Transcript Skill Upgradation and Employment Generation by Vijay Kumar

Skill Upgradation and
Employment Generation
Dr.Vijay kumar,I.A.S.
Secretary, Municipal Admn
Govt of Andhra Pradesh, India
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India- A high growth economy
• Average annual growth from 1997
onwards at more than 7%
• From 2001 to 2011 average quarterly GDP
growth rate at 7.45% with a peak of 11.8%
during December 2002.
• GDP now stands at 1729 billion US dollars
• India now stands 4th in world in GDP
measured in Purchasing Power Parity
However………..
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Since the recording of high economic growths,
India’s poor have reduced in numbers by ten
percentage, but ….
• Still 22% of population are below poverty line.
• Of the 238 million poor, 68 million reside in
urban areas
• World Bank estimates
– Nearly 42% of India’s population lives on less than $
1.25 per day
– 3 out of every 4 Indians live on less than $ 2 per day,
This is because of
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A 9% Growth Economy needs Skilled Manpower
– the Economic Growth Challenge …
• Agriculture capacity to absorb
human resources limited
• 54% of population dependent on
agriculture, but contribution of
agriculture to GDP is around 18%
• Need for transition of labour from
farm to industry
• Incremental HR requirements till
2022 for top 15 sectors is
estimated to be 178 mn
• 68% of requirement is for skilled
entry-level-operators - education
levels of high school and below
KEY SECTORS
Incremental Human
Resources (million)
Building, Construction, Real
Estate
47.31
Auto & Auto Components
35.20
Organized Retail
17.34
Textiles
16.79
Tourism, Travel
12.86
Healthcare
12.70
Education & Skills
Development
5.80
IT & ITES
5.30
Leather
4.64
Gems & Jewellery
4.60
BFSI
4.49
Furniture & Furnishing
3.34
Electronics/ IT Hardware
3.22
Media & Entertainment
2.99
Source: NSDC Report on Human Resources and Skill
Requirements in various sectors (2022)
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There is Increase in Unemployment, Despite the
growth in jobs
• Employment generation over 1999–2000 to
2004–2005 grew on average by 2.8% per year)
• But, unemployment rate increased from 7.3% in
1999–2000 to 8.3% in 2004–2005, due to quicker
labor force growth
• This is because of the large number of people
being turned away from farm sector because of
the large scale hidden unemployment in this
sector towards other sectors.
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Further there is a large unemployment in
manufacturing sector
• According to the 2001 Census, 71% of the
urban workforce falls in the category of
“marginal workers.”
• Further there is a huge shortfall of skill
base for other workers in manufacturing
and service sector which leads to poor
remuneration
• And so these employed workers also
continue to be poor.
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The Urban Poor are Stuck in a Vicious Poverty Trap
Due to the Lack of Employability

Poverty
Uncertain
income / no
social security
No education
/school drop
out
Low /
unrecognised
skills
Most of the labour force is not
employable
− Only 6% of the urban
labour force aged 15-29
yrs have received any type
of vocational training
(NSS)
− 67% of the work force is
either illiterate or primary
school level educated,
making them ineligible for
formal vocational training
− Even those who have
skills have developed
them on the job and are
not formally certified,
precluding them from the
organised sector
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Thus Market-Relevant Skill Development is the only
Means to Break the Poverty Cycle
Marketrelevant Skill
Development
No
education
/school
Poverty drop out
Improved,
stable
Organised
standard
sector
of living
employment and
social security

Courses to be designed to meet the specific
needs of the industry, across sectors

