What does the Skills Report, 2019, tell us about India’s Talent availability and Employment rate: A review of the recent report.

1. A REVIEW OF THE INDIA SKILLS REPORT, 2019
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What does the
Skills Report,
2019, tell us
about India’s
Talent availability
and Employment
rate
A review of the recent report.
Scarlett Buckley
NEXFORD UNIVERSITY
2019

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Contents
1. Abstract...........................................................................................................................................2
2. Introduction ..................................................................................... Error! Bookmark not defined.
3. Aims and Objectives........................................................................................................................3
4. Methodology.................................................................................... Error! Bookmark not defined.
5. Results.............................................................................................................................................4
6. Discussion........................................................................................................................................5
7. Conclusion ........................................................................................ Error! Bookmark not defined.
References ..............................................................................................................................................6
What does the Skills Report, 2019, tell us about India’s
talent and employability? A review of the recent report
1. Abstract
India boasts the world’s largest young workforce alongside the world’s fastest growing
economy. The collaboration of both these elements is contributing to the industrial shift,
demand in talent and future projections of employability. Through the developments in the
gig economy and enterprise, fresh ecosystems of jobs are emerging, with a demand for a
skilled workforce to fill the gaps. The India Skills Report, 2019, offers insights and rich data
regarding the changing and developing of the Indian workplace. It allows the reader to
understand further how the Indian job market might be affected. This paper offers a critical
review into this report, focusing on how talent and employability in the country has adapted
and evolved with the developing world. The review points that employability is on the rise
every year, with students in India indicating a 47% employability rate. However, even though
employability is on the rise, over half of the students (53%) remain ill-prepared for
employment. When looking into talent, 63% of employers responded to the survey indicating
that talent has not acquired the necessary skills for the workplace. The report presents some
valuable insights, underlining how employability and skills are shifting with the developing
state of industry. The reports vigorous methodology surveys and analyses responses of
300’000 students, across 29 states and over 100 employers. These responses allow for rich
data to be extracted, and in this review discussed.
2. Introduction
India’s jobs marketplace is booming transforming with an ever-growing population and evolving through the
industrial shifts. With these rapid developments occurring hand in hand, it is no surprise that it is one of the
world’s fastest-growing economies. The Indian government is now investing in such areas as, “highways,
renewable energy, urban transport, shipping, affordable housing, smart cities, rural roads program, natural waterways,
airports and industrial corridors etc.”, (India’s Skill Report, 2019). Investments into these areas endorse beneficial
developments to the social-economic status of the country providing India with a surplus of developing jobs and
opportunities.

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India is also equipped with the world’s largest young workforce; half of India’s population is under the age of 25. This
differentiatesitfrommoreadvancedcountriesfacingageingworkforce.‘Thefourthindustrialrevolution’ischaracterised
by the fusion of technologies and blending of cyber-physical systems. More developed countries hold the torch for this
revolution. However, it appears that due to the nature of the ageing workforce within these countries, there may be a
harshfutureahead.Forexample,iftheEUdoesnothirepeoplethroughmigration,astaggering96millionworkerswillno
longer be available by the year 2060 (Peschner, 2014). Therefore, India’s youthful workforce will be hugely attractive,
outshininganaged,elderlyone.ThereisanabundanceofpotentialyoungworkersinIndia,althoughtheissuemaynotlie
with availability, but their capabilities. With the growing economy and industrial shifts, comes the ever-growing demand
fortalent,andwiththistalent,comesexpectationsofquality.India’sworkforceneedstobepreparedfortherapidchanges
the country is undergoing to keep up and develop. Additionally, it is not just an issue of skill acquirement; rapid
advancementsin automationandtechnologymeanthattransferableskillswillbecrucialifIndia’sworkforceistoprepare
fortheworldofwork.
