Role of Skill Development in Tackling Unemployment in India

Unemployment: The next big challenge facing India despite its economic growth is unemployment. Lopsided skills acquisition among job seekers and the employer’s needs have worsened this issue. Graduates are often worse off in terms of getting the ‘on the job skills’ necessary to fill existing work requirements. Even within industries that are devoid of sufficient manpower, one still sees widespread unemployment. Skill development, therefore, bridges this gap by equipping individuals with industry-relevant abilities that enhance their employability. Additionally, lifelong learning and continuous upskilling help professionals remain relevant in the job market that is constantly evolving. This blog delves into the multifaceted role of skill development in reducing unemployment in India.

This blog explores the multifaceted role of skill development in reducing unemployment in India.

1. Closing the Education-Employment Gap

The major cause of unemployment in India is the gap between formal education and industry needs. Traditional academic curricula are highly theoretical, making graduates unprepared for actual job roles. The skill development programs train people in practical skills in specific industries like IT, manufacturing, healthcare, and retail to make them job-ready. Reduced friction between the employment and demands of the market, the skill training programs decrease unemployment. In fact, one of the key initiatives undertaken by the government in the direction of filling this gap are Pradhan Mantri Kaushal Vikas Yojana (PMKVY) and Skill India, which focus on offering vocational training and certifications to millions of youth across the nation.

2. Entrepreneurial and Self-Employment Empowerment

Skill development doesn’t merely prepare an individual for employment but also uplifts entrepreneurship. Proper training in vocational skills such as carpentry, tailoring, digital marketing, and agriculture enables them to start their small businesses instead of waiting for job positions. Entrepreneurial skills lead to the formation of SMEs that are essential in the generation of employment in India. The Mudra Yojana is the only government scheme for the economically active groups who are highly skilled individuals to start their venture and even involve themselves in small ventures with financial support. This helps in reducing the burden on the job market, causes unemployment overall, but to a very slight percentage.

3. Improving Productivity and Economic Growth

There is a requirement of a skilled workforce for any economy. Workers contribute effectively to productivity and innovation only when they have the necessary skills. Increasing productivity leads to business growth, increased wages, and overall economic development. Countries with well-developed skill training frameworks like Germany and Japan have been experiencing sustainable economic growth based on the highly skilled workforce. India, by investing in skill development programs, can boost its manufacturing and service sectors, making it a competitive player in the global market. This, in turn, attracts foreign direct investment (FDI) and creates more job opportunities, further reducing unemployment.

4. Addressing the Issue of Underemployment

Another significant challenge in India is underemployment, where many people are employed but are working in jobs that do not match their qualifications or provide inadequate income. This is particularly evident in rural areas, where people are engaged in seasonal or low-paying jobs. Skill development initiatives can help these workers transition into more stable and higher-paying occupations. For example, training in digital literacy, financial services, or vocational trades empowers workers to access better employment opportunities. Upgrading the skill sets of individuals can enable them to climb up the employment ladder, thus reducing both unemployment and underemployment rates.

5. Empowering Women and Marginalized Communities

A well-designed skill development ecosystem promotes inclusivity by empowering women and marginalized groups. Many women in India face unemployment due to the lack of skills, social restrictions, and family obligations. Through training in flexible work opportunities like online freelancing, handicrafts, and beauty services, skill development programs enable women to join the workforce. Similarly, people from the economically weaker sections and rural areas benefit from skill training that helps them compete in the job market. Such initiatives taken by the government, for example, National Rural Livelihoods Mission (NRLM), focus on imparting skill training to marginalized groups, thus improving their employability and decreasing unemployment due to poverty.

6. Fulfilling Sectoral Requirement

Different industries demand different types of skills. Advances in technology at a faster rate have made their requirements diversified further. For example, IT sectors require skills like coding, artificial intelligence, and cybersecurity. For the construction industry, one would need masons, electricians, and plumbers. Industry-aligned skill training ensures that job seekers acquire competencies that are in high demand, making them more attractive to employers. Public-private partnerships (PPP) in skill development, where corporate entities collaborate with training institutions, can enhance the effectiveness of these programs. This alignment between skill training and industry demand significantly reduces structural unemployment, ensuring that the workforce remains relevant in a dynamic job market.

7. Reducing Migration for Employment

Overpopulation, strained infrastructure, and socio-economic disparities often result from the lack of job opportunities in rural areas, forcing people to migrate to urban centers. The problem can be solved by skill development programs tailored for rural employment, which create local employment opportunities. Training in agro-processing, rural tourism, dairy farming, and handicrafts helps individuals sustain themselves within their communities. Initiatives like Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) focus on developing the skills of rural youth and reducing the pressure of migration in the regions with better economic balances.

Conclusion..

Skill development is an essential tool for unemployment in India by filling the education-employment gap, encouraging entrepreneurship, increasing productivity, and ending underemployment. It also provides empowerment to the marginalized sections of society, workforce skills aligned to the needs of the industry, and reduces rural-to-urban migration. With the right policies and effective implementation, skill development can significantly contribute to India’s economic growth and employment generation. A sustained focus on skill enhancement will not only reduce unemployment but also transform India into a hub of skilled professionals, ready to meet the challenges of a rapidly evolving global job market.

NOTE:- For more skill related news guide visit Daily Liv India.

Images sourced from Freepik.