through a system of merit-based exams. Over the past few decades, these exams have become incredibly competitive, at times receiving over 1,000 applications for each vacancy.

Against a backdrop of rising educational attainment, high aspirations, disappointment with private sector opportunities, and a deep unmet need for income security, it is understandable why the demand for public sector employment opportunities is so high.

Yet despite the large footprint that public sector recruitments have in our social, economic and political life, many basic questions about them remain shrouded in mystery. Who applies? Why do they apply? Are these intense levels of competition socially productive, or do they make people worse off? Why are people willing to invest so much in exam preparation? Why are people willing to gamble on such low odds of getting selected?

Our lack of understanding limits our ability to formulate sound labour market policy. As we will see, a large share of college graduates participate in public sector recruitment exams, and candidates for these exams make up a disproportionate share of the overall unemployed population. How can we improve employment outcomes if we do not understand who the unemployed are and how they invest their time?

The main reason for the holes in our understanding is a lack of data. To date, neither private nor public household surveys include questions on whether individuals are preparing for competitive exams; and recruitment agencies have historically been cloistered institutions, understandably concerned about protecting the integrity of the recruitment process. As a result, the crores of candidates preparing for competitive exams around the country remain largely invisible in data, and by extension in policy.

This report attempts to shine a light on this dark corner of the labour market. To do so, the researcher uses several new sources of data. First, he draws on administrative data from a recruitment agency. This data allows us to observe the whole recruitment process for the entire universe of applicants — the first time such data has been made available in the Indian context.

Second, the researcher uses data from a large-scale survey of over 3,000 candidates, which provides information about their investments in exam preparation, their access to resources, their constraints, and their beliefs.

Third, the research collaborators and the researcher conducted interviews and focus groups with candidates to better understand them in their own words. These rich data sources provide new insights into the economic and social life of candidates preparing for competitive exams.

The goal of this report is to demonstrate how both labour market and recruitment policy can be informed by a better understanding of candidate application behaviour. This understanding can, in turn, help us tackle some of the key challenges in the modern Indian labour market — high levels of educated unemployment, a lack of skill development, low levels of female labour force participation, and more.
 

Download the report here

Summary Articles:

VoxDev: The costs of extreme competition for government jobs: Evidence from India

Ideas for India: The costs of extreme competition for government jobs

Further Reading:

Mangal, Kunal (2022a), ​“How much are government jobs in developing countries worth?.” Download here.
Mangal, Kunal (2022b), ​“The long-run costs of highly competitive exams for government jobs.” Download here.

FAQs:

Are the statistics in the report official?

Although the report uses official data, the statistics in the report were not computed by TNPSC. Therefore, none of these statistics are official, and any errors in processing the data are entirely my own.

Is the report written in affiliation with any coaching center?

No. We are academic researchers. No one who was involved in either collecting and analyzing the data had any affiliation with a coaching center.

Will the report be available in Tamil?

We hope to be able to provide a Tamil summary of the report in the near future.

This study examines the performance of MGNREGA during the Covid-19 pandemic in eight blocks across four states of India, viz. Bihar, Karnataka, Maharashtra and Madhya Pradesh. MGNREGA functioning is analysed along the following dimensions: overall impressions of the programme among job card holding households, extent of unmet demand, wage payments, changes in programme functioning during the pandemic, and effectiveness of MGNREGA as a safety net. The blocks were chosen from a list of blocks in which Civil Society Organisations part of the NREGA Consortium are working. All blocks on this list were ranked based on their performance in MGNREGA as reflected in the Management Information System (MIS). Highest and lowest ranked blocks were chosen in each state and are referred to as high performing and low performing blocks in the study The blocks chosen were — Phulparas (Madhubani) and Chhatapur (Supaul) in Bihar, Bidar (Bidar) and Devadurga (Raichur) in Karnataka, Khalwa (Khandwa) and Ghatigaon (Gwalior) in Madhya Pradesh, and Wardha (Wardha) and Surgana (Nashik) in Maharashtra. A two stage random sampling was followed in the chosen blocks. In the first stage, five Gram Panchayats (GP) were randomly chosen in each block based on the Census 2011 list. In the second stage, 50 households were randomly selected in each GP from the MGNREGA MIS list of job card holders. The sampling method ensures representativeness of the results at the block level for all job card holding households. The survey was conducted in November-December 2021. Two reference periods were employed. The first covered the pre-Covid financial year (April 2019 to March 2020) and the second covered the Covid financial year (April 2020 to March 2021). This also includes executive summary of the report.

