The skill gap (GS Paper 3, Governance)
Introduction:
- Soon after taking charge, Andhra Pradesh’s new Chief Minister, N Chandrababu Naidu, announced a flurry of decisions such as an increase in pensions and revoking the Land Titling Act.
- Possibly the most noteworthy decision, however, has been the order for a skill census.
Why was a call for Skill census given?
- On the campaign trail, CM Naidu had said that through a skill census, he would gauge the skill levels of people and compare it to the global skill requirements.
- As per CM Naidu the skill census will address the skill shortcoming and make people more employable.
How skill census brought the unemployment problem of Andhra Pradesh in sharp focus?
- While it is well-known that India has been facing considerable unemployment related stress, most of the attention is centred around the so-called BIMARU states such as Uttar Pradesh and Bihar.
- But data from the official Period Labour Force Survey for 2022-23 — the last full-year report — shows that Andhra Pradesh is worse-off than many such states.
- For instance, at 4.1 per cent, Andhra Pradesh has a significantly higher unemployment rate (for all aged 15 years and more) than not just the national average (3.2 per cent) but also many states like Bihar (3.9 per cent), UP (2.4 per cent), Madhya Pradesh (1.6 per cent).
- Moreover, the unemployment gets worse when one zeroes in on the youth cohort (15 to 29 years).
- Youth unemployment rate in Andhra was 15.7 per cent — much higher than the national average of 10 per cent as well as states like Bihar (13.9 per cent), UP (7 per cent), Madhya Pradesh (4.4 per cent) and Rajasthan (12.5 per cent).
- Further, data suggests that getting higher education doesn’t seem to help matters.
- At 24 per cent, the unemployment rate among graduates in Andhra Pradesh was higher than Bihar (16.6 per cent), UP (11 per cent), Madhya Pradesh (9.3 per cent) and Rajasthan (23.1 per cent).
What is crisis of unemployability?
- The crisis of unemployability is a situation where a significant portion of the workforce struggles to find jobs, not necessarily due to a lack of open positions, but because they lack the skills or qualifications that employers are seeking.
- It's distinct from traditional unemployment, which focuses on a shortage of available jobs.
India’s crisis of unemployability
- The unemployment crisis in India is not just about unemployment — it is also a crisis of unemployability.
- The 2015 policy of the Ministry of Skill Development and Entrepreneurship said: “Our country presently faces a dual challenge of paucity of highly trained workforce, as well as non-employability of large sections of the conventionally educated youth, who possess little or no job skills.”
- The skill census is a step towards addressing, what a 2018 NCAER report calls, “India’s skilling paradox”: Dwindling opportunities in agriculture, much potential for jobs in manufacturing and services, but not enough people with the right skills.
- It will have important takeaways for course correction in the education system as well.
Conclusion:
- The skill census not only promises to enhance the employability of the workforce but also seeks to fine-tune the educational system to better meet the demands of the job market.
- As Andhra Pradesh takes this proactive measure, it sets a valuable precedent for other states to follow, potentially transforming the landscape of skill development and employment in India.
