Trained but unemployed

News: In a recent interview, the Minister of State for Skill Development and Entrepreneurship said the government was spending ₹ 5,000 crore on skill development initiatives. Further, the government seeks to recruit one million people in 18 months

Background

The government announced the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), its first skill development initiative in 2015. It aimed to train as many people as possible and provide them with placements.

2nd Iteration

The government has shifted its focus to reskilling. It recognises the fast-changing need for skills in different sectors.

3rd Iteration

The government has changed the scheme from a supply-driven programme to a demand-driven model.

Overall Achievements

Certification Record

A combined analysis of three iterations shows that certifications varied from a low of 29.3% to 84.4% during this period.

Lakshadweep certified 79 of the 270 placed candidates. Rajasthan certified 9.26lakh of 11lakh candidates total enrolled candidates during this period.

Ten of the 36 states/UTs which includes, Uttar Pradesh, Haryana, Tamil Nadu and Maharashtra, had a certification rate higher than the national average of 76.5%.

Placement Records

Less than 10%: – Lakshadweep did not place a single candidate. Three states, including Maharashtra, placed less than a tenth of the certified candidates.

Between 10 and 30 per cent: 22 states recorded placement rates in this range, which includes Rajasthan, Uttar Pradesh, Haryana

placement rate of 30 per cent and above: Eleven states and UTs, like Punjab placed 39.6% of the total certified candidates. Ladakh provided placement for 54.1% of the certified candidates.

What are the issues?

The record of the flagship skill development programme, which aims to enhance the employment potential of Indians, has been poor.

It has been able to enrol 14.2 million people in the PMKVY since the start of the programme in 2015. However, the performance in terms of placements has not been remarkable which may be due to the pandemic and economic slowdown.

Around, three-fourths of the total enrolled have been certified. Further, a little over a fifth or 2.4 million have found placements.

Way Forward

The union government would still need to reorient its programme in order to improve its placement record.

Source: The post is based on an article “Trained but unemployed” published in the Business Standard on 17^th June 2022.