India's Skill Crisis

Youth unemployability is a bigger crisis than unemployment

53% of employed youth suffer some degree of skill deprivation while only 8% of youth are unemployed

57% of India's youth suffer some degree of un-employability

The 82.5 million unemployable youth fall in three skill repair buckets:

Last mile repair	(0.5 yrs)	5.3 million
Interventional repair	(0.5-1 yr)	21.9 million
Structural repair	(1-2 yrs)	55.4 million

Repairing this skill deficit needs Rs 490,000 crore over two years. Current budgets cover 25% of this but only allocating more money won't solve the problem

The Poor HRD Regime

Demand/ Supply mismatch; 90% of employment opportunities require vocational skills but 90% of our college/ school output has bookish knowledge

High dropout rates (57% by Grade 8) are incentivized by the low returns of education; 75% of school finishers make less than Rs 50,000 per year

Poor quality of skills/ education show up in low incomes rather than unemployment; 45% of graduates makes less than Rs 75,000 per year

The Urgency

Unviable Agriculture; 96% of farm households have less than 2 hectares. 70% of our population and 56% of our workforce produce 18% of GDP

Demographics; 300 million youth will enter the labor force by 2025. 25% of the world's workers in the next four years will be Indian

Our 50% self-employment does not reflect entrepreneurship but our failure to create non-farm jobs and skills

The skill deficit hurts more than the infrastructure deficit because it sabotages equality of opportunity and amplifies inequality while poor infrastructure maintains inequality (it hits rich and poor equally)

The increasing returns to skills and skill deficit are reflected in the 10% increase in inequality (Gini coefficient) since 1994

The Three problems

Matching ;	Connecting Supply to Demand
Interventional repair :	Repairing Supply to Demand
Pipeline ;	Preparing Supply to Demand

The Solution

Innovation at the intersection of employment/ employability, assessment/ training and matching/ mismatch

As the Indian economy expands, there is an acute shortage of skilled people. Teamlease and IIJT are now looking beyond the initial phase of lamentation of the problem of "skills crisis" to proposing specific, scalable and effective solutions to the problem.

By working closely with the State & Central Governments and Ministries, we aim to reach out to job seekers across the country and provide six basic services



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