Session 4 Youth Unemployment India Presentation

Employability of Disadvantaged Youth – The Indian Experience

SRIJAN

World Bank-CSOs Conference in East Asia and Pacific Region

Jakarta

June 20, 2008

Young women and men are the world’s greatest assets One in five people in the world are between 15 and 24 years old. Some

85% of them live in developing countries.

Over the next 30 years, this number will increase by another 1.2 billion, mostly in developing countries

192 million young people are unemployed (2005). A much higher number are underemployed.

Over the next decade, as many as 500 million young people are expected to enter the world’s workforce.

The unemployment rate for young people is 2 to 3 times higher than for adults.

In over a quarter of industrialized countries, young women’s unemployment rate is 20% higher than that for young men.

The informal sector account for up to 93% of all jobs available to young people, wages in the informal sector are 44% lower than the formal economy, and protection and benefits are nonexistent

Opportunities

Economy growing at 8% per annum Service sector: 40 million jobs by 2020- 11th

Plan Approach Paper

Retail sector: 115,000 jobs by 2020- Retailers Association of India

1.1 million professionals in the ITES- BPO segment by 2008- NASSCOM

Other promising sectors include construction, hospitality, and agribusiness/ food processing

Challenges for Disadvantaged Youth - The Supply reality

• Youth not prepared for emerging jobs – skills mismatch

• Traditional skills learnt at home not formally recognized

• Outdated curriculum & lack of market orientation in vocational training institutions

• Social Compulsions

• Disadvantaged youth are thought to lack educational or other pre requisites for success in business

• Remote areas and poor infrastructure adds to their disadvantage

• Unaware of most profitable skills they need to acquire and inaccurate information about the type of work available

Solutions/Experiences of Job Creation

Supporting Tribal Migrants

Services for Migrants by Ajeevika Bureau

South Rajasthan: Livelihoods under stress

Alternative employment outside the farm sector in

the region is negligible

South Rajasthan is one of the pockets of heavy out-

migration in India

•Low agriculture outputs: small land holdings, semi-arid conditions and recurring drought

Poor livestock potential: inadequate fodder, water and degraded pastures

• Registration and Photo ID-s to Migrant Labour

•And Skill Upgradation…

•Communication and Tracking Services

•Financial Services

•Policy Advocacy, Legislative Action, Workers Unionization

Four Services

Radhabai

Chunnilal

Rijmaram

Meghraj

Hemraj

New Life!

Impact so far

324 jobs Income: Rs.2000 per month or USD 500

a year;

Impact so far

324 jobs Income: Rs.2000 per month or USD 500

a year;

Retailing Household Services

Example:

Home Managers for Cities

A Mutual Need

Middle Class Need:

A reliable,

Efficient and Professional

“housemaid”

Migrants or

Slum Residents :

Significant

Increase in Incomes

Selectionincluding Police

Verification

Technical Training

Housekeeping

Impact: 1000 Home Managers

Gross Salary Rs. 3,000

Deductions: Savings, Repayment of training charges, and contribution to Community Based Organisation

Rs. 570

Net Salary Rs. 2,430 p.m.

or USD 670 per year

Service Sector Jobs

Example:

ITES Jobs for Non-technical College Youth

Demand Supply gap

0

0.5

1

1.5

Million Graduates

2006 2007 2008 2009 2010

Demand facing India if it maintains 46% offshore industry

Supply based on current trends

2

And never the twain shall meet!!

Source: Nasscom McKinsey report

Genesis – A curriculum for employability

An initiative with degree colleges in Tier 2 towns

to better align the needs of the colleges, faculty and students with the needs of the industry

• Baseline Skills Assessment

• Curriculum for Language and Analytical Skills

• Lecturers training: 400

Phase 1 – Sowing the seed Phase 2 – Getting the ground ready

Phase 3 – Nurturing the plant Phase 4 – Reaping the fruit

• Principals’ Conclave

• 124 colleges

• Global Skills Training

• Mentoring

• Covering 6000 students

• Recruitment Drives

• 556 students selected from one state alone

Four phased approach

Accomplishments so far…

124 colleges

387 lecturers

5900 students

28.21% Recruitment conversion (earlier 8 to 9%)

Lessons Learnt

Cost of training can be as low as $200 Cost can be shared by industry and

government and youth; Tie up with market players critical Post placement support for social

services must for migrant youth Labour protection

Roles for Actors NGOs:

– Reach out to disadvantaged youth in villages and slums,– Tie up with industry and training institutions to provide skills and

jobs, and – Support them through post placement with continuing education

and basic social services. Private Sector: CSR Plus:

– Skill Training, – Reform Vocational Training Institutions

Government: – Social protection, – Subsidy for training & placement, – Enable reforms of Training & Educational Institutions

Financial Institutions: Loan for Skill Training

Thank You!