Need to prioritize developing skills relevant to the market

The Roman Empire existed in ancient Europe, as Charles Metcalfe, the envoy of the East India Company, once informed Maharaja Ranjit Singh. It ascended to ever-greater splendor until Rome as a whole was its own glory.

The Maharaja was captivated by the young man’s ideas and began to reflect on what made kingdoms and empires really immortal, how they might belong to their people, and what abilities those people held to manage economies rather than just armies. It is thus not surprising that people would not want to relocate to British-held territories in quest of modernity and conveniences since living circumstances were so excellent during his time.

The top workers were sent to nations in Europe to gain a variety of new skills. While military-related businesses were held by the state, industries like textiles, leather, wood, and paper were mostly privatized and had competitive pricing, quality, and processes. The young were upskilled and absorbed by the mixed economy at a period when countries were rapidly transitioning from peace to war. Lord Roberts described this kingdom as the “finest in Asia.”

Some thought is necessary in the current climate, when grandiose rhetoric of trillion-dollar economies and huge advancements tends to overshadow the reality of job losses and uncertainty.

The India Employment Report 2024, which was just issued by the Institute for Human Development (IHD) and the International Labour Organization (ILO), emphasizes how many young people in India are facing unemployment. According to the estimate, over 53% of Indians relied on self-employment as their main source of income in 2022. However, many of them may not have access to social security or even a decent salary due to this.

Between 2000 and 2022, the proportion of children with secondary or higher education more than doubled, rising from 35.2% to 65.7%. Over time, there has been a significant increase in young unemployment, with educated adolescents experiencing greater rates of joblessness. We refer to this as “educated unemployment.” We must consider the value of a college or university degree since an increasing number of people with MBAs are joining the workforce, despite a 55% decline in demand this year. Thirty-six percent of IIT Bombay graduates have not yet been placed on campus.

Employers want candidates with certain skill sets. Employability must be the main priority, rather than just degrees that need to be unlearned. The younger generation must recognize the highly sought-after new abilities, such as machine learning, artificial intelligence, sustainability, and other skills necessary in a digitalized environment.

One important finding from the analysis is that, between 2012 and 2012, the real salaries of regular workers either fell or stayed constant, while the wages of informal laborers showed a little rising trend. In 2022, up to 62% of unskilled informal laborers in agriculture and 70% of those in the construction industry across all of India did not get the daily minimum pay as required.

The paper highlights the fast emergence of tech-enabled platform economy jobs in the post-Covid era, which have changed the nature of labor engagement and compensation. Platform and gig employment have been growing in number, but they are essentially the continuation of unofficial labor with very little social security coverage.

For the sake of the young, a two-pronged strategy that improves employment stability and fosters the development of market-oriented skills is essential. We need to figure out how to make lives sustainable within this work and employment pattern, and skill development is the only way to make this possible. Jobs for gig workers may be found on a variety of internet sites.

In the midst of the explosive growth in the use of apps such as Zomato and Swiggy Instamart, we have to keep in mind that these applications will not only benefit delivery partners but also cloud kitchens, locally owned businesses, manufacturing, and new generation professionals. With more over 6.3 crore small and medium-sized businesses, this industry employs 11.3 crore people and makes up roughly 30% of the GDP.

A “Platform India initiative” to expedite platformization via handholding, finance assistance and incentives, skill development, and social financial inclusion along the lines of Startup India was proposed in Niti Aayog’s June 2022 policy brief on the platform economy.

There has to be a widespread campaign for more finance and social security. In conjunction with industry and social impact organizations, a strong network of modernized ITIs (industrial training institutions) that provide young people with skills relevant to the labor market has to be built.

Let’s examine Punjab in the modern era. The state Department of Finance issued the Punjab Economic Survey report in March 2023, stating that the services sector employed 38.46 percent of the workforce and increased at a rate of 7% in 2022–2023. Contractual employment is the main driver of this industry.

To generate additional employment, the manufacturing sector—which makes up 17% of India’s GDP—must be expanded. According to the IHD-ILO analysis, the reverse migration to agriculture is evidence that young people are turning to farming in order to survive since they lack the skills to obtain employment in other industries. According to a BCG-Dell Foundation analysis on the gig economy’s 2021 projections, there will be an increased need for highly qualified gig workers even in industries like oil and gas, small and medium-sized firms, and healthcare.

Out of the nine crore job openings, the biggest industrial sectors are likely to be construction, manufacturing, retail, transportation, and logistics, which may generate around seven crore gig worker positions over the next eight to ten years.

Nowadays, relatively few of the one lakh young men and women who leave Punjab for other countries each year get training in vocational skills that would enable them to obtain jobs and advance internationally.

There won’t be a shortage of employment or advancement in this area if the talent gap between the young and industry is closed. All parties involved—the government, business community, and general public—have a shared obligation to make sure the talent ecosystem is regularly updated and isn’t underutilized. Punjab’s cities and towns might become more globally attractive and desirable by bucking the long-standing pattern and fostering a thriving gig economy that provides opportunities for advancement.