Withthisyoungworkforce, willalsocometheprerequisiteforeducation.Educationpromotesemployability, and thiswill
allowindividualstheopportunitytoprepareforanuncertainworldofwork.With600millionpeopleundertheageof25,
the acquirement of knowledge is key, as it will be this generation that will make an impact. India is soon projected to
overtake China with its population, with Delhi, additionally becoming the largest city in the world with a staggering 27
million people by the year 2028 (IBEF, 2019). The demands of education for the growing population need to be met so
thatthegenerationsgoingforwardcanmeettheneedsofthemarket. TheriseofIndia’seconomyispredictedtoclosein
onChina’sasadirectconsequenceofIndia’s,‘greater prosperityfor entrepreneurialinnovation,and itsyoung, technically
skilled,rapidlygrowingEnglishspeaking workforce-which isprojected tobein increasedglobaldemandaslabourcostsin
China rise faster than in India,’ (Trines, 2018). Therefore, when recognising the importance of India’s young, it is of no
surprisethateducationneedstobepromotedandembeddedinitsecosystemtoensurefutureworkforcereadiness.
3. Aims & Objectives
The aim of the current review is to provide a meticulous summary of the observations and data provided by
the most recent skill report in India. The review aims to promote the understanding and knowledge of where
the deficit in skills may lie in India’s workforce, as well as exploring the transformational changes
characterising its employment marketplace and industries. The main question to be evaluated in this review
is:
‘What does the India Skills Report, 2019, tell us about the country’s state of talent availability and
employability development? A review of the most recent report.’
- To review the relevant data for the insights it offer into skills
- To evaluate and analyse the relevant information extracted from the report
- To evaluate the findings to conclude the review question of interest
- To present limitations and critical appraisal the report
- To show how the findings of this report offer insights into skills in India
4. Methodology
For this review, data will be synthesised from the India Skills Report, 2019. Through this analysis, evidence
and insights will be provided pertaining to the central question. The promoting and understanding of India’s
markets is crucial due to the speed of the emerging population and industries. India’s developments could
have a global impact, so it is important to understand the workforce that will drive it.
The India Skills Report, 2019, was highly rigorous and surveyed 310,000 students across all 29 states, seven
union territories and 100 employers. It aims to log trends in alignment with the job skills market from,
‘employability & hiring trends, Automation & its impact on the industry, New types of jobs which are coming
into the picture, and Candidates & Employer preferences’. It was powered by Wheebox, one of India’s largest
online talent assessment tools, allowing for talent comparisons and insights. This assessment tool can be
used to benchmark industries and make ‘next generation’ predictions.

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5. Results
What was found
The report found that employability has continued to rise in India and reached a high of 47%. It has been
predicted that in parallel with this increase in employability, 40-50% of jobs will be taken over by automation.
40% will be impacted by technological advancements. It was also found that gig workers are on the rise with
every 1 in 4 gig workers in the world originating from India. It is estimated that these gig workers can earn
at least double the wages of an individual who is in a full-time job.
The 47% figure reflects the responses from students who are ready to start work after graduation. This then
leaves 53% of students lacking the skills they need to be prepared for the world of work. Employability was
found to have increased by 2-3% when compared to the previous year, and 15% when compared with data
from five years ago. The lowest employability rate was found to be in civil engineering. The highest rate of
employment was found in electronics, communication and electrical engineering, which have both had a
12-20% rise since the previous year. Individuals employability could be promoted through experience,
however only 37% of organisations offer intern opportunities with 84% of students ready and willing to
participate in them.
The state with the highest employability levels was found to be Andhra Pradesh, followed by West Bengal
and then Delhi. The states with the lowest rate of employability was found to be Tamil Nadu, followed by
Maharashtra and then Telangana. With regards to gender, this report found that female employability is on
the rise, with an increase from 38% in 2018, to 46% currently. Male employability rose from 47% to 48%
over the last year.
When looking into the employment predictions, the report found that hiring is expected to increase by 15%
across nine major sectors. Areas such as hospitality, engineering and automotive services will see a
significant rise in hiring. Tech companies are predicted to increase their hiring by 15-20% when compared
to 2019. The key job areas which are affecting this increase are, ‘Artificial Intelligence, Design, Analytics,
Research & Development’. Although employment trends are positive, 60% of recruiters claim that they are
unable to find suitable talent quality when looking to fill roles, and that job seekers should continually update
their skill set to remain competitive. In relation to salaries in India, the results were quite interesting as it is
only this year that it has had a significant increase, with 70% of candidates expecting at least two lakh Indian
Rupees or more in their first job. This is not considered a large amount in comparison to more developed
countries; however, as the skills of the worker grow; so, will the salaries.
