BY:DHRUVIN PATELNIT,AHMEDABAD

Boosting Skillsets:Increasing the Employability of Youth

In an environment of immense opportunities for economic growth, India requires more national as well as international cooperation among different labour market actors (trade unions, vocational training organisations, committees at the national level) to sustain it.

Despite its demographic dividend and increased literacy levels, India faces youth unemployment as a major challenge for labour market policy. Young job seekers make up 49 per cent of the total unemployed in India.

With 93 per cent of the available work provided by the informal sector, a significantnumber of well-educated youth in India are either unemployed, underemployed,seeking employment or between jobs, or coping with insecure work arrangements.

India’s main challenge regarding youth unemployment is the lack of any form of social security system, as well as proper and adequate avenues for vocational Training.

YOUTH UNEMPLOYMENT:Unemployment is a daunting problem for both the developed and developing countries. India is one of those developing countries which continue to have the problem of unemployment and underemployment despite continuous policy emphasis and programmes to eliminate the problem.

One of the hardest hit segments of the world population is its youth, who are finding it increasingly difficult to get jobs.

The National Sample Survey Organisation found that India’s unemployment rate fell to 3.8% in 2011-12 from 9.4% in 2009-10. The general perception is that unemployment in India is high, but the actual numbers seem reasonable. That’s because self-employment accounts for about 60% of India’s employed population.

Government’s efforts for tackling youth unemployment:

Formulation of national youth policy in 1988 by Ministry of Human Resource Development, Government of India.

National Youth Policy 2003 was designed to galvanize young people to rise up to new challenges.

The National Council for Skill Development (NCSD) in 2005 was constituted under the chairmanship of the Prime Minister.

A three tier institutional structure consisting of :(i) the Prime Minister's National Council on Skill Development, (ii) the National Skill Development Coordination Board(iii) the National Skill Development Corporation, has been set up to take forward the Skill development Mission.

Prime Minister's Rozgar (Employment) Scheme (PMRY)

Training of Rural Youth for Self-Employment (TRYSEM)

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

Swarnjayanti Gram Swarozgar Yojana(SGSY)

Swarnjayanti Shahri Rozgar Yojana(SJSRY)

Kaushal Vikas Yojana (KVY)

JAN'06 JAN'08 JAN'10 JAN'12

8.35 8

9.4

3.8

UNEMPLOYMENT RATE

Reasons for unemployment in India:

I. Shortage of Jobs II. Decent Work DeficitIII. Women – Security and Social Restrictions IV. Skills MismatchV. Lack of training for work VI. Expansion of education VII. Acceleration of population growth and mortality declineVIII. Slow growth of the economy until the 1980s .

REMODELING SKILL-SETS IN YOUTH:

40 million people (in the working age of 15-59 years) are unemployed - survey conducted by the

Labour Bureau of the Government of India in 2010.

India's labour force is growing at a rate of 2.5 per cent annually, but employment is growing at only

2.3 per cent.

Partnership of Govt. Of India with private sector(Implementing agencies) on Non profit basis.

BOOSTING SKILLSET BY CONVENTIONAL TRAINING PROGRAMMES:

Need based short term(6 months or below) skill development programs to be certified under DGET/NCVT in Modular Employable Skills format.

Long term training programs be certified by the Institution providing the training and incentives provided by Govt. only in case of successful placements.

Cost beared: 80 % by Institution willing to absorb and remaining by Govt. of India.

Cost beared: 30% by Implementing Agencies,50% by Govt. of India and 20 % by SPVs(Special Purpose Vehicles)

Implementing agencies may be certified Training Institutions or NGOs functional in the sector for minimum 2 years .

Implementing agencies gain tax exemptions on the capital investment and further Govt. relaxations on their business.

Evaluation be carried out by Independent Third Party on Quarterly basis and Govt. funding policies may change accordingly.

<DGET: Director General for Employment and Training > <NCVT: National Council for Vocational training>

E-learning an aggressive solution:

3.Using available EduSAT and Direct To Home(DTH) platform.

1.“Talk to a teacher “segment for rural infiltration of this methodology (E-learning) tie ups with NIITs.

4.Extending the NPTEL videos for specific skill training and screening them to solve constraint of computers and infrastructure.

IMPLEMENTATION:

ADVANTAGES:

1.Cost benefit in terms of infrastructure allocation and course material distribution

3.Time duration of course can be shortened and adjusted on user end.

2.Cater to the masses easily in comparison to the traditional courses

2.Educational Content access to all government schools through PPP model, by providing tablets for eg:Sakshat

1/ EDUCATION SYSTEM NEEDS TO BE IMPROVED. IT MUST INCLUDE ABOUT FIFTY PERCENT ON THE JOB TRAINING OR PRACTICAL TRAINING AT EVERY LEVEL.

2/ EDUCATION SYSTEM MUST INCLUDE SPITITUAL OR ETHICAL OR NATIONAL VALUES AT EVERY LEVEL.

3/ THE STUDENTS NEED TO BE TAUGHT THE SPIRIT OF WORK IS WORSHIP AT EVERY LEVEL.

4/ THE POPULATION REDUCTION MAY INCREASE THE OPPORTUNITY OF EMPLOYMENT.

5/ DEVELOPMENT ACTIVITY MUST BE SHIFTED TO VILLAGES AND SMALL CITIES.

6/ MIGRATION OF PEOPLE TO FOREIGN COUNTRIES, METROS AND BIG CITIES SHOULD BE STOPPED.

7/ EXPORT OF EVERY ITEM NEED TO BE INCREASED BY INCREASING THE PRODUCTION.

