Since 2014, 18,717 PSU jobs in the oil and gas sector have been cut; workforce reduced by 16.5%

Since 2014, 18,717 PSU jobs in the oil and gas sector have been cut;  workforce reduced by 16.5%

Since 2014, 18,717 PSU jobs in the oil and gas sector have been cut; workforce reduced by 16.5% PSU watch

New Delhi: Government data shows that oil and gas service providers have laid off 18,717 workers since 2014. The total number of jobs in oil and gas feeders in 2014 was 1,13,048, which decreased to 94,331 in 2022-2023. In percentage terms, the reduction means a decline in the total number of jobs by 16.56%. The job cuts came even as profits rose for oil and gas utilities. The net profit of three major oil marketing companies owned by the government increased several times between 2013-2014 and 2023-2014, according to a statement released by the Ministry of Petroleum and Natural Gas on Friday. The profit of Hindustan Petroleum Corporation Limited (HPCL) increased by 824 per cent between 2013-14 and 2023-24, the profit of Bharat Petroleum Corporation Limited (BPCL) increased by 561 per cent during the period and the profit of Indian Oil Corporation Limited (IOCL) recorded an increase of 515 percent in net profit during this period.

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Historical data analysis: Work in oil and gas feeders

The total number of CPSE employees under the Ministry of Petroleum and Natural Gas was 1,26,397 in 2002. There was a gradual decline in the number of jobs from 2002 onwards, resulting in the number of employees falling to 1,11,864 by 2008. After 2008, the total number of jobs in the oil and gas sector number of PSU jobs increased to 1,12,870 in 2009 ., 1,13,427 in 2010 and 1,13,773 in 2011. In 2012, the total number of PSU jobs in the oil and gas sector decreased to 1,13,196 and then to 1, in 2013 it was 12,771 , and then increased again to 1,13,048 in 2014. Subsequently, the labor force size decreased to 1,10,613 in 2016, 1,10,053 in 2017, 1,07,877 in 2018, 1,06,733 in 2019. and 1,03,832 in 2020, 98,028 in 2021 and 95,186 in 2022.

Data for the last six years shows that exploration and production, marketing and research and development (R&D) have been hit the hardest, losing between 20 and 24 percent of their workforce. Meanwhile, refineries saw their workforce decline by 3 percent, while the pipeline sector saw a 7 percent increase in their workforce.

In the years 2017–2023, the largest reduction in clerical employment was recorded

In the years 2017–2023, managerial and managerial positions decreased by 6 percent, supervisory positions by 28.78 percent, clerical positions by 28.95 percent, and the number of employed workers decreased by 22.54 percent.

In terms of sectors, the largest decline in the number of employees in managerial positions over this period occurred in the exploration and mining sector, which amounted to 27%. The number of managers and executives employed in refineries increased by 15 percent, while managers employed in research and development departments decreased by 16 percent.

The share of managerial/management positions in total employment in oil and gas PSUs increased from 54.5% in 2017 to 60% in 2023. While 29% of the total workforce in oil and gas PSUs are laborers, 4% are office workers and 8 percent perform supervisory functions.

What causes job loss?

The trend observed in India is in line with the trend observed across the world. According to the International Energy Agency (IEA) World Energy Employment (WEE) report for 2023, despite a rebound in oil and gas revenues to record levels and an increase in investment in 2021-2022, oil companies did not increase employment, perhaps because due to continued uncertainty about long-term employment needs and instead relied on oilfield services companies and other contractors. The report pointed out that the Covid-19 pandemic has accelerated mass layoffs in the energy industry, but the clean energy industry has seen a better recovery compared to fossil fuels. “Over the same period, 4.7 million jobs were created globally in the clean energy sectors, bringing the number to 35 million, while the number of jobs in the fossil fuel sector recovered more slowly after layoffs in 2020 and remains about 1.3 million lower than the pre-pandemic employment level of 32 million,” we read in the report. An industry source who spoke to PSU Watch cited more jobs given to contract workers and the implementation of automation as other reasons for the decline in the number of jobs. Another source pointed to the mandate placed on PSUs by the government to have a lean and efficient workforce to compete with the private sector. “This is a trend seen across the public sector, especially in PSUs, which have traditionally employed a large workforce. This is not limited to the oil and gas sector,” the source said.

The issue of jobs is a major poll topic ahead of India’s voting in the 2024 general elections. The Congress has accused the Bharatiya Janata Party (BJP) government at the Center of taking away PSU jobs and diluting reservations through privatization. On May 6, the Congress accused the government of being responsible for the loss of 2.7 lakh jobs in central service providers and the increase in the share of gig workers from 19 percent in 2013 to 43 percent in 2022. “PSUs play a key role in inclusive growth, both by developing backward regions and by creating jobs for disadvantaged communities. “The BJP’s willy-nilly transfer of state assets to a few of the Prime Minister’s friends at throwaway prices and the massive job losses that have ensued have highlighted that for Prime Minister Modi, corporate interests will always trump the welfare of the people,” the Odisha unit of the Congress said. posted on X, formerly known as Twitter.

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