India does not appear to be slowing down in its hiring, with the trend increasing every year and no forecasts
of slowing down. Compared to 2018, there has been a 15% increase in hiring. This increase is recorded across
all states of India, with 64% of employers having a positive outlook on hiring. The top preferred skills in
demand by employers were communication skills, adaptability and learning agility. Employers were also
asked about the quality of the talent available in the market, to investigate how they felt about the
candidates available. 63% of employers responded that some or no job seekers meet the skill requirements,
with only 37% responding that they believe that job seekers match and fit the skill requirements. These are
alarming statistics to say the least as the scale of challenge given India’s working age population makes it a
challenging issue for the economy and the government to tackle.
Strengths and Limitations of the Report
The India Skills report is built on reliable data gathered from the Wheebox methodology. 310’000 students
were surveyed across 29 states, seven union territories, with over 100 employers also being surveyed. This
is a large sample to have been surveyed, although due to the vastness of the population, there is a limitation
to how reliable this data is. It is highly beneficial that all 29 states were investigated ensuring that each one
is represented in the report. However, only 100+ employers were surveyed; 100 employers is not a large
enough sample to provide reliable insights into India presenting threats to external validity. If real market
trends and needs are to be analysed from the employer, then more employers should have been
approached. The report states 100+ employers, which is very vague; it would be more insightful for the
reader to know the number of employers targeted to understand the weight and representativeness of the
responses.

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Beyond the rich data and insights, the report makes recommendations and suggestions of ways
employability can grow and develop. For example, it looks into gender diversity and what needs to be done
to encourage women at work. This provides practical avenues for employers, offering advice on
encouragement of women entrepreneurs, and ensuring women’s safety. These recommendations could
prove useful to employers looking to enhance their talent attraction and retention strategies.
6. Discussion
This review set itself to identify the main findings of the India Skills Report, 2019, to better understand the
talent and employability trends in the Indian marketplace. The report provides insights into India’s talent
market for the last five years, with informative insights into the industrial shifts. The report states that 40%
of jobs could be lost to automation, with a shift from agricultural jobs to non-agricultural opportunities. The
developments of automation will have massive consequences for India’s workforce, as the individuals in
these jobs will need to adapt to the developing world. The need to skill and reskill will be essential during
this time, and the workforce should be offered a platform to do this so they are not left behind. With this
automation will come the rise and development of the gig economy. The gig economy has had a huge impact
on India with the report affirming that 1 in every four workers globally is from India. Other sources have
provided evidence for this, stating that 70% of firms used gig workers in India, 2018 (THEWEEK, 2019). Gig
economy is having a revolutionary impact on India’s workforce; workers are now able to supplement skills
of the existing workforce, with 45% of human resource professionals and independent consultants saying
that they would rather hire a gig worker for this reason; 39% so that they could cut costs, and 10% to fill
short term vacancies. With all this in mind, it is further understood how automation and gig economy is set
to impact India’s workforce and the job market. The gig economy may have a knock-high on effect to talent
and employability then, as the talent may become more specialised allowing for independent work,
employability may also increase with this specialisation due to employers looking into hiring people for one
task or temporary positions.
The report also looks into the employability of students across India; it is interesting to consider that from
the 304,383 students who were surveyed, only 47% of them were regarded as employable. This leaves 53%
of students unprepared for the world of work. There needs to be a rapid growth of students readily available
for work, as the financial cost of training 158, 279 ill-prepared students could have a massive effect on the
economy. Programs need to be put into place to promote employability for students, and further
understandings from educational platforms of how they can promote the societal and market needs.
Internships need to be promoted and offered, if 84% of students are willing and ready to accept internships,
then why is only 34% of organisations offering them? If organisations wish to cut costs in the future, this
could be their platform to do so. Through the dismissal of this process, they may hinder themselves in the
future, having to make huge investments in their workforce ensuring they acquire the skills and abilities they
need to be efficient and productive in the organisation. The report cites that one company invested $200-
$250millioninitsworkforcetoensurethattheywerereskilledandreadyforthefutureofwork.Withthisinvestment,they
alsolookedtoidentifytheprogressionofjobrolestoensurethattheiremployeesarereadyforthepositionsthatarelikely
to develop. However, not every company has available $200/250 million to invest in its workforce, and so for smaller
companies, it would bemore effective if thetalent was readily available. Therefore, thereneeds to begreater alignment
between universities and employers to allow for students to be work ready and keep up with the work demand of the
future.
