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Economic Survey 2022: 17.9% orgs in major sectors impart formal skill training

Economic Survey 2022: 17.9% orgs in major sectors impart formal skill training

The number of organisations imparting on-the-job trainings was much higher at 24.3 per cent.

According to the Economic Survey, 17.9 per cent organisations in the nine major sectors were imparting formal skill training According to the Economic Survey, 17.9 per cent organisations in the nine major sectors were imparting formal skill training

The government has taken several steps to bridge the gulf between skill levels in the population and industry requirements from new hires. According to the Economic Survey, 17.9 per cent organisations in the nine major sectors were imparting formal skill training.  The number of organisations imparting on-the-job trainings was much higher at 24.3 per cent.

The survey states that while IT/BPOs sector (29.8 per cent) was the industry leader in providing formal skill training, financial services (38.8 per cent) took the cake when it comes to imparting on-the-job training to employees. The sector that has invested the least in both skills training as well on-the-job training is accommodation and restaurants with 7.1 per cent candidates getting formal skill training and 13.4 per cent having on-the-job training.

Graphic: Mohsin Shaikh
Graphic: Mohsin Shaikh

In case of skill training, sectors like financial services (22.6 per cent); education (21.1 per cent); health (20.2 per cent); manufacturing (17.8 per cent); construction (15.5 per cent); transport (13 per cent) and trade (11.2 per cent) have done considerably well.

After financial services, the sectors that fared well in providing on-the-job training to their employees are IT/BPOs (36.1 per cent); manufacturing (28.3 per cent); construction (26 per cent); health (24 per cent); education (22.1 per cent); transport (20.6 per cent) and trade (17.4 per cent).

Graphic: Mohsin Shaikh
Graphic: Mohsin Shaikh

The Economic Survey 2021-22, tabled by Finance Minister also highlighted that formal vocational/technical training among youth aged 15-29 years and working population aged between 15-59 years has improved drastically in 2019-20 over 2018-19. The improvement in skills has been reported for males and females both in rural and urban areas. Formal training for females remains lower in rural areas compared to urban areas.

But how do efforts at skill development help the youth and the industry? 

“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 up-gradation, building of new skills and innovative thinking not only for existing jobs but also jobs that are to be created,” the Economic Survey read.

Besides the National Educational Policy 2020 which is aimed at focusing on vocational education, the government has also rolled out policy measures regarding the same like Skill India Mission, Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Jan Shikshan Sansthan (JSS) Scheme, National Apprenticeship Promotion Scheme (NAPS), Aatmanirbhar Skilled Employees Employer Mapping (ASEEM) portal, India International Skill Centre (IISC) Network, Pradhan Mantri Dakshta Aur Kushalta Sampann Hitgrahi Yojana (PM-DAKSH) and Craftsmen Training Scheme.

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