Skill Development-A Way Forward - NSSO, Labor Force Participation Rate
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
Sectors as per NIC | Percentage of Employment |
Agriculture, forestry and fishing | 44.10 |
Mining and Quarrying | 0.41 |
Manufacturing | 12.13 |
Information and Communication | 0.99 |
Electricity, gas, steam and air conditions supply | 0.34 |
Water supply, sewerage, waste management and remediation activity | 0.25 |
Wholesale, retail trade, repairing motor vehicle and motorcycle. | 10.09 |
Transportation and storage | 4.93 |
Accommodation and Food services | 1.87 |
Financial and Insurance activities | 1.05 |
Real estate activities | 0.21 |
Professional, scientific and technical activities | 0.83 |
Administrative and support service activities | 1.19 |
Education | 3.78 |
Human health and social work | 1.20 |
Art, Entertainment and recreation | 0.28 |
Other service activities | 1.92 |
Category of Person | Formal Training | Non-formal Training | Total |
Total (Male & Female) | 2.0 | 6.10 | 11.4 |
Male | 2.30 | 9.10 | 4.8 |
Female | 1.7 | 3.10 | 8.1 |
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.
✍Examrace Team at Aug 25, 2021