Employment linkages with organised sector

Short-duration courses to improve accessibility
to trainees

No artificial educational requirement barriers

Formal certification

Employment in organised sector to form the
basis for financial inclusion and access to
social security
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The Government has set ambitious targets
for skill development in the country
National Skill Development Mission Target :
Skilling 500 million Indians by 2022
350 million
To be trained under grant
funding by Central
Government Ministries and
State Governments
150 million
To be trained by
NSDC through PPP
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The Planning Commission has identified 20 High Growth
Sectors for achieving socio-economic objectives….
Automobile & Autocomponents
2. Banking/Insurance & Finance
Services
3. Building & Construction
Industry
4. Chemicals & Pharmaceuticals
5. Construction Materials /
Building Hardware etc
6. Educational & Skill
Development Services
7. Electronics hardware
8. Food Processing / Cold Chain /
Refrigeration
9. Furniture & Furnishings
10. Gem & Jewelry
1.
11. Health
Care Services
12. ITES or Business (BPO) Process
Outsourcing
13. ITS or Software Services /
Products
14. Leather & Leather goods
15. Media, Entertainment,
Broadcasting, Content Creation &
Animation
16. Organized Retail
17. Real Estate Services
18. Textiles, Apparel & Garments
19. Tourism, Hospitality & Travel
Trade
20. Transportation Logistics,
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Warehousing & Packaging etc.
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State Socio-Economic Profile …
• Population : 84.6.million
• 67.66% literacy
• 31.0 million population in the age
group of 15-34
• BPL Population – 12.7 million
– 6.5 million rural & 6.2 million urban
• GSDP for 2010-11 at Constant
Prices is Rs. 3,710 billion.
• Annual Growth rate of GSDP at
constant prices: 8.89%
• Planned annual economic growth
rate of 9% during the 11th Five
Year Plan (2007-2012)
Key Sectors
Approx. Size
in AP Rs. Cr
Growth Rate
(CAGR)
Drugs and
Pharma
17,400
13.5%
IT and ITES
16,000
25%
Construction
15,000
15%
Healthcare
12,000
18%
Fin. Services
11,000
13.3%
Engineering
11,000
15%
Textiles
10,750
16%
Agro & Food
Processing
9,300
10%
Tourism
8,500
9.5%
Chemical and
Fertilizers
8,400
8%
Mines &
Minerals
7,800
11.5%
Paper
2,400
8%
560
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24%
Biotech
Quantitatively the Education & Skills Training Infrastructure
in the State is less than adequate
•
•
•
•
•
•
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Elementary, UPS & High Schools : 97,557
Govt. Industrial Training Institutes (ITI s): 131
Polytechnics (Govt. & Private) : 200
Junior Colleges: 4,264
Degree Colleges : 1,879
Engineering Colleges : 540
Medical Colleges : 50
Except in the Primary School and Engineering Colleges segment, the
number of institutions in all other segments is less than the
requirement
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The work force in A.P suffers from
• Chronic underemployment because of lack
of skills.
• Huge numbers of marginally employed in
services and manufacturing sector
• Huge unemployment in urban areas
because of migration to cities for better
oppurtunities
• Lack of oppurtunities for skill upgadation
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Vision and Mission of GoAP
Vision :- All urban poor families
To have:
improved quality of life
By accessing:
services from all organizations
Through:
own strong self reliant and self managed institutions.
Mission:To eliminate:
poverty, vulnerability and improve their quality of life
By providing:
Income generating and sustainable livelihoods.
Implementation mechanism
Mission for Elimination of Poverty in Municipal Areas. (MEPMA), an
independent organization working on a mission mode.
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Operational Area
URBAN AREAS IN THE STATE
Total
proposed
149
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Total Urban Popn. – 28.3 mn
Total Slums
- 7520
BPL Population
– 8.9mn
BPL Households – 1.99mn
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The strategy adopted
• Market scans conducted to identify the
opportunities available
• The skill set required for such job oppurtunites
identified
• Persons requiring the jobs identified
• Agencies for imparting training in these skills
identified
• Training modules designed and implemented to
these identified job seekers through identified
agencies
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High Growth Potential Industries/ Sectors in AP
High
Construction
Tourism
Employment
Potential
Financial
Services
IT & ITES
Textiles
Chemicals
&
Fertilizers
Health Care
Engineering
Drugs & Pharma
Biotech
Agro & Food
Processing
Paper
Mines &
Minerals
Low
Low
Competitive Positioning
High
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Employment generation – AP Interventions
• Skill Training for Employment Promotion
amongst Urban Poor( STEP-UP)
• Urban Self Employment Programme (USEP)
• Urban Women Self- help Programme (UWSP)
• Urban Wage Employment Programme (UWEP)
• Bank linkage – Micro finance to Community
based organizations
