India's Skill Crisis
Youth unemployability is a bigger crisis than unemployment
- 53% of employed youth suffer some degree of skill deprivation while only 8% of youth are unemployed
- 57% of India's youth suffer some degree of un-employability
The 82.5 million unemployable youth fall in three skill repair buckets:
|
Type |
Duration of the Training |
Unemployable Youth |
|
Last mile repair |
0.5 yrs |
5.3 million |
|
Interventional repair |
0.5-1 yr |
21.9 million |
|
Structural repair |
1-2 yrs |
55.4 million |
Repairing this skill deficit needs Rs 490,000 crore over two years. Current budgets cover 25% of this but only allocating more money won't solve the problem.
The Poor HRD Regime
- Demand/ Supply mismatch; 90% of employment opportunities require vocational skills but 90% of our college/ school output has bookish knowledge
- High dropout rates (57% by Grade 8) are incentivized by the low returns of education; 75% of school finishers make less than Rs 50,000 per year
- Poor quality of skills/ education show up in low incomes rather than unemployment; 45% of graduates makes less than Rs 75,000 per year
The Urgency
- Unviable Agriculture; 96% of farm households have less than 2 hectares. 70% of our population and 56% of our workforce produce 18% of GDP.
- Demographics; 300 million youth will enter the labor force by 2025. 25% of the world's workers in the next four years will be Indian.
- Our 50% self-employment does not reflect entrepreneurship but our failure to create non-farm jobs and skills.
- The skill deficit hurts more than the infrastructure deficit because it sabotages equality of opportunity and amplifies inequality while poor infrastructure maintains inequality (it hits rich and poor equally).
The increasing returns to skills and skill deficit are reflected in the 10% increase in inequality (Gini coefficient) since 1994.
The Three problems
|
Matching |
Connecting Supply to Demand |
|
Interventional repair |
Repairing Supply to Demand |
|
Pipeline |
Preparing Supply to Demand |
The Solution
- Innovation at the intersection of employment/ employability, assessment/ training and matching/ mismatch.
- As the Indian economy expands; there is an acute shortage of skilled people. Teamlease and IIJT are now looking beyond the initial phase of lamentation of the problem of "skills crisis" to proposing specific, scalable and effective solutions to the problem.
- By working closely with the State & Central Governments and Ministries, we aim to reach out to job seekers across the country and provide six basic services.

Some Projects
HRDC (Human Resource Development centre)
IIJT-TeamLease has partnered with Karnataka Vocational TSDC and DET, Government of Karnataka to establish, Karnataka State's first Human Resource Development centre at Mangalore under the public private partnership model. The HRD centres are aimed to be upgraded Employment Exchanges that now have on offer a systematic approach to providing jobs to the job seekers and or work around employability for skill gaps, if any.
The services offered are Registration, Assessment, Career Counselling, Training and Placements. Since its inception (Oct'09), there have been over 7500 candidates catered to for Assessments, Counselling and has been able to place 1200+ candidates in over 10 months. Apart from the trainings offered internally, External Training partners are also invited to offer / extend employability training to the job seekers through HRDC and be instrumental in providing ready work-force to the service industry. All services at the HRDCs are borne by KVTSDC.
KEC (Karnataka Employment Centre)
Karnataka Employment Centre is another flagship project in the public private partnership arena along with KVTSDC. The first of its kind public-private employment exchange has been set-up at Bangalore that delivers the full range of services covering Registration, Assessment, Counseling, Training, Certification and Placement to ensure successful access to the job market for the youth of Karnataka. These services are subsidized by KVTSDC and TeamLease / IIJT.
["Shri B. N. Bachegowda, Honorable Labor Minister, Government of Karnataka said, "The Government of Karnataka is committed to ensuring access to livelihood opportunities for the youth of this state. We recognize that the lack of necessary job skills is the core issue affecting employability of our youth and the KVTSDC was created to address this issue. Given the scale of this issue and opportunities in the market, cooperation with and involvement of the private sector is a key requirement. With its proven experience and expertise, we hope the partnership with TeamLease will help successfully improve the employability and employment potential of the youth of Karnataka."]
Vanbandhu Koushalya Kendra
IIJT-TeamLease has been mandated by D-SAG under the aegis of the Government of Gujarat to train and place 60,000 tribal youths in 5 years. To achieve the same IIJT-TeamLease is setting-up 20 Training and Placement centres called Vanbandhu Koushalya Kendras across Gujarat to reach out to the tribal youths and extend training and placement services to the tribal youth of Gujarat. Note: The pictures below can be taken from IIJT website in bigger size and higher resolution.
Other State Governments
IIJT-TeamLease has adopted Government ITI's across different States in the country under the PPP model to upgrade the Infrastructure / course content / Training delivery and bring about Jobs to the campus. Having strong experience as a people supply chain company and with PAN India operations, TeamLease will extend its business expertise, processes, industry linkage and job openings with the ITI's and IIJT will add its experience in content and training to bring about the required change.
PPP Overview
|
State |
Project Name |
Locations |
|
Karnataka |
Human Resource Development Centres - Employment Exchange up-gradation |
Mangalore |
|
Bijapur |
||
|
Chamrajnagar |
||
|
Mandya |
||
|
Udupi |
||
|
Bellary |
||
|
Karnatak Employment Exchange |
Bangalore |
|
|
Gujarat |
Vanbandhu Kaushalaya Kendra – Tribal Employment Exchange |
Ahmedabad |
|
Mandvi |
||
|
Rajpipla |
||
|
Ucchal |
||
|
Vansda |
||
|
Nanaponda |
||
|
Vyara |
||
|
Skills Up-gradation Centres – GIDC |
Kerala |
|
|
Kathwada |
||
|
Kalol |
||
|
TeamLease University |
- |
|
|
Haryana |
Skills Centre |
Sonepat |
|
Andhra Pradesh |
EGMM |
SRNagar |
|
Uppal |
||
|
Tirupati |
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|
Vizag |
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Yalamanchili |
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|
Cheedikada |
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|
Vijayawada |
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|
Machilipatnam |
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Jaggayyapeta |
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Kakinada |
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Vijaynagaram |
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Nizamabad |
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Warangal |
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Hanumakonda |
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|
Eluru |
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Karimnagar |
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Siddipeta |
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|
Vidyuth Nagar |
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|
Shirdinagar |
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|
Adimurthy Nagar |
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Mahaboobnagar |
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|
Guntur |
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|
Srikakulam |
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|
Khammam |
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|
Ongole |
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|
West Bengal |
DET |
- |
|
Municipalities |
- |