AN ENCOUNTER OF UNEMLPOYMENT WITH NATIONAL SKILL- INDIA DEVELOPMENT CORPORATION (NSDC) Kiran Singh Parihar Research scholar, Commerce Department S.V.N University Sagar, India 1. ABSTRACT According to the reports of a Boston Consulting Group, India will have a surplus of 56 million working people while the global shortage of skilled working people will be 47 million by 2020. With a demographic dividend of more than 50% of the population within the age bracket of 25, the 11th Five Year Plan identified the potential of India emerging as an important global entity in skill development. Currently only 10% of the youth population has proper vocational training. Realizing the importance of proper vocational training and skill development programs, the 11th Five Year Plan established the PM s National Council for Skill Development (for framing policies), the National Skill Development Coordination Board - for coordinating the various skill development programs, and finally the National Skill Development Agency (NSDA) a catalyst to enhance the skill development programs. Despite the fact that the Indian economy has witnessed a considerable growth in the last two decades, this growth rate has not been uniform. Underemployment, low educational levels, a high rate of dropouts and lack of proper vocational training which can provide better employment opportunities, are still prevalent. The shortage of skilled workforce is evident from the discrepancies of demand and supply in the market. Later the PM s Council and the Coordination Board had been absorbed in NSDA, which is now empowered to serve as the flagship for countrywide skill development programs undertaken by the Government. 2. KEYWORDS employment, government, population, skill- India, vocational training, youth, 3. RESEARCH METHODOLOGY In the present study the data have been collected from both the sources i.e. primary and secondary. Further designed as the best way to explain the research work (in terms of data, quality, explanation, collection and clarity). The data is collected from various official issues and reports; which is carefully analyzed, interpreted, explained and presented with the help of well defined graphs. The presented study have analyzed data and facts from various source and it is collectively in descriptive form. 4. OBJECTIVES OF THE STUDY To understand the current situation on unemployment in the country To evaluate the recently launch schemes by the government like skill India and start up India To analyze the latest scheme meets the need of the youth to eliminate their problem of unemployment To enhance knowledge about govt. newly introduced schemes of skill - development. 5. INTRODUCTION The unemployment scenario is quite bleak in India. With every passing day, we are heading towards a more precarious situation. A developing economy like India is defined by its large population and large-scale unemployment, further leading to socio-economic issues like malnutrition, poverty, drug & substance abuse and anti-social & criminal activities, etc. 29
According to a National Sample Survey Office (NSSO) last year also there was a dip in India s employment rate that had gone down to 38.6% in 2011-12 (July-June) from 39.2% in 2009-10. With this unemployment rate had gone up from 2.5% to 2.7%. In the year 2004-05 the employment rate was 42%. In the five year period falling between 2004-05 and 2009-10, 2.7 million new jobs were created where as in the previous five years 60 million new jobs were created. As per the survey number of women who lost their jobs was more than that of men. Number of employed men between 2009 and 2012 remain almost same but number of employed women dropped from 18% to 16%. Though in terms of percentage it looks small but the actual figures are really daunting. In rural sector about 90 lakh women lost their jobs in the period of two years. On the other hand 35 lakh women were added to the workforce in urban areas. Overall unemployment rate in females was more as compared to males. For females it was 7.2% whereas for male the unemployment rate was 4%. Creating new jobs is a crucial task and plays an important role in the economy. Drop in the financial market hits job market and creates unemployment. India has the largest population of youth in the world with about 66% of the population under the age of 35, so impact of declining financial market is the worst in India. Though education level in the recent years has increased but skill development is still a crucial issue. Moreover, poverty, limited access to skill based education, work experience are some of the major factors that lead to unemployment and underemployment. During recession, job freezing is the most common occurrence done by hiring companies. Under such circumstances there is a greater degree of unemployment. Factfile:- September 2015, the unemployment reached a mark that 23 lakh people applied for 368 posts of peon in the state secretariat in Uttar Pradesh. Among the applicants, 255 candidates with a PhD degree and more than two lakh hold BTech, BSc, Mcom and MSc degrees. 