The state with the highest employability was found to be Andhra Pradesh. The reason for this is due to the ‘APSSDC’
programme,whichlookstoboostemployability.ThisprogrammewasstartedanddevelopedbyShriChandrababuNaidu,
andaimsto“target20millionpeopleinAndhraPradeshinthenext15yearstowardsskillingandentrepreneurship[…]and
shapeAP as the skilled-workforce and knowledge hub for the world.” (APSSDC, 2019). The effectsof thisprogram can be
identified throughtheresultsinthereport.Therefore, ifallstateswanttopromoteemployabilityand allowindividualsto
be better prepared for work, there should be more accessible programs such as these to promote employability
throughoutthecountry.
Thereportalsoprovidesevidencefortheincreaseintheemploymentofwomenfrom38%in2018,to46%in2019.This
increase isbeneficial as itencourages and promotes equality in employment. India has one ofthe lowestpercentagesof

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women that work globally, representing a meagre 27% (India Skill Report, 2019). The patriarchal society in India has
massive repercussions when it comes to women working; however, with the country developing, gender equality will
develop too. If India is going to meet the demand, then there needs to be acceptance of women working. With gender
parity,theIndianeconomycangrowattherateof9to10%,soitwouldbedetrimentaltothecountryitselfnottopromote
this. If the gender ratio ofmen to women at work was balanced out, it is estimated that the democracy currently would
be 27% richer, (The Economist, 2018). The employability of women has a massive positive impact on businesses
throughout India, and this could be furtherpromoted through the endorsement of skill acquirement. This endorsement
couldhavemajorbenefitsasalthoughtheemployabilityofwomenisincreasing,thereisstillanunderlyingissueofwomen
havingunequalskillbeneficiariesofmen.Forthedemandtobemet,itmustbethroughthecontributionandcollaboration
ofbothmaleandfemaleworkers,withbothofthembeingofferedthesameskillacquisitionprograms.
Hiringispredictedtoriseatasteadyrateof15%,withcompanieshiringthemostfor,‘artificialintelligence,design,analytics,
researchanddevelopment.’TheriseofemploymentfromthesesectionsisaresultoftheincreasedautomationIndiaisup
against.AreassuchasAIarethoughttoimpactallaspectsoflife.However,theissueisthattheworkforcedoesnotseem
prepared to face the automation, with the report showing that 60% of recruiters are unable to find suitable candidates.
With the demand of industry rising and the economy booming, the population of India needs to be ready to adapt and
workwiththeseadvancements.Educationneedstobepromoted,studentsneedtobecoached,andtheworkforcesneed
tobeupskilled.50%ofIndia’spopulationisunder25,andpolicyneedstobeputintoplacetomakethemtechabled,boost
knowledgeregardingautomationtechnologiesandwhattheimplicationsofthismaybe.
7. Conclusion
Overall the India Skills report, 2019, has provided insights into India’s evolving industries and job market. With the
transformation of these, will come adaptations to current jobs, and introductions to new ones. India’s population is
booming with potential talent, hence there should be no shortage of individuals to employ. The issue may lie with the
preparednessoftheseindividuals,ifIndiawantstoreachitsfullsocio-economicpotentialthenpreparingtheworkforceis
crucial.Employabilityhasbeenrisingaround3%everyyear,however53%ofstudentswerestillseentobeillpreparedfor
work.Thereneedstobemoreopportunitiesputintoplacetohelpboostemployability,iftheyoungworkforceisgoingto
face its future confidently, then they need to be trained to do so. Andhra Pradesh’s program dedicated to boosting
employabilityhasnowresultedinitbecomingthestatewiththehighestemploymentlevels.Toconcludewiththisreview,
the report shows there is talent available due to the sheer size of the population, and that employment rates are on the
rise, however for the country to reach its full potential, there needs to be a way of delivering quality talent and boosting
employment,asIndianeedstobereadyforthealtercationsthatareoccurringnowandthoseinthefuture.
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