• Social infrastructure under Integrated Housing
and Slum Development Programme (IHSDP) of
JnNURM.
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Skill Training for Employment Promotion amongst Urban Poor( STEP-UP)
Identification of trainee
• Identifying the candidates through community based organizations.
Training:
• Imparting customized skill trainings based on Market scan.
Certification:
• Assessment of each trainee.
• Engaged reputed organizations from the industry.
Placement:
• Minimum salary assured to the placed candidates.
• Establishing industrial network.
Monitoring:
• Web based monitoring of selection of candidates, trainings, attendance and
placements. http://apmepma.gov.in
• Refresher trainings every 3 months for one year.
• One year tracking of the candidate.
Achievement:
• For the last 4 years trained 0.14 mn and placed 0.10 mn
• Approximate earnings around Rs.6.3 billion per year.
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Process of training
survey for
identifying
candidates for
training
Training
batches
Market scan of
companies
Identification of
skills required
Training courses
designed
Identification of
training
agencies
Establishment of
training centers
Training
placement
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Industry Manpower Requirement Form
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Unemployed Youth Registration Form
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Unemployed Youth Registration Form – Cont..
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Urban youth at learning and working
Hospitality
IT Enabled Services
Hotel Management
Accounting
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Trainees registering with the biometric machines
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Photo identity of the trainees
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Urban Self Employment Programme
(USEP)
Target :
Individual urban poor
Provision:
For setting up gainful self employment ventures
and Micro Enterprise.
Financial outlay:
up to Rs.200,000 per unit (including 25% subsidy)
Achievement :
34,005 units so far
Target (2011-12 ) :
10,000 units
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Urban Women Self Employment
Programme (UWSP)
Target:
Women self help groups (SHGs)
Aim:
Setting up of sustainable industrial/business units.
Objective:
To improve SHGs’ economic and managerial
capacities.
Financial outlay:
up to Rs.900,000 including 35% subsidy.
Target (2011-12):
2,500 units
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Urban Wage Employment Programme (UWEP)
To create:
Assets to the urban community and to provide employment to urban poor.
Assets :
Community Resource Centers,
Roads,
Drains,
water supply pipe lines
Objective:
Assets would be created and owned by the community.
Each work Comprising :
Not less than 40% of the labor component and balance will be material
component.
Financial Assistance:
Up to 51 lakhs per project
Achievement:
Construction of 352 Community Resource Centers
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Self Help Group - Bank linkage (Micro Finance)
Formation of Community Organisations
For socio economic development
Empowerment of women.
Inculcating thrift and credit among themselves.
Strength: 250,000 groups with 2.5 mn members
Corpus:
Rs 0.474 billion
Extending Bank Linkage:
To meet immediate financial needs
To start income generating activities
Bank loan ranging from Rs. 75000 to Rs. 500000 per SHG
Achievement:
Rs.5 billion so far and stood first in the country in SHG Bank Linkage.
Target for 2011-12:
Rs.1.6 billion
Total Financial Inclusion Model (TFI):
Providing assistance to the SHGs for debt swapping and to enhance their economic base.
Ultimate Aim:
To relieve them from the clutches of money lenders and private Micro financial institutions.
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Social infrastructure under IHSDP of
JnNURM
• As part of the housing projects, following social infrastructure
created to cater the needs of urban poor under Integrated Housing
and Slum Development Program (IHSDP).
-Livelihood centers
-Community halls
-Elementary schools
-Anganwadis (Play schools)
-Public Health centers
-Informal Markets
-Rickshaw sheds
-Multi functional utility centers.
• So far constructed 253 social infrastructural facility centers with an
amount of Rs.533 million
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Impact on urban poor
• Placement linked skill trainings
• Collectivization of Urban poor and Empowerment of
Women
• Self Managed Vibrant CBOs of urban poor to demand
the services.
• Transformation of urban society is catalyzing the growth
of the state GDP.
• The Public Private Partnership arrangement leveraging
the Resources - Finance, Trainee and know how – is a
novel and sustainable way of livelihood promotion.
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Way forward
• Increased numbers for training for
covering all urban poor for skill based
training
• Covering all urban households for gainful
employment and self employment
• Improving skill base at all levels for
improving productivity of work force
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Thank You
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