Session 4 Youth Unemployment India Presentation

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Session 4 Youth Unemployment India Presentation

  1. 1. Employability of Disadvantaged Youth – The Indian Experience SRIJAN World Bank-CSOs Conference in East Asia and Pacific Region Jakarta June 20, 2008
  2. 2. Young women and men are the world’s greatest assets <ul><li>One in five people in the world are between 15 and 24 years old. Some 85% of them live in developing countries. </li></ul><ul><li>Over the next 30 years, this number will increase by another 1.2 billion, mostly in developing countries </li></ul><ul><li>192 million young people are unemployed (2005). A much higher number are underemployed. </li></ul><ul><li>Over the next decade, as many as 500 million young people are expected to enter the world’s workforce. </li></ul><ul><li>The unemployment rate for young people is 2 to 3 times higher than for adults. </li></ul><ul><li>In over a quarter of industrialized countries, young women’s unemployment rate is 20% higher than that for young men. </li></ul><ul><li>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 </li></ul>
  3. 3. Opportunities <ul><li>Economy growing at 8% per annum </li></ul><ul><li>Service sector: 40 million jobs by 2020- 11 th Plan Approach Paper </li></ul><ul><li>Retail sector: 115,000 jobs by 2020- Retailers Association of India </li></ul><ul><li>1.1 million professionals in the ITES- BPO segment by 2008- NASSCOM </li></ul><ul><li>Other promising sectors include construction, hospitality, and agribusiness/ food processing </li></ul>
  4. 4. Challenges for Disadvantaged Youth - The Supply reality <ul><li>Youth not prepared for emerging jobs – skills mismatch </li></ul><ul><li>Traditional skills learnt at home not formally recognized </li></ul><ul><li>Outdated curriculum & lack of market orientation in vocational training institutions </li></ul><ul><li>Social Compulsions </li></ul><ul><ul><li>Disadvantaged youth are thought to lack educational or other pre requisites for success in business </li></ul></ul><ul><ul><li>Remote areas and poor infrastructure adds to their disadvantage </li></ul></ul><ul><ul><li>Unaware of most profitable skills they need to acquire and inaccurate information about the type of work available </li></ul></ul>
  5. 5. Solutions/Experiences of Job Creation
  6. 6. Supporting Tribal Migrants Services for Migrants by Ajeevika Bureau
  7. 7. South Rajasthan: Livelihoods under stress <ul><li>Alternative employment outside the farm sector in the region is negligible </li></ul>South Rajasthan is one of the pockets of heavy out-migration in India <ul><li>Low agriculture outputs: small land holdings, semi-arid conditions and recurring drought </li></ul>Poor livestock potential: inadequate fodder, water and degraded pastures
  8. 8. Four Services <ul><li>Registration and Photo ID-s to Migrant Labour </li></ul><ul><li>And Skill Upgradation… </li></ul><ul><li>Communication and Tracking Services </li></ul><ul><li>Financial Services </li></ul><ul><li>Policy Advocacy, Legislative Action, Workers Unionization </li></ul>
  9. 9. New Life! Radhabai Chunnilal Rijmaram Meghraj Hemraj
  10. 10. Impact so far <ul><li>324 jobs </li></ul><ul><li>Income: Rs.2000 per month or USD 500 a year; </li></ul>
  11. 11. Impact so far <ul><li>324 jobs </li></ul><ul><li>Income: Rs.2000 per month or USD 500 a year; </li></ul>
  12. 12. Retailing Household Services Example: Home Managers for Cities
  13. 13. A Mutual Need Middle Class Need: A reliable, Efficient and Professional “ housemaid” Migrants or Slum Residents : Significant Increase in Incomes
  14. 14. Selection including Police Verification Technical Training Housekeeping
  15. 15. Impact: 1000 Home Managers Rs. 2,430 p.m. or USD 670 per year Net Salary Rs. 570 Deductions: Savings, Repayment of training charges, and contribution to Community Based Organisation Rs. 3,000 Gross Salary
  16. 16. Service Sector Jobs Example: ITES Jobs for Non-technical College Youth
  17. 17. 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
  18. 18. 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
  19. 19. Four phased approach <ul><li>Baseline Skills Assessment </li></ul><ul><li>Curriculum for Language and Analytical Skills </li></ul><ul><li>Lecturers training: 400 </li></ul>Phase 1 – Sowing the seed Phase 2 – Getting the ground ready Phase 3 – Nurturing the plant Phase 4 – Reaping the fruit <ul><li>Principals’ Conclave </li></ul><ul><li>124 colleges </li></ul><ul><li>Global Skills Training </li></ul><ul><li>Mentoring </li></ul><ul><li>Covering 6000 students </li></ul><ul><li>Recruitment Drives </li></ul><ul><li>556 students selected from one state alone </li></ul>
  20. 20. Accomplishments so far… <ul><li>124 colleges </li></ul><ul><li>387 lecturers </li></ul><ul><li>5900 students </li></ul><ul><li>28.21% Recruitment conversion (earlier 8 to 9%) </li></ul>
  21. 21. Lessons Learnt <ul><li>Cost of training can be as low as $200 </li></ul><ul><li>Cost can be shared by industry and government and youth; </li></ul><ul><li>Tie up with market players critical </li></ul><ul><li>Post placement support for social services must for migrant youth </li></ul><ul><li>Labour protection </li></ul>
  22. 22. Roles for Actors <ul><li>NGOs: </li></ul><ul><ul><li>Reach out to disadvantaged youth in villages and slums, </li></ul></ul><ul><ul><li>Tie up with industry and training institutions to provide skills and jobs, and </li></ul></ul><ul><ul><li>Support them through post placement with continuing education and basic social services. </li></ul></ul><ul><li>Private Sector: CSR Plus: </li></ul><ul><ul><li>Skill Training, </li></ul></ul><ul><ul><li>Reform Vocational Training Institutions </li></ul></ul><ul><li>Government: </li></ul><ul><ul><li>Social protection, </li></ul></ul><ul><ul><li>Subsidy for training & placement, </li></ul></ul><ul><ul><li>Enable reforms of Training & Educational Institutions </li></ul></ul><ul><li>Financial Institutions: Loan for Skill Training </li></ul>
  23. 23. Thank You!

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