Is India really struggling with an unskilled workforce?

India is the second largest labour market with over 500 million employed individuals, second only to China. According to a 2020 Human Development Report, however, only one in five Indians is considered to be skilled. As the tech job market struggles with turbulence, the focus has shifted to skills over degrees or work experience. So much so, that most companies have their own training and skilling programmes to ensure that new talent is ready to contribute to the company immediately.

Independent skilling, however, continues to be the trend with most job seekers, whether freshers or experienced. A report by Great Learning highlighted that 25% of Indian professionals were upskilled as they wanted to advance their careers within their present organization, whereas 42% upskilled in order to acquire a better job. The report also indicated that 24% of Indians pursued upskilling for their personal desire to learn.

So, the question – Is unskilled labour our economy’s biggest obstacle? – will need to be looked at through a different lens.

India is the fastest growing economy with over 900 million people in the working-age population. Therefore, skill-based education and outcome-driven learning can lead to a paradigm shift in improving the employability of young Indians. The government is collaborating with edtech platforms and private sector companies to participate in this shift and ensure that India is not left trailing behind. Initiatives like ‘The Skill India Mission’ and the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), have been helpful in introducing skill building as an important part of the job market in India.

Online skilling and microlearning platforms have also grown in number to fill in the skill gap to help companies find employees who can specifically cater to their goals. The focus is not just on what degree a person holds but what skills – both technical and soft skills – do they bring to the table. Being ‘industry-ready’, or being a ready fit for a company, is another key criterion that is being added through skilling platforms, which cater to students from various backgrounds, thus increasing accessibility and leveling the playing field.

India isn’t facing a problem of unskilled labour but a problem of mismatch in demand and supply. In the past two years alone, most tech companies have partnered with skilling platforms to ensure they hire and retain a workforce that is up-to-date on its technical knowledge and constantly upskilling in order to improve employee experience as well.

Correcting the mismatch through new programmes and policies will drive India to becoming a knowledge-based, skilled economy.