5.a Causes of Unemployment There are many causes of unemployment; major of which are: Population growth: High growth in population leads to surplus labour, especially in the rural areas. India, being the second most-populous country, has almost 70% of its total population in the rural areas (2011 census). Surplus labour exists in the rural areas, however, employment in such areas mostly remains seasonal, thus causing unemployment in the country. Poverty: Poverty results in inability to purchase land and other resources and thus people have access to limited capital. Limited capital: It further increases dependency of more and more people on limited means. Labour-intensive economies: With such high population, labour is available at cheaper rates. Thus, more people are easily employed for a particular work, which can be done by lesser number of people. Limited skills and knowledge about better opportunities: Another reason of unemployment is also cause of limited skills of the laborers. At the time when majority of India s most population lives in the rural areas with limited means, people lack proper skills to be recruited at better places. 5.b Possible Solutions India, as an economy, has all the above features as a developing country. From a holistic point of view, several solutions of tackling unemployment can be: Educating the masses for the population control measure through family planning programmes. Encouraging mobility of the workforce from rural to urban areas. And also avail employment in rural areas as well. Making credit available to the people for selfemployment. Providing skill development and entrepreneurship programmes. 6. GOVT MAJOR STEPS TOWARDS UNEMPLOYMENT (an assessment of skill India) Today, youth is now more interested in skill based job as salary is better. This has been shown by an increase in the education loans in India. As per the data by Reserve Bank of India, in the past four years, outstanding education loan in the category of personal loan has almost doubled. Also there is a rise in the number of defaulters of education loan that clearly indicates the unemployment state in India especially for students who are looking for a job is bad. By the year 2020 there is an abundance growth of man power required in various sectors. Where sectors like auto and auto components, construction industry, textile, retail and real estates have estimated a vast growth in demand of manpower in near future. So also, furniture, leather and 30
gem and jewellery and IT sector are high in demand for human resources. GROWTH IN MAN POWER REQUIREMENT BY 2020 FIGURES IN MILLION Source: Forbesindia It is also high time now measures are taken to improve the physical and mental development of the youths of the country so that none of them remains unemployed and the country s unemployment problem also gets reduced. It is time to open up avenues by which the youth accepts responsibility and no one remains idle because an idle youth is a burden to the economy. The economy should concentrate on job creation and social security schemes. With this new approach towards skill development, India can definitely move forward towards its targeted results. According to the reports by NSSO, illiterate population has the lowest unemployment rate. Because this segment of the society is ready to do low paying jobs. Educated youth is facing the most of unemployment that shows lack of skill based employment opportunities in India. have been launched and older ones modified to curb this social problem. To which Government of India launches skill India Development Corporation and startup India. NSDC SKILLING INDIA : TOTAL TRAINING 249 PARTNERS TOTAL TRAINING 3,222 CENTERS PEOPLE TRAINED 55,70,476 PEOPLE PLACED 23,88,009 PARTNERS CASE STUDIES: Following are the agencies of NSDC who helps to provide vocational training to the needful. The Indian Government has taken several measures to curb unemployment as a whole. Many self-employment schemes 31
NSDC AGENCIES B-Able IIGJ B-Able Kaushal Vikas Yatra Pratham Institute Labour Net Skill Sonic Arth- Vidhya Pipal Tree Ventures Drishtee with Godrej Agrovet Ltd. VARIOUS VOCATIONAL TRAINING Training sewing machine operators Skilling motor vehicle mechanics Creates professional brew masters Helps employ displaced family Helping jail in-mates for a better future Creating opportunities for deaf and dumb students Entrepreneurship and social changes through skills An initiative from AISECT For educating and vocational training Training onsite workers for sustainable growth Swiss vocational education and training Accounting Skill development Impact study of cattle husbandry training 6.a Objectives of Skill India The main goal is to create opportunities, space and scope for the development of the talents of the Indian youth and to develop more of those sectors which have already been put under skill development for the last so many years and also to identify new sectors for skill development. The new programme aims at providing training and skill development to 500 million youth of our country by 2020, covering each and every village. Various schemes are also proposed to achieve this objective. 6.b Advantages of Skill India The idea is to raise confidence, improve productivity and give direction through proper skill development. Skill development will enable the youths to get blue-collar jobs. Development of skills, at an young age, right at the school level, is very essential to channelise them for proper job opportunities. There should be a balanced growth in all the sectors and all jobs should be given equal importance. Every job aspirant would be given training in soft skills to lead a proper and decent life. Skill development would reach the rural and remote areas also. Corporate educational institutions, non-government organizations, Government, academic institutions, and society would help in the development of skills of the youths so that better results are achieved in the shortest time possible. 