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Livelihoods_ Employment and Sustainable Development An initiative

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					 Employability of the Labor-Force: Developing Skills
             Investing in Dynamic Human Capital


              Dr. R.C. Datta,
              Professor & Dean
              School of Management and Labour Studies




                Tata Institute of Social Sciences
                             Mumbai

R.C. Datta                                              1
                            Research Team
                                        Prof. R.C. Datta

                                        Dr. Bino Paul

                                        Dr. Sony Pellissery

                                        Ms. Milly Sil

                                        Ms. Shaoni Shabnam

                                        Mr. J. Pathan
I would like to thank the earlier team who have worked with me for Employability & Livelihood Project
sponsored by CII. I would also like to thank Government officials, employers from the private sector and
various ITI officers.

R.C. Datta                                                                                           2
                           Objectives of the study

  i.         To explore and identify emerging economic activities and
             employment potential delineated by sectors, regions, gender and
             social groups;



  ii.        To assess the nature of work and extent of skills required for
             EMPLOYABILITY in the identified key sectors of the economy;



  iii.       To recommend and suggest potential growth areas and the nature of
             skill up-gradation required for the same.




R.C. Datta                                                                       3
             Locations for the study

Six districts in Maharashtra selected on the basis of
detailed discussions with the CII
                Nashik
                Nagpur
                Aurangabad
                Kolhapur
                Pune
                Ahmednagar
                MUMBAI


R.C. Datta                                          4
                     Rationale for the study

     India‟s Economic Growth of 7–8 per cent per annum in the last
      few years has undoubtedly been commendable

     Ironically, Livelihood is still under pressure

     Economic growth per se does not ensure its benefits to trickle
      down to the masses

     Growth with distribution is essential to prevent economic and
      social exclusion




Urgent need to address EMPLOYMENT and LIVELIHOODS issues


    R.C. Datta                                                         5
         Social Sector Expenditures in Maharashtra:
                      Whither the State?
   Fiscal stringency: Overall reduction in Total government
    expenditures since the 1990s

   Declining Social Sector Expenditures (incl. education & rural
    development)- as percentage of State Income and Total government
    expenditures

   Reduction in both plan and non-plan expenditures in the IX Plan
    (2001 onwards) particularly in the Social Sectors

   Expenditures directed towards Economic Services (mainly
    completion of major and minor irrigation projects)

   Programme driven approach for most social sectors

   Policies lack comprehensiveness

R.C. Datta                                                            6
                     Phases of the study

      Phase I
       Review of secondary data from sources such as CSO, NSSO,
        Annual Survey of Industries, to derive information about areas
        and sectors of growth.

      Phase II
       Primary survey in the districts to identify linkages between
        growth areas, skill requirements, and skills available, from
        employers, education and training providers, and employees.




R.C. Datta                                                               7
                   Phase I




             Secondary Data Analysis



R.C. Datta                             8
  Sectoral Composition to Total State Income (GSDP)


        Sector          1993-94          1999-2000            2003-04


Agriculture               19.5              14.89              12.55


Industry                  33.43             34.56              30.22


Services                  47.07             50.56              57.23

 Source: National Accounts Statistics (2005), EPW Research Foundation and
 Economic Survey of Maharashtra, 2004-05


 R.C. Datta                                                                 9
                 Phase II




             Primary Data Analysis



R.C. Datta                           10
             Emerging Employment Areas… New
                       Economy!!!
      Physical Infrastructure Development
      Human Capabilities:
       Basic Education + Human Capital + Social Skills

Upcoming Growth Sectors:
a) Horticulture
b) Banking & insurance
c) IT & ITES
d) Retail

                …….Significantly low EMPLOYABILITY due to skill-gaps




R.C. Datta                                                        11
             Declining Job Opportunities in Old Economy

       Physical Capital Intensity (eg. CNC technology)
       Human Capital Intensity (eg. Multi-skilling)

Existing Growing Sectors:
   Food Processing
   Automobile
   Construction
   Petroleum & Petro-Chemical Products


                            ………. Low employment elasticities

R.C. Datta                                                12
             Status of Employment in Old Economy




Potentially  Growing Sectors have been showing low labour absorption
in relation to rate of growth of output

Despite  reasonable growth in output certain sectors have shown
decline in absolute number of employees (e.g. Transport Equipments)

Leading to what has been termed as „jobless growth‟ in the
organised manufacturing sector




R.C. Datta                                                            13
             Breaking Through the Jobless Growth




                 EMPLOYABILITY
              May Show the Way……



R.C. Datta                                         14
                  What is Employability?




