Survey on Emerging Skills - Directorate General of Employment ...

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Feb 20, 2013 (4 years and 3 months ago)

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FICCI Survey on
Emerging Skill
Shortages in the Indian
Industry

By

Mr Rajan Kohli ,

Deputy Secretary General,
FICCI

Presentation for National
Conference on Skill
Building through Public
Private Partnership

5
-
6 October 2007

Content



Context


FICCI Survey on Emerging skill shortages in
the Indian Industry


Skill Shortages : Analysis of Some Major
Sectors


Surveys of ITI’s


Suggestions


Context


Employment Scenario in India

(62nd Round of NSSO)










An irony : On One Hand there is vast
unemployment/underemployment, on the other there is
Manpower shortage in Industry at different levels.

S.No

ITEM

1999
-
2000

2004
-
2005

1

Total Labour Force

406.0

469.9

2

Total Employment

397.0

459.1

3

Open Employment

9.0

10.8

4

Unemployment Rate (As % age to
the Total Labour Force)

2.2%

2.3%

5

Employment in Organised sector

28.0

26.3

6

Employment in Unorganized
sector

369.0

432.8


FICCI SURVEY ON EMERGING SKILL SHORTAGES IN
INDUSTRY


To get an impressionistic picture of the trades and professions,
across different industries, where the demand supply gaps are huge
and rising, FICCI conducted a quick survey.



Based on the feedback received from individual companies as
well as industry associations FICCI has identified 20 sectors, which
deserve immediate attention in terms of promoting skill
development and meeting industry requirement.




Emerging skill shortages in the Indian industry



Analysis of some major sectors

BIOTECHNOLOGY

SKILL GAP AREAS :

Scientists & Researchers : 80% Shortage

Production staff: 18% Shortage

Legal and Regulatory experts: 22%


Industry Comments




Companies have reported that on an average they have to spend Rs 2
-

6 lacs per person per
year on the training of candidates possessing Masters Degree in Biotechnology, Organic
Chemistry / Biology.



According to industry representatives the government should put a lot of emphasis on
increasing qualified professionals (particularly doctorates) in the following areas


molecular
biology, biochemistry, biotechnology, assay development


biology, medicinal chemistry,
analytical chemistry, synthetic organic chemistry.

FOOD PROCESSING

SKILL GAP AREAS :


a) Trades: Refrigeration mechanics,Refrigeration plant operators, Electricians, Fitters : 65%


b) Professions: Production managers or supervisors,R&D, Product development
technologists to assist in designing, Researching & developing new food products, Food
engineers, Food safety and quality assurance, Food microbiologists,


Quality assurance
scientists,Risk management professionals, Supply chain, Regulatory and legal
experts,Technical support : Shortage to the tune of almost 60
-
70%

INDUSTRY COMMENTS/SUGGESTIONS



Shortage of certificate holders and persons trained in short term courses.




Poor infrastructure at existing organizations like FPTC, ITIs, NCDC, NABARD etc., needs to
be strengthened




No specialized institutes for R&D and for imparting specialized skills. E.g.. Food Grain Milling


HEALTH

SKILL GAP AREAS :




a) Doctors : No in 2005


592,215 , Addition to the pool every year 22,000, Projected
demand in 2012 : 1,200,000


b) Nurses: No in 2005


929,826, Projected Demand in 2012

1,109,826


c) Paramedics, Radiographers, Physiotherapists, Radio
-
physicists, ECG technicians,


OT
technicians and Audiometrists


INDUSTRY COMMENTS/SUGGESTIONS

Large Skill Gaps expected in next 5 years : Basic cardiac life support,
advanced cardiac life support and advanced trauma life support


Skill Gaps expected in Paramedic areas : Radiographers, physiotherapists,
radiophysicists, ECG technicians, OT technicians and audiometrists


EDUCATION

SKILL GAP AREAS
:
Faculty (particularly engineering and management), Non


teaching positions, Library staff, Technical staff

INDUSTRY COMMENTS/SUGGESTIONS

Central universities : Acute shortage of faculty : Especially in disciplines like
engineering, management, economics, computer science and IT: 25% to 40%.

Even the non
-
teaching positions are difficult to fill.






Private Universities : Acute shortage of faculty members in disciplines like
engineering, management, computer science, electronics & communications, etc.
The shortage of faculty members in the aforementioned fields ranges from 33% to
75%.