6.c Features of Skill India The emphasis is to skill the youths in such a way so that they get employment and also improve entrepreneurship. Provides training, support and guidance for all occupations that were of traditional type like carpenters, cobblers, welders, blacksmiths, masons, nurses, tailors, weavers etc. More emphasis will be given on new areas like real estate, construction, transportation, textile, gem industry, jewellery designing, banking, tourism and various other sectors, The training programmes would be on the lines of international level so that the youths of our country can not only meet the domestic demands but also of other countries like the US, Japan, China, Germany, Russia and those in the West Asia. Another remarkable feature of the Skill India programme would be to create a hallmark called 32
Rural India Skill, so as to standardise and certify the training process. Tailor-made, need-based programmes would be initiated for specific age groups which can be like language and communication skills, life and positive thinking skills, personality development skills, management skills, behavioral skills, including job and employability skills. 7. PROBLEMS Following are the challenges likely to be faced by the vocational training programs undertaken by the Government as per the 12th Five Year Plan: Expansion of the various projects in remote and difficult areas through E-Learning, Internet and simulation packages Setting up of vocational training centers in underdeveloped areas Designing market oriented projects and extensive promotion of public private partnership Introducing AADHAR based tracking of the beneficiaries in pre and post placement programs Revamping the entire Employment Exchange Network to function as an effective human resource development centers Increase credibility of the certification procedure and streamlining it to avoid delays in granting certificates be made simpler. At present, there are 44 labour laws in India that could be grouped into four separate codes. The codes are expected to deal with areas such as wages, social security, industrial relations, safety and working conditions. There are four wage Acts in India Minimum Wages Act 1948, Payment of Bonus Act 1965, Payment of Wages Act 1936, and Equal Remuneration Act 1975. These could be included in the aforementioned labour codes. 9. CONCLUSION A strict monitoring of the funds released under various schemes and projects to ensure their proper utilization and avoiding any misappropriation. The target of the 12th Five Year Plan is to create 50 million employment opportunities in the non agricultural sector with an equivalent supply of skilled manpower by the end of the plan. As evident from the above discussions, the ball has been set rolling. The Indian Bank has formulated an educational loan scheme for the underprivileged which is planned to cover tuition fee, exam fee, caution deposits, etc. The loan amount may vary from Rs 20,000 to Rs 1.5 lakh for a course of duration of more than one year. However, a more aggressive persuasion on the part of the Government is essential to generate 50 million work opportunities at the end of the 12th Five Year Plan. What shape Skill India will take and what it will do only time can tell. But no doubt it seems to be a good initiative providing skills to people, especially because INDIA one of the few countries all across the world whose working age population will be very high, few years down the line, going by its ever-increasing growth of population, as per the World Bank. 10. BIBOGRAPHY 8. SOLUTION: More focus on Make in India and Skill India The central government is also putting a fair bit of emphasis on its pet projects Skill India and Make in India. Dattatreya says that at the moment these are high on the priority list of the national government. It is expected that by the end of the 2015-16 financial year the Indian Government will have created one crore new jobs. At present, India has 978 university employment guidance information bureaus and employment exchanges. 8.a Reform in Labour Laws The Indian Government is also looking to reform the labour laws. It has reasoned that since these were framed five decades back they need to be reformed so that they could The Labour Bureau under Union Ministry of Labour and Employment released an Annual Employment & Unemployment Survey report. National Association of Software and Services Companies (NASSCOM) Report, 2014-15 National Sample Survey Organization (NSSO) Reports of a Boston Consulting Group Bureau of Labour Statistics Forbes India Magazine Economic times 33
Times of India http://www.bls.gov/ http://www.nsdcindia.org/ AUTHORS PROFILE- NAME: KIRAN SINGH PARIHAR DESIGNATION: RESEARCH SCHOLAR (COMMERCE DEPT.) INSTITUTION: SWAMI VIVEKANAND UNIVERSITY, SAGAR (M.P.) POSTAL ADDRESS: MIG-II-25, PT. DEEN DAYAL NAGAR, MAKRONIA SAGAR 470004 (MADHYA PRADESH) CONTACT AT: 9407161538 / EMAIL ID: parihar025@gmail.com 34