India's deep-seated fascination with government employment, often termed "sarkari jobs," is significantly influenced by the nation's feudal past, where public service conferred status and authority beyond mere financial remuneration. This perspective comes from economist Shamika Ravi, a distinguished member of the Prime Minister's Economic Advisory Council (EAC-PM).
Feudal Roots of Sarkari Job Preference in India
In a recent interview, Ravi highlighted that the persistent preference for government positions remains especially strong in regions where economic development has been sluggish, and the transition towards private-sector opportunities has been slower. "There is a bit of the feudal history that we have carried with us where government jobs are more than the direct earnings," Ravi stated, emphasizing that these roles are seen as matters of prestige and power.
She clarified that this trend is not uniform across the vast country. States like Gujarat, Maharashtra, Karnataka, and Telangana exhibit a less pronounced inclination towards government employment, suggesting a correlation with robust economic growth and a thriving private sector.
The Economic Cost of Prolonged Exam Preparation
Ravi also drew attention to the tangible economic costs for individuals dedicating years to preparing for government recruitment examinations. She cited a study published in the Journal of Public Economics, originating from Tamil Nadu, which analyzed the lifetime earnings of those who pursued government jobs versus those who entered the labor market directly.
"The lifetime earnings of people who never sat for government exams are higher than their cohort — people who are similar to them who have spent more than X number of years taking government exams for jobs," Ravi explained.
This research indicates a significant "loss of value" for young people who spend five to seven years in their twenties—a highly productive period—focused solely on exam preparation. This time, she argued, could otherwise be spent acquiring professional experience and developing marketable skills, which the market values more highly.
Unemployment Rates: A State-Level Disparity
The discussion extended to concerns about job availability and quality, particularly for engineering graduates facing lower starting salaries. While India's national unemployment rate hovers around 3-3.1% according to recent Periodic Labour Force Survey (PLFS) figures, Ravi cautioned against relying solely on this aggregate number.
She stressed the importance of analyzing unemployment at the state level, noting a strong inverse relationship between a state's ease of doing business climate and its unemployment rate. States like Gujarat (0.9%), Karnataka (1.2%), and Chhattisgarh (1.9%) demonstrate significantly lower unemployment rates, aligning with their economic growth.
In stark contrast, Ravi pointed out that Kerala, her home state, reports an unemployment rate of 12%, significantly higher than the national average. This disparity underscores that national figures often obscure critical regional variations in labor market outcomes.