The Union Minister launched a new report titled “Skills for the Future: Transforming India’s Workforce Landscape” developed by Institute for Competitiveness (IFC).

Key Findings from the Report

India’s Skills Landscape

• 88% of India’s workforce is engaged in low-competency occupations (Skill Level 1 & 2).
• Only 10–12% are in high-competency roles, indicating a significant skills gap (Skill Level 3 & 4).
• Only 9.76% of the population has education beyond the secondary level; 52% are at or below primary level.

Skill Mismatch Crisis

• A significant mismatch exists between educational qualifications and occupational requirements.
• Skill Level 3 (Graduates) showed the lowest match (8.25%), while Skill Level 2 (Secondary Education) had the highest match (72.18%).
• Over 50% of graduates (Educational Skill Level 3) are employed in jobs below their qualification (e.g., shopkeepers, operators).
• A smaller but concerning group holds jobs that exceed their education level, largely due to informal upskilling or experience.
• Overqualification is more prevalent than under qualification.

TVET (Technical and Vocational Education and Training) Performance

• TVET is meant to bridge the gap between education and labor market requirements.
• Just 4.5% of the workforce has received formal vocational training.
• Most TVET programs are concentrated in Skill Level 2, with limited alignment to current industry needs.
• Five sectors—Electronics, IT-ITeS, Textiles and Apparel, Healthcare and Life Sciences, and Beauty and Wellness—constitute over 66% of vocational training enrollments.

Significant inter-state variations

• States like Kerala and Chandigarh lead in Skill 3 and 4 occupations.
• States like Bihar, UP, and Madhya Pradesh have over 90% of their workforce in low-skill jobs.
• High-skill jobs are clustered in a few urban regions, highlighting a rural-urban divide in skilling and job quality.

Economic Implications

• 46% of the workforce earns below ₹1 lakh/year.
• Less than 5% earn more than ₹4 lakh/year.

Key Challenges Associated with Skills Landscape in India

• Skill Mismatch Crisis
• • Workers are both overqualified (especially graduates in low-skill jobs) and underqualified (less educated individuals in high-skill roles).
  • This mismatch leads to economic inefficiencies, wage stagnation, and poor workforce productivity.
• Underperformance of TVET: 
  • TVET is still under-recognized, under-resourced, and poorly integrated with general education.
  • Certification rates and course completion vary widely by state and sector.
• Rural-Urban Divide and Regional Inequality
  • Access to skilling opportunities is significantly lower in rural areas.
  • Migration pressures, youth unemployment, and growing inter-state disparities persist.
• Prevalence of Informal Employment: A significant proportion of the workforce is in informal, low-paying jobs without social security, mobility, or dignity of work.
• Data Deficiencies: No standardized, national-level Skill Gap Analysis Survey.
  • Inadequate tracking, especially for women, SC/STs, and rural youth.

Key Recommendations

• Enhance TVET Relevance and Quality: Align TVET curricula with emerging sectors such as Artificial Intelligence, Renewable Energy etc.
  • Improve training standards, include employer participation, and introduce course feedback mechanisms from trainees.
• Education-Employment Linkage: 
  • Mandate Industry Linkages: Industries should be encouraged or mandated to hire PMKVY-certified individuals.
  • Introduce Feedback Mechanisms: Collect post-training feedback from trainees to evaluate program quality and utility.
• Targeted State-Level Interventions:
  • Encourage state-specific skill roadmaps focusing on regional strengths and industrial clusters.
  • States must integrate skill missions with employment exchanges and higher education institutions.
• Update Classification and Credit Systems:
  • Modernize the National Classification of Occupations (NCO) to include new and hybrid job roles.
  • Develop a National Credit Repository that integrates formal education, skilling credentials, and work experience.

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