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• Outdated curriculum & lack of market orientation in vocational training institutions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