Skills for the Future Report:
Union Minister launched the “Skills for the Future: Transforming India’s Workforce Landscape” report by the Institute for Competitiveness.
Key Findings from the Report:
Skill Level Distribution (PLFS 2023–24):
- 88% of India’s workforce is in low-competency jobs (Skill Levels 1 & 2).
- Only 10–12% are in high-skill roles (Skill Levels 3 & 4).
- 9.76% of population has education beyond secondary level; 52.4% have only primary education.
Severe Skill Mismatch:
- Only 8.25% of graduates (Skill Level 3) work in matching roles.
- Over 50% of graduates are employed in lower-skill jobs (e.g., shopkeepers, operators).
- Overqualification is more prevalent than underqualification.
Low Penetration of TVET (Technical & Vocational Education & Training):
- Only 4.5% of the workforce has formal vocational training.
- TVET is often limited to Skill Level 2 roles; lacks alignment with modern industry needs.
Income Inequality by Skill Level:
- Skill Level 1 Avg. Wage: ₹98,835
- Skill Level 2 Avg. Wage: ₹1.26 lakh
- Skill Level 3 Avg. Wage: ₹2.81 lakh
- Skill Level 4 Avg. Wage: ₹3.94 lakh
- 46% of workforce earns less than ₹1 lakh annually.
Sectoral Skilling Concentration:
- Five sectors make up 66% of vocational enrolments: Electronics, IT/ITeS, Textiles & Apparel, Healthcare & Life Sciences, and Beauty & Wellness
Regional Skill Inequality:
- States like Bihar, Assam: 95% of workforce in low-skill roles.
- States like Kerala, Chandigarh have higher shares in Skill 3 & 4.
- Brain drains and migration are prominent in low-skill, low-growth regions.
Educational Transition Challenges:
- Transition from secondary to higher secondary level is weak: GER at higher secondary is only 57.56% (2021–22).
- GER at higher education remains below 30%, limiting pipeline to Skill Levels 3 and 4.
Sector-Specific Workforce Readiness Deficit:
- Many states show <5% workforce in Skill 3 roles.
- In IT, healthcare, and green jobs (EVs, biotech), India lacks skilled technicians, supervisors, and associate professionals.
