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88% of India's workforce in low-competency occupations: IFC Report - The Economic Times

Published 6 hours ago2 minute read
88% of India’s workforce in low-competency occupations: IFC Report
By , ET Bureau
for over 66% of vocational training, the Institute for Competitiveness (IFC) said in its report, suggesting need for targeted policy interventions to develop a resilient and future-ready workforce. As per the report, IT and ITeS, textile and apparel, electronics, healthcare and life sciences, and beauty and wellness are the five sectors which accounts for 66% of the country’s overall vocational training on the basis of periodic labour force survey (PLFS) data.

The report further said that only 9.76% of the population has completed education beyond the secondary level, whereas more than 52% remain at or below the primary level.

The report ‘Skills for the Future: Transforming India’s Workforce Landscape’, released by Jayant Chaudhary, the minister of state (independent charge) for skill development and entrepreneurship on Friday, recommended a dedicated, standardized data collection system to generate estimates about skill requirements, enable targeted evidence-based reforms and policies.

“Further the industries need to be incentivised to recruit from skill-certified talent pools and take accountability for creating market-aligned training, besides offering them higher wages,” it added.

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According to the report, a major limitation hindering effective policy design and impact evaluation is the absence of comprehensive, disaggregated, and time-series data on vocational education and skill development. “To meaningfully assess the outcomes of skill development initiatives across different population groups, regions, and sectors, it is critical to institutionalize a dedicated and standardized system of skill data collection,” it said. “This system should capture key indicators such as the type (formal or informal, public or private); duration, and quality of training, employment outcomes and wage differentials post-training; uptake and completion rates; and employer feedback on workforce preparedness,” it added.

The report further said that to bridge the skill gap and align workforce capabilities with evolving industry demands, there is an urgent need to institutionalize a dedicated, skill-based survey.

“This survey needs to be conducted at regular intervals and must go beyond conventional metrics to capture detailed information on skilling trends, including the types of courses individuals are enrolling in, the nature of upskilling activities, and their alignment with employment outcomes,” it suggested.

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