Friday, February 12, 2016

There is a growing mismatch between skills and occupations—Are there any ways to close the gaps?

As India grows into a knowledge economy increasing the use of technology in manufacturing and service industries, the emerging gaps at the level of tertiary education are seen as a major constraint. The current education system does not adequately focus on skills which can improve employability, and large section of labour possesses outdated skills.

More recently tertiary education, above secondary schooling and higher education (HE), has come into focus within the debate of the ‘demographic dividend’ that India is expected to reap. As India grows into a knowledge economy increasing use of technology in manufacturing and service industry, the emerging gaps at the level of tertiary education are seen as a major constraint.

An article from the Journal of Development Policy and Practice attempts to analyse skill gaps, and presents a detailed analysis of where persons with tertiary education are getting employed and whether recent years have seen a significant change in the absorption of workers with HE in different industry and occupation groups.

There has been a significant increase in the number of educational institutes, and thousands of graduates pass out every year. Also, recent times have seen the emergence and growth of sectors such as IT, life sciences and financial services. These sectors have become new avenues of white-collar employment among Indian youth. Although there seems no problem with demand and supply of graduates as far as the quantity aspect is concerned, in reality, all graduates are unable to get suitable employment. Simultaneously, the industry struggles to get suitable candidates.

The article also presents analysis on different types of skill mismatch such as Over-education, Skill mismatch in technical education, and Quality skill gap and also suggests certain policy interventions that encourage non-graduate technical and non-technical diploma/certificate holders that would help to close the skill gap.

To read more on Skill Gaps and Employability, Register here.

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