LEVEL

SANCTIONED

FILLED

Non Teaching Staff

1824

1437

Library Staff

305

188

Technical Staff

989

759

TEXTILES


SKILL GAP AREAS :

a)
Trades : Sewing machine operators, Cutters,Testers, sorters,
samplers,Packaging and filling machine operators, Textile machine bleaching
and dyeing machine operators,Pressers


a)
Professions : Textile engineers (machinery design), Production engineers,
Extruding and forming machine setters, Fashion designers, CAD designers,
Management professionals, Retail sales professionals

INDUSTRY COMMENTS/SUGGESTIONS

About one million new jobs would be created in the textiles sector over
the next few years with a projected investment of over 90,000 crore.



BANKING AND FINANCE


SKILL GAP AREAS :
Risk management professionals, IT


professionals, security
management, delivery channel,


Forex / Treasury management professionals, Credit operations
professionals, Insurance professionals, Financial analysts, Wealth managers

INDUSTRY COMMENTS/SUGGESTIONS


Responses received from companies from the banking and finance sector show that
in the year 2006 companies faced an acute shortage in several professional categories



Risk managers


Shortage to the extent of 90%


IT professionals


Shortage to the extent of 65%


Treasury managers

Shortage to the extent of 50%


Credit operations professionals

Shortage to the extent of 75%


Financial analysts


Shortage to the extent of 80%


Wealth managers


Shortage to the extent of 80%


Economic and Planning analysts


Shortage to the extent of 80%

RETAIL

SKILL GAP AREAS :
Customer care and sales executives, Category / line / floor
managers, Merchandisers, Visual merchandisers,Store managers

INDUSTRY COMMENTS/SUGGESTIONS :


Responses received from companies from the sector show that in the year 2006 companies
faced shortage in the following professional categories




Operations / shop floor executives


Shortage to the extent of 20%


Visual merchandisers


Shortage to the extent of 50%


Purchase managers / Merchandisers


Shortage to the extent of 30%




Old

syllabi

being

taught

and

continuing

for

last

many

years
-
No

takers

for

these

skills

in

outdated

courses




Mismatch

between

skill

produced

by

training

institutions

and

skills

required

by

Industry

due

to

poor

industry

linkages
.




Vocational

training

institutions

are

not

adequate

in

number

to

train

the

new

entrants

to

the

labour

market
.

Against

12
.
8

million,

new

entrants

every

year

there

is

an

institutional

capacity

to

train

only

3

million
.



WHY SKILL SHORTAGES :



While on one hand, the level of educational
attainment of the existing work force is very low, on
the other hand the educated without professional
skills constitute 69% of the total unemployed.




Not enough employment market surveys,
counselling services, and employment exchanges
working on old patterns discharging merely referral
functions



Training institutions are not well equipped in
terms of faculty and training infrastructure.

FICCI Survey of ITIs

Context :
FICCI did a survey of 100 ITIs to determine
whether they are equipped to cater to the vocational
training needs of India



Survey Findings:

About 35% of ITIs reported under utilisation of seats


Basic industrial trades offered by these ITIs had no
market demand


Trades offered by participating ITIs varied between
2
-

38 as against 110 government approved trades


82% of ITIs had placement services

FICCI Survey of ITIs Contd..


Non availability of Numerically Controlled (NC)
& Computerized Numerically Controlled
machines (CNC)
-

a serious deficiency


Inadequate supplies of raw material
-

only 6% of
expenses allocated


Shortage of staff
-

89% ITIs had staff strength less
than the sanctioned strength


70% of ITIs did not have allocated budget for staff
training & development


28% of the ITIs reported no industry interface


32% ITIs reported lack of appropriate supervision


FICCI Survey of ITIs Contd..

Average Allocation of Budget by the ITIs

Average. Proportion of
budget allocation in
the year 2003
-
04

Salary

77%

Building Repair

7%

Buying
equipments/machines

5%

Raw materials

6%

Staff Training &
Development

2%

Other major expenses

6%

What can be done :

FICCI’s Suggestions



Public Private partnership scheme to revamp ITI’s should start at
the earliest, removing all glitches, including finalization of MoU’s.



The State Government should inform the partner industry about the
ITI’s allocated at the earliest possible. In this context, we have heard
only from the Government of Maharashtra.



Skill
-

Building initiative to be given industry status.


NCVT to be restructured with setting up State arms.


Industry’s role as short term or long term skill provider needs to be
recognized and the process should be incentivised.


FICCI’s Suggestions contd.


Skill certification should be broad based, identifying the
role of the private sector.



Short term or modular skill courses to be given priority
keeping in view the size of the country and the number of
people working in the informal sector.



A separate directorate under Ministry of Labour should be
created to promote short
-
term modular courses.



THANK YOU !!