Archive · 22 Aug 2025
Over 1 Lakh Jobs Lost in Government Firms Due to Privatization
Imagine the government runs some companies.
Over the past five years, the government sold some of these companies to private owners, a process called privatization.
This led to a loss of over 1 lakh jobs in these companies.
While the percentage of some minority groups increased, the overall number of employees from these groups decreased.
Experts say this has made it harder for people to find jobs and worsened the unemployment situation.
The government has made a lot of money by selling these companies.
Over 1 lakh regular jobs were lost in Central Public Sector Enterprises (CPSEs) due to privatization in five years.
The number of regular employees in CPSEs decreased from 9.2 lakh in 2019-20 to 8.12 lakh in 2023-24.
A labour economist stated that job losses have worsened the unemployment crisis in India.
The absolute number of Scheduled Caste (SC) and Scheduled Tribe (ST) staff decreased, while Other Backward Classes (OBC) employees increased.
The government has realized about ₹4,36,748 crore from disinvestment proceeds since 2014-15.
- Who
- Government, employees of CPSEs, and labor economists.
- What
- Over 1 lakh jobs were lost in government firms due to privatization.
- When
- Between 2019-20 and 2023-24.
- Where
- India, specifically in Central Public Sector Enterprises.
- Why
- Due to disinvestment and privatization of CPSEs.
Concerns Over Job Losses
Government Stance on Representation
Impact on Employment
Concerns Over Job Losses
The privatization has led to a reduction in job opportunities, particularly affecting those from marginalized communities due to the absence of reservation in the private sector. This has worsened the unemployment situation in the country.
Government Stance on Representation
Data on representation of SC/ST/OBC groups in CPSEs shows a marginal increase in their share during this period.
- Job Loss
- Over 1 lakh regular jobs
- Employee Count (2019-20)
- 9.2 lakh
- Employee Count (2023-24)
- 8.12 lakh
- Disinvestment Proceeds (since 2014-15)
- ₹4,36,748 crore
- Unemployment Rate (approx.)
- Over 5% (April-July 2024)