8/ GOVERNMENTSUPPORT TO STRUGGLING INDUSTRIES IN ORDER TO TRY TO SAVE JOBS.

9/ UNEMPLOYMENT AGENCIES COULD TIGHTEN THEIR JOB SEARCH AND JOB ACCEPTANCE REQUIREMENTS.10/ COUNTRIES NEED TO ENSURE THAT THEIR WELFARE SYSTEMS DO NOT PROVIDE DISINCENTIVES TO WORK.

Basic Proposals:

THE RETIREMENT AGE(58 TO 60) SHOULD BE REDUCED(55 TO 58) SO THAT MORE AND MORE YOUTH GET OPPORTUNITIES TO GET EMPLOYABILITY.

11/ Policies affect the labour market by reducing the supply of labour - For example, work sharing, early retirement, and reduced migration.

12/ Cuts in real wages -Cuts in real wages are a reaction to the view that through their demands for higher wages, some groups of workers have priced themselves out of a job

1. Fiscal PolicyFiscal policy can decrease unemployment by helping to increase aggregate demand and the rate of economic growth. The government will need to pursue expansionary fiscal policy; this involves cutting taxes and increasing government spending.

2. Monetary PolicyMonetary policy would involve cutting interest rates. Lower rates decrease the cost of borrowing and encourage people to spend and invest. This increases AD and should also help to increase GDP and reduce demand deficient unemployment.

GOVERNMENT’S ECONOMY SHOULD BE HIGH ENOUGH TO CREATES OPPORTUNITIES OF JOBS FOR YOUTH AND FOR THAT THERE SHOULD BE CHANGE IN TWO MACRO POLICIES OF GOVERNMENT:

Supply Side Policies for Reducing UnemploymentSupply side policies deal with more micro-economic issues. They don’t aim to boost overall Aggregate Demand, but seek to overcome imperfections in the labour market. Hence some suggestions:

1. Education and Training

2. Reduce Power of trades unions

3. Employment Subsidies

4. Improve Labour Market Flexibility.

5. Stricter Benefit requirements.

Education is considered as a capstone for the nation’s development. Despite a large number of educated youth, there is a shortage of skilled manpower. This is the dilemma.

They are mainly lacking three types of skills in employed youth1. Communication Skills2. Analytical skill and problem solving3. Domain.

Ninety per cent of educated youth force are lacking in one of these three main skills required for job and employment. Hence the problem lies in our education system and it can be improved so that every employed youth have these 3 basic skills which is required by any organization.

There must be radical change in our education system.

There must be an interface among Government bodies looking after education, Universities, all India committee of technical education and the representatives of the industries.

The institutes must educate as per industries' needs. The syllabus committees has to interface with the industries.

There must be more focus on practical aspects rather than theoretical.

It should more focus on vocational trainings programs.

To accumulate and disseminate of information on available jobs and workers in which job centres have a nationwide or internationwide, integrated database of jobs, employers, and available employees.

We are proposing new model (Employment Commission of India) to be established in out country.

Aim:

This type of database could reduce the time spent by an average worker on the unemployment roll and ultimately it reduce the unemployment rate.

It is not only going to focus on reducing unemployment rate of India but it is also focusing to produce

1.Educated people 2.Skilled people3.Creative people

Develop sub-state branches of ECI at every district at ITI(Industrial Training Institute).Which will handle the district issue and report to state branch after every 4 month.

Stage-III

Develop super-sub branches of ECI at every state.Which will handle the state level issue and report to central after every 6 month.

Stage-IIEstablishment of employment commission of India(ECI) under the ministry of labour and employment at central level. *Main branch

Stage-I

Start subsequent braches(“job centre plus”) for integrated database of jobs, employers, and available employees, Which collects data and send it to the district main ECI branch.

It works for the smaller area as like taluka levels. It collects the data from the youth(16 to 26 yrs.) from that

particular area as like academic qualification, job preferences, area of interests ,E-mail id, contact no. and link all these details with “AADHAR CARD”.

It ties up with many industries which seeks employers and note down the industries requirements.

Than it will inform appropriate job-seeker youth .

Main Functions of “Job Centre Plus(+)”:

Gov. should also recruit

people through job

centre plus.

Most advantage of it that industries get man force which works with maximum efforts and it increase industries' efficiency and ultimately it effects country’s economy positively as there is no mismatch between industries and employers .

It helps the students to get the jobs. Newspapers, periodicals ,magazines and books which may be helpful to the youth are available in

the centre. Computers with internet connections enable the students to access the employment related

information and help them to boosting their basic skills. Professional counselling services are also made available. The placement advisory documents after every week. Assist students to apply for jobs.

Other functions:

The government should recruit a person by targeting various streets or areas within a city ,who has an authority to take specified fine from people and 60% it, he or she have to submit to the government, if they do as like Polluting the region Spitting in the streets Parking in non-restricted area

Hence, it leads towards “Nirmal India” and provides opportunities of employability.

REFRENCES:

I. http://www.tradingeconomics.com/india/unemployment-rateII. articles.economictimes.indiatimes.com /Collections III. The EconomistIV. National Employability Servey-2012V. (2011) Economic Survey 2010–2011, Department of Economic Affairs, Ministry of Finance. New Delhi: Governmentof India.VI. (2012) Economic Survey 2011–2012, Department of Economic Affairs, Ministry of Finance. New Delhi: Governmentof India.VII. Planning Commission (2008) Eleventh Five Year Plan, 2007–2012. Vol. 1, Inclusive Growth. New Delhi: Planning Commission,Government of India.VIII. World Bank (2010) India’s Employment Challenge – Creating Jobs, Helping Workers. New Delhi: Oxford University Press.