Employability is the capacity developed in an individual by the
society, to enable him/her to get employment and sustain in the
labour market by adapting to its emerging demands.




R.C. Datta                                                        15
                       EMPLOYABILITY




„An individual‟s ability to gain initial employment, maintain
employment by acquiring dynamic human capital attractive to a
range of employers.‟




R.C. Datta                                                      16
  Employability is, „Labour Force trained in activities for which
  there will be future demand for labour. This would mean, if the
  future demand for labour is going to be in activities which
  requires much more skills, much more education, much more
  specific training and so on, are we providing them? ……...
  perhaps, we are not‟

                                 (T N Srinivasan, B L April 23, 2007)




R.C. Datta                                                              17
We do not yet even have a vocabulary, much less any systematic
data, to help us get our arms around the coming labour market
reality.



                              (Alan S Blinder, December, 2005)




R.C. Datta                                                       18
               Conceptualizing Employability

    Individual                   Personal




                                                                        Market
                                                     External
     Factors                  Circumstances          Factors


                               Access to Resources




                             “Potential Employee”


    Training Institute
                                                      Labor Market
             Such as:
                                                     Information Cell
    Industrial Training
 Institute; Service Sector
     Training Institute


R.C. Datta                   EMPLOYABILITY                         19
                       EMPLOYABILITY

    Competency- Employability based Approach in Education


    •        Skills and Know-how related to subject
    •        Attitudes and personal skills
    •        Soft-skills




R.C. Datta                                                  20
                       EMPLOYABILITY

     Drivers :

            Technological innovation in products and production
             processes
            Significance of blend of academics and live cases in the
             classroom
            Acquisition of dynamic Human Capital in the form of
             adaptive training and work related learning.




R.C. Datta                                                              21
                      EMPLOYABILITY


     Typical Supply-side driven education systems are getting
      replaced by demand-led work-output related models.

     Life-long learning.




R.C. Datta                                                       22
                         EMPLOYABILITY




        Learning outcomes and development of competency
         experientially independent of the acquisition route.

        Education + Vocational Training + Experiential Learning




    R.C. Datta                                                     23
             Employability is a blend of
                Personal attributes

                Generic or soft skills

                Practical adaptability skills

                Life-long Learning




R.C. Datta                                       24
                             SKILL
Ability or Competence, either inherent or acquired, and which can be
repeatedly performed.


Skills can be demonstrated, learned, taught, trained or coached but
can only be acquired by performing them.


Skills can only be improved through repetition and practice.




                                                     (Simpson 2004)

R.C. Datta                                                       25
                                   SKILLS


              Basic Skills                     Key Skills (Soft Skills)
              • Literacy                       • Communication
              • Numeracy (Hard Skills)         • Initiative
                                               • Working in team
                                               • Problem Solving




                                                    Personal and Inter-personal

                               Typically Employer‟s Focus
                                         Outcome

„I want my employees to come on time, take initiative, be good with
customers and add value.‟
 R.C. Datta                                                                  26
                      Employability and Investment
                       in Dynamic Human Capital

                                        Member of self directed work team
      Employability




                                      Perform multiple roles


                                      Behavioral and Social Competencies


                                      Functionally flexible



                                       Access to Work




R.C. Datta                            Dynamic Human Capital             27
             HOW ABOUT EMPLOYERS‟ ABILITY ?




R.C. Datta                                    28
                 What are employers looking for?

     Industry is seeking highly skilled workforce who has new ways of
      thinking, managing, and working.

     There is a need for ongoing skill development in employees to take
      account of emerging occupations and changing skill requirements
      due to technological changes and workplace processes.

     Job-specific technical skills in a given field no longer sufficient as
      employers generate inter-reliant jobs, with emphasis on multi-skilling
      and multi-tasking.

     Youth need to possess set of personal attributes and social skills to
      prepare them for both employment and employability in the context of
      challenges that the Indian industry is facing.




    R.C. Datta                                                           29
What are employers looking for? Contd…..

   Employers are disappointed with young job applicants because of
    non- technical, generic employability skills.

   Irrespective of sector, employers want entry-level employees to
    have some generic employability skills such as:

            Affective skills or personal qualities, e.g. ability to work in
             teams, the right attitude towards work, following instructions,
             dependability and responsibility, positive work ethic, punctuality
             and regularity, and

            Basic skills such as communication and presentation skills.




