When one is searching for the jobs, he usually came across the terms public sector and private sector, which are the type of organizations or companies working in the country. A layman often confuses it to differentiate between both these terms as they are interconnected, although the economic expert can easily distinguish between them. For the prosperity of the nation, it is compulsory that both the private sector and public sector of a country work hand in hand. If one of them lag behinds, it shows the instability of the economy and the employment opportunities. The public sector is the part of the nation’s economy that is under control of the government. On the other hand, the private sector is the part of the country’s economy that is under control of the corporations and the private individuals. The public sector is more linked with giving services to the people of the country. Police, Army, Agriculturists are some of the prominent examples of the public sector. On the other hand, the industry is more linked with luxuries of the people of the country, like banking, telecommunication and information technology.
What is Public Sector?
Public Sector is the section of nation’s economy that is under control of the government. The sole purpose of this sector is to serve the citizens in the best possible way. Most primarily it is affiliated with the necessities of the people of the country. In the modern world, there are public sector organizations that are concerned about the initiatives having the latest technology, but mainly it consists of security departments, health departments, insurance agencies, and agriculture departments. The services being offered by them to the general public are either free, subsidized or cost a very little as compare to the private sector charges. The public sector institutes and organizations are run and regulated by the government; the capital for these services is provided from the budget which is the collection of the revenues government earned through different operations, services, and taxes. Those working in the public sector have more job security as compared to those working in the privet sector. It comes up with dozens of benefits like paid leaves, allowances, TA/DA, funds, retirement benefits and many other. The employees in this sector are given promotion on the basis of their seniority and affiliation or loyalty to the company.
What is Private Sector?
The private sector is the section of nation’s economy that is under the control of private individuals or the corporations. The government interference is quite weak in this area, although government consumes the profits raised through these for the sake of betterment of the people of the country. The idea of the private sector was once seen absurd by the experts, but now it globally adopted as it is handy in raising the huge profits. The public sector organization or companies which continuously perform poor regarding providing services to the people and profits are turned into the industry through the policy of privatization. The policy of privatization is quite famous as it turns the losses of the company into profit as the charge of these companies is shifted from the state to the private individuals. The employees working in this sector enjoy good salary package, but at the same time, they have to perform well to retain their spot in the company. The other negative for the private sector employees is that they are not offered the fringe benefits like retirement benefits and paid leaves. The promotion of the employees in this industry is given purely on the merit.
Public Sector vs. Private Sector
- The public sector is the part of the nation’s economy that is under control of the government. On the other hand, the private sector is the part of the country’s economy that is under control of the corporations and the private individuals.
- The sole purpose of the public sector is to serve the citizens in the best possible way, whereas the goal of the private sector is to earn more and more profits.
- From policy making to other regulations, the government has total control of the public sector while private sector witnesses low government interference.
- The employees in the public sector are given promotion on the basis of their seniority and affiliation or loyalty to the company. Contrary to this, the promotion of the employees in private sector is given purely on the merit.
- Public sector offers dozens of benefits to their employees like paid leaves, allowances, TA/DA, funds and the retirement benefits. On the other hand, the employees working in the private sector enjoys excellent salary package, but at the same time they have to perform well to retain their spot in the company.