Download full report here

Download Executive Summary here (English, Kannada, Hindi).

Download Press Release here (English, Kannada, Hindi).

Download slides of key results

Press coverage of report findings

This report essentially takes stock of the employment conditions prevailing in the Indian economy prior to the pandemic and then goes on to delineate the impact of COVID-19 on lives and livelihoods. It also charts a possible policy path forward to address both short-term and long-term challenges of livelihood and employment. The focus is primarily on the non-farm economy while analysis and policy recommendations are at the national level.

We cannot achieve the demographic dividend unless we create jobs for millions of youth. There are multiple forces – thirteen of them identified in this report — working against employment growth in India from both supply side and the demand side. It is proven that large enterprises create very few jobs. Even these few jobs are created for educated youth. Only Micro and Small Enterprises (MSEs) can create large number of jobs across India for workers with wide range of skills and education. Out of a total of just over 63 million enterprises in the MSME sector, 62 million are informal micro and very small enterprises (MSEs). Of these, single worker firms (own-account) are 40 million, firms with 2 to 5 workers are 22 million and firms with more than 5 but less than 10 are estimated at 1 million. 107.6 million workers (97% of all employment in the MSME sector) are in this MSE segment. These MSEs, surprisingly, are more rural than urban — 51% are in rural India. Women-owned firms accounted for 20 % of all enterprises, 16 % of all workers and 9 % of aggregate value-added. There is a huge potential to grow these women owned enterprises. MSEs are the most important segment of the Indian Economy if we want to achieve GDP and Employment growth. Moreover, many of these enterprises are closely aligned with households, particularly in location and ownership. These enterprises play a pivotal role in linking the formal and the informal sector through value chains. We don’t need more micro-enterprises or more single-person firms. Instead, we need to scale-up these existing MSEs. How can we do this? By creating a support system which will make these MSEs go digital, grow in scale and increase their productivity. This will automatically create jobs The Udyog Sahayak Enterprise Network (USENET) proposed in this report is that support system. Why a support system? Because it is not possible to educate millions of the MSE entrepreneurs to become digital experts. Why now? Because India and the world are going digital. In the digital marketplace small can compete better and grow.

Download Policy Proposal Here.

Read media coverage here.

Realising India’s demographic dividend requires a focused policy approach for employment generation. Micro and Small Enterprises (MSEs) can create millions of jobs, across India, for workers with wide range of skills and education. Out of a total of just over 63 million enterprises in the MSME sector, 62 million are informal micro and very small enterprises (MSEs). We do not need more micro-enterprises. Instead we need to help existing MSEs to grow in size. We can do this by creating a support system which enables them to go digital, avail of government schemes, adopt new technologies, and increase productivity. This will create millions of new jobs.

This report is a first of its kind collaboration between Azim Premji University, FICCI, and TISS-Mumbai. It proposes the creation of an Udyog Sahayak Enterprise Network (USENET) at the national level. USENET is a support system for MSEs that will improve Ease of Doing Business for micro and small entrepreneurs. Udyog Sahayak Enterprises will take servcies such as digitisation and formalisation, availing of government loans, subsidies or other benefits, ensuring compliance with local, regional, and national regulation, aiding partnership with digital marketing platforms and digital payment platforms, to the MSEs at their doorstep.

Media Coverage

Press Coverage USENET Report Release
The Times of India: Support system to up ease of doing business
The Economic Times: Azim Premji University, FICCI, TISS, roll out plan for employmenet generation in MSME sector
ETAuto: Policy proposal for employment generation, scale-up in MSME sector
Business Today: FICCI, Azim Premji University recommend 18 lakh Udyog Sahayak Enterprises network to assist MSEs

The Hindu: Draft policy to help grow nano, micro enterprises
The Hindu Businessline: ​‘Set up USENET centres micro, small enterprises’ 

The New Indian Express: Micro firms can create 10.3 million jobs: Report
The Statesman: Azim Premji University, FICCI and TISS form policy proposal for employment generation for MSMEs
Telangana Today: USENET could help MSMEs scale up
The New Indian Express – Edex Live: This network for MSEscan help create 56 million new jobs in 10 years. Here’s how
UNI: Azim Premji University, FICCI, TISS come out with new USENET policy for creating one crore job
The Hans India: Azim Premji varsity, FICCI, TISS roll out plan to generate jobs in MSME sector
SME Times: Report proposes ease of doing biz for MSEs
Nagaland Post: Policy proposal to scale up MSME sector