R.C. Datta                                                                   30
                What is industry doing?
   If employability issues are to be seriously considered by industry,
    then it has to have wider ramifications on the recruitment and
    training of the workforce.

   There is a lack of commitment on the part of many employers to
    get workers with some training and then train them as per the
    specifications of the job that requires to be done.

   Employers take shortcuts in recruitment practices, use
    contractual/untrained workers to fill shortfall rather than employ
    permanent workers with prior training.

   There is a desire to obtain workers who are “ready-made”, and can
    immediately adapt to the challenges of the workforce per force.




R.C. Datta                                                                31
             Advantages in Developing Workforce
                       Employability:

   Companies investing in developing workforce employability
    through systematic training and development develop:


                an upwardly mobile,
                safer, and
                more productive workforce.




R.C. Datta                                                      32
      A Relative Disconnect between the Suppliers and
             Demanders in the Labour Market

   Emergence of a significant lag in developing multi-skilled workforce
    and in recognising the importance of social skills in the workforce



   A general lack of resources and academic autonomy to adapt to
    the changing local conditions



   Relative rigidity in the supply-side (such as the training institution-
    ITIs) in adapting the curriculum to incorporate employer requirements



R.C. Datta                                                                    33
     A Relative Disconnect between the Suppliers and
            Demanders in the Labour Market

     Lack of initiative and interaction on the part of employers to
      communicate with training institutions about the kind of skill-sets
      needed & relatively poor perception about the quality of
      training institutions

     Inadequate and inconsistent industry representation in the
      bodies like NCVT, STVT

     Typically, employers demand „ready-made‟ employees requiring
      least investment towards their training

     Myopia of employers to incentivise workplace for competitive
      skills



R.C. Datta                                                              34
         …steps to bridge EMPLOYABILITY GAPS



        Three main recommendations to enhance the quality, utility and
       effectiveness of youth entering the workforce:

              Setting up of Labour Market Information Cell,

              Developing Service Training Institutes,

              Restructuring Vocational Training Institutes




R.C. Datta                                                               35
               Labour Market Information Cell:
    Labour Market Information Cell (LMIC) will help

            Address information asymmetries in the labour market

            Bridge employability gaps thro the matching skills in demand and
             supply

   LMIC will coordinate between all stakeholders to increase synergies
    –

            the potential employee,

            the employer, and

            Human capital suppliers


R.C. Datta                                                                 36
             Recommendations

                Future Directions




R.C. Datta                          37
             …steps to bridge EMPLOYABILITY GAPS

      Three main recommendations to enhance the quality, utility and
       effectiveness of youth entering the workforce:


              Setting up of Labour Market Information Cell,


              Developing Service Training Institutes,


              Restructuring Vocational Training Institutes




R.C. Datta                                                             38
             Labour Market Information Cell


      Labour Market Information Cell (LMIC) will help
           Address information asymmetries in the labour market

           Bridge employability gaps thro the matching skills in demand
            and supply

     LMIC will coordinate between all stakeholders to increase synergies
      –
           the potential employee,

           the employer, and

           Human capital suppliers




R.C. Datta                                                             39
                          Service Training Institute
   Service Training Institute (STI) derives importance in the current context
    of the growth and development of the tertiary service sector in the Indian
    economy.

   Since this sector is highly dependent on human contact, either voice-based
    or in person, employers from this sector are looking for specific “soft
    skills” such as
                customer service,
                communication - verbal and written,
                interpersonal skills and
                sales skills.

   These are skills in demand for services such as Retail, insurance, and
    Business Process Outsourcing.

   Setting up of STI becomes increasingly important because training for such
    soft skills are not currently being imparted in a systematic manner.


R.C. Datta                                                                   40
         Restructuring Vocational Training Institutes
   Restructuring of Vocational Training Institutes such as the
    Industrial Training Institutes (ITI) with autonomy to revise their
    curriculum keeping in mind emerging occupations and changing
    nature of work.

   Kind of training offered in ITIs should be related to the developmental
    needs of the area in which they are located.

   Restructuring of ITIs to function more effectively requires
    collaboration between

                government policy makers,

                the industry and

                the trainers

R.C. Datta                                                               41
   Educators should help potential workers acquire generic
    employability skills that are becoming more important for
    employers in the present day.



   Employers should communicate to the educators and trainers
    what specific skills they are looking for.



   Employers should collaborate actively with the educators and
    trainers to provide learning experiences where employability
    skills are acquired by the potential employees.



R.C. Datta                                                         42
             http://atlmri.googlepages.com




R.C. Datta                                   43
R.C. Datta   44

				
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