India to struggle to bridge job gaps even if economic growth is 7%: Citigroup

As per the report, Citi estimates India will need to create about 12 million jobs per year over the next decade to absorb the number of new entrants to the labor market. Based on a growth rate of 7 percent, India can only generate 8-9 million jobs a year. Another challenge is the quality of jobs.

As per data from the Centre for Monitoring Indian Economy, a private research firm, which put the jobless rate at 9.2 per cent in May, the highest in eight month. For those aged 20-24, the rate is more than 40 per cent, according to CMIE figures.

As per The India Employment Report 2024, authors note that the?proportion of India’s working-age population (aged 15–59) increased from 61% in 2011 to 64% in 2021 and is projected to reach 65% in 2036.

About 7-8 million young people are added each year to the labour force. “In 2022, the share of unemployed youth in the total unemployed population was 82.9%,”.

Why is unemployment high among the youth?

Education-Industry Gap: There is often a mismatch between the skills taught in educational institutions and those required by industries. Many graduates may lack practical skills and industry-specific knowledge.

Quality of Education: While India has a large number of educational institutions, the quality of education can be inconsistent. Some institutions may not provide the level of training and skill development needed to meet industry standards.

Outdated Curriculum: The curriculum in many educational institutions may not keep pace with the rapid changes in technology and industry practices, leading to graduates who are not up-to-date with current trends and tools.

Conclusion: Bridging the Skills Gap in India: A Collective Effort

The shortage of skilled manpower in India is a multifaceted challenge that requires coordinated efforts from educational institutions, industries, and policymakers. Bridging the education-industry gap, enhancing the quality of education, and promoting vocational training are crucial steps.

Key areas to focus on, apart from software domains, include Manufacturing, Green Skills, Drone Technology, 3D printing and Space Technologies etc. India can develop a workforce that meets the evolving demands of its growing economy.

Together, we can turn the tide and transform the landscape of skilled manpower in India, paving the way for a prosperous future.

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