Skill Development-A Way Forward - NsSO, Labor Force Participation Rate (Download PDF)

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Including industry alliances for internship and employable skills. As per the National Policy for Skill Development and Entrepreneurship 2015 more than 54 % of India՚s population is below 25 years of age. 62 % of India՚s population is aged between 15 and 59 years.

  • Total workforce is about 52 crore out of which 49 % are employed in agriculture
  • Indian economy needs to generate 70 lakh jobs annually to absorb the net addition to the workforce.
  • Lack of focus on industry linkages and core employable skills were the main resons for the decline in employability.
  • As per India skills report 2019 around 43 % of engineers from various industries across the country had remained unemployed.

Labour Force Participation Rate

  • Explains the condition of labour markets.
  • The extent of population that is economically active.
  • The percentage of persons in the labour force among the persons in the population.

Unemployment Rate

  • Percentage of unemployed person in the labour force.
  • As per NSSO data unemployment rate was higher among the educated youths and has increased over the years.
  • Mismatch between demand and supply of skilled labour is one of the causes for increasing unemployment.

NsSO Annual Report, PLFs, 2019

NsSO Annual Report, PLFs, 2019
Sectors as per NICPercentage of Employment
Agriculture, forestry and fishing44.10
Mining and Quarrying0.41
Manufacturing12.13
Information and Communication0.99
Electricity, gas, steam and air conditions supply0.34
Water supply, sewerage, waste management and remediation activity0.25
Wholesale, retail trade, repairing motor vehicle and motorcycle.10.09
Transportation and storage4.93
Accommodation and Food services1.87
Financial and Insurance activities1.05
Real estate activities0.21
Professional, scientific and technical activities0.83
Administrative and support service activities1.19
Education3.78
Human health and social work1.20
Art, Entertainment and recreation0.28
Other service activities1.92
Formal and Non-Formal Training
Category of PersonFormal TrainingNon-formal TrainingTotal
Total (Male & Female)2.06.1011.4
Male2.309.104.8
Female1.73.108.1

Way Forward

  • New India@75 skill development.
  • Industry stakeholders must publish their vacancy details through the National Career Centres.
  • The training capacities of trainers working at various training institutes need to be upgraded.
  • MSDE should consist of a single regulatory body with corresponding branches in all the states.
  • Centralised MIS should be there to provide information on skill development.
  • Internships in industries are very important so that employers and trainees can understand each other՚s requirements.

NITI Aayog՚s Report Strategy for New India@75

  • To address the requirements of the skilled workers in the unorganised sector.
  • Setting up Overseas Employment Promotion Agency under the Ministry of External Affairs.
  • More focus on the identification of transferrable skills.
  • Plans and strategies should be developed by geography and sector by mapping the availability of infrastructure using Talukas/districts.
  • Demand for skilled manpower should be generated by the Labour department along with skill development functionaries.

- Published/Last Modified on: April 1, 2020

Kurukshetra, Education

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