The report unveiled by the Ministry of Skill Development and Entrepreneurship examines India's skills landscape against the backdrop of the emerging knowledge-driven global economy.
Key Highlights
India's Skills Landscape
- Low-competency Occupations: About 88% of the workforce is engaged in low-competency occupations (2023-24).
- Skill Mismatch: Many workers occupy roles that do not correspond to their education levels, either due to over qualification or under qualification.
- Structural Issues: Over qualification in low-skill jobs reflects the lack of sufficient high-skill job opportunities whereas under qualified workers in high-skill roles reveal gaps in access to education and training, especially for low-income & rural groups.
- Skill Shortages in High-Skill Jobs: As many lacking the requisite education for these roles.
Impact of Skill Mismatch
- Reduces Economic Productivity: As overqualified workers (underuse of potential) occupy low-skill roles while under qualified workers struggle in high-skill positions.
- Inefficient Human Resource Allocation: Misaligned skills limit labor market efficiency, hinder innovation, & undercut the country’s ability to harness its demographic dividend.
- Limits Social & Economic Mobility: Mismatches reinforce existing inequalities, limiting upward mobility and widening socio-economic disparities.
- Migration & Brain Drain: Gap in opportunities can spur large-scale migration to other states or even countries.
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