As we get ready to usher in 2011, most parts of the world are staring at economic reality and uncertain future. No one knows for sure in India, how many are employed for a livelihood. Last cited information indicates a total of 459 million people with 7% ( 26 million) under organised employment. A recent reference by the Ministry of Labour indicates that Contract labour is 130 million. The rest would presumably be self employed and or engaged in agriculture. While this is where we stand today, future forecast states that India would be needing 240 million new work force by 2022 and another 80 million by 2015 as per CII estimates. So, what is happening on ground. Most employment surveys indicate, that hiring has improved , doubt remains if that is actually creating the millions.
If this is the demand side, let us look at the supply side. More than 240 million would pass out from schools and vocational education would be needed for 170 million students. The remaining may need higher education. The current capacity of our infrastructure is barely 3 million students in higher education. Shortages of trainers, vocational education infrastructure is apalling . All the major private players in vocational education space can barely address intake of half a million a year.
I wonder if the Government is actually serious in doing something about this gap. Take a look at skilled resources who are retiring out of defence forces every year. A backlog of nearly 2 million retirees already exist, and yet they have hardly any meaningful resettlement plans while the industry is supposed to be starving for skilled talent. Simply by using this abled work force by transferring their current skill set into corporate requirement can help in mitigating some of the acute shortage that industry is clamouring e.g., in the Automotive industry a significant population can be absorbed in franchise network across the country.
The government seems to be more worried about assessments and certification. Since government is not likely to be the largest employer , certification should be driven by industry. Most businesses are looking at rural economy. I am sure opportunities exist in all parts of the country. Creating , mini cooperatives by enabling entrepreneurship can spar rapid economic development. We have seen in the past. AMUL did wonders to Gujarat. China did it 25 years ago, and they have a GDP 5 times of India. L&T realising need for skilled labour in construction has set up a school where training is imparted on the job/ apprentice model. The pass outs are placed suitably. They have stated in ET, that Rs 24000 is the cost incurred by L&T for training vocational skill. Team Lease , a staffing solution provider has plunged into this business. They see it as a natural integration to their core area. They are charging Rs 30,000 to Rs 60,000 per candidate. This means, cost of imparting vocational education is not going to be cheap. Surprisingly Government of India seems to have provided Rs 15 per hour for modular employability courses. Such prices will make a mockery of skill development. These Government run institutes have facilities but no faculty. Some are languishing with out dated equipment and teaching processes.
It is high time , that a cooperative model is created between the private sector and government institutions with least red tapism, if one has to seriously do something about creating employability and entrepreneurship in the Indian sub-continent a partnership model is a must. The key enablers would be to draw out a curricullum based on industry needs, faculty with industry experience ably supported by performance and learning and development experts. While this can come from the private sector, the Government , should make available their current resources and facilities. Industry can augment investment in technology and tools for the prepare phase and support employment post training. Such a model can address the needs
