India stands at the cusp of a demographic opportunity with its youth population poised to dominate the global labour force. However, the country faces a paradoxical situation: rising educational qualifications but also high youth unemployment. This gap between educational attainment and employability threatens to transform India’s demographic dividend into a demographic disaster.
The big skilling Parabox:
According to the India Employment Report 2024:
- Youth account for 83% of the total unemployed.
- 30% unemployment rate among college degree holders.
- Two-thirds of the unemployed youth have at least secondary or higher education.
The Periodic Labour Force Survey (PLFS) (May 2024) shows:
- Youth (15–29 years) labour force participation rate is only 42.1%, with a wide gender gap (Males: 61.6%, Females: 22.4%).
Reasons for the Education-Employment Disconnect:
1. Skills Mismatch:
- Only 46% of graduates are employable as per India Skills Report 2021.
- Mere academic knowledge without practical, digital, or soft skills has rendered degrees ineffective in the job market.
2. Coaching Culture and Government Job Fixation:
- A $10 billion coaching industry diverts youth from real skill acquisition.
- Government policies inadvertently promote this culture through subsidized coaching schemes. For example, UPSC, SSC, and banking exams attract millions despite few vacancies.
3. Poor Quality of Education:
- Gross Enrolment Ratio (GER) is at 28%, with a target of 50% by 2035 (NEP 2020).
- However, college seat vacancies (e.g., 300 colleges in Maharashtra reporting zero applications) signal public distrust in educational quality.
4. Fragmented Skilling Infrastructure:
- Only 13% of India’s workforce is trained (PLFS) of which 11% informal and only 2% is formal. In comparison, Germany has 75%, and UK has 68%, while South Korea has 96% skilled workforce.
5. Lack of Industry Linkages:
- 90% of Indian workers are in the informal sector who are hard to reach through formal skilling systems.
- University–Industry linkages also remain weak, resulting in outdated curricula and unprepared graduates.
6. Social Barriers:
- Gender norms restrict female youth LFPR to just 22.4%.
- Persons with disabilities and marginalized communities also face access and attitudinal barriers.
Way Forward:
1. Prioritize Employability:
- Focus on learning outcomes alongside GER and revamp university curricula to include applied learning, internships, and entrepreneurship.
2. Institutional Reforms and:
- Implement Labour Codes to formalize the economy and incentivize firms to upskill workers.
- Create a Skill India commission under MSDE to lead strategy, coordinate ministries, and monitor outcomes.
3. National Skill Census:
- Conduct biennial census to collect real-time, region-specific data.
- Use AI tools to predict demand and personalize training.
4. Strengthen Public-Private Partnerships:
- Promote National Apprenticeship Programs with private sector involvement.
- Incentivize MSMEs to train workers under schemes like “Approaches for MSME Development 2024.”
5. Make Vocational Education Mainstream:
- Integrate vocational training from secondary school onwards and counter negative perception by aligning it with formal education and international mobility.
6. Support Marginalized Groups:
- Provide targeted training and job placement for women, SC/STs, and PwDs and leverage schemes like NRLM and MGNREGA to impart skills in rural areas.
7. Overseas Employment Facilitation:
- Set up Overseas Employment Promotion Agencies to prepare youth for global markets and enhance mutual recognition agreements with G20 nations.
Conclusion:
India’s skilling paradox requires urgent, systemic, and data-driven reforms. A multi-pronged strategy integrating education, industry, technology, and global mobility can enable India to turn its demographic bulge into a global human capital powerhouse.
‘+1’ Value Addition:
- “India’s demographic dividend will be lost if we don’t skill our youth in time.” — World Bank
- India’s current skilling capacity of 10 million per year vs workforce entrants at 13 million/year.
- Andhra Pradesh Skill Census (2024): India’s first digital skill mapping census using the Naipunyam App.
- Australia’s Job Outlook Model: Uses AI to predict future skill demands.
- UK-India Migration and Mobility Partnership (2021–24): Links Indian skilled workers with UK job portals.
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