To unlock the demographic dividend, several steps have been taken to increase the skill levels in population. 

About a quarter, or 24.3%, of establishments were found to be imparting ‘on-the-Job’ training, which is higher in the IT/BPO sector (36.1% of establishments) and financial services sector (34.8%), the pre-budget Economic Survey 2022, tabled by Finance Minister Nirmala Sitharaman in parliament today, said.

As per the report of first quarter (April-June, 2021) of Quarterly Employment Survey (QES) in respect of establishments employing at least 10 workers in major nine sectors, 17.9% of estimated establishments were imparting formal skill training.  

Sectors such as IT/BPO imparted skill training in 29.8% of estimated establishments, followed by 22.6% financial services and 21.1% education sector’s establishments, said the Survey.

Further, about 24.3% estimated establishments were found to be imparting ‘on-the-job’ training, which is higher in IT/BPO sector (36.1% of establishments) and financial services sector (34.8%).

Also, the Periodic Labour Force Survey (PLFS) 2019-20 shows that formal vocational/technical training among youth (age 15-29 years) and working population (age 15-59 years) have improved in 2019-20 over 2018-19. The improvement in skills has also been for males and females, both in rural and urban sectors. However, formal training for males and females is lower in rural than in urban areas.

Skill development efforts of the government aim at the removal of disconnect between demand and supply of skilled manpower, building the vocational and technical training framework, skill upgrade, building of new skills and innovative thinking not only for existing jobs but also jobs that are to be created.

Skilling has become the need of the hour for various industries with emerging technologies. The 2021 IT Skills and Salary Survey by digital learning company Skillsoft found that there are critical skill gaps in 75% of IT departments which are increasing stress levels and decreasing productivity.

According to a report by FICCI in 2021, at least 9% Indians will be in jobs that do not exist currently and 37% of the workforce will require radically changed skill sets to meet their employment demands.