India's job crisis: Could Andhra Pradesh's skill census be Modi 3.0's game-changer?

India, with its booming population, is facing a gloomy job scenario. Even its 7% economic growth may not bring any cheer. The issue is not just ‘how many’ jobs are being created, but also ‘what kind of’ jobs, which presents a crisis within a crisis. Amidst this grim situation, an idea from Andhra Pradesh could be a game-changer for Modi 3.0.

Andhra Pradesh Chief Minister N Chandrababu Naidu is starting a skill census in the coastal state and will suggest a similar exercise to Prime Minister Narendra Modi to map the skill sets available to the population and develop human capital, reported The Times of India.

Andhra’s skill census is expected to provide accurate data for the govt, employers, and other stakeholders, helping them in making informed decisions about workforce development and resource allocation. It will also guide educational institutions in fixing their curricula with industry needs, ensuring graduates are better equipped for the workforce.

Unlike INDIA bloc states that have been pushing for a caste census, Naidu stated that the initiative aims to transform the PPP model into a “public, private, people’s partnership,” aiming to achieve improved outcomes for citizens. Enhancing skills and generating employment are central priorities for the Modi government, with several measures anticipated in the upcoming Union Budget.

India’s job crisis

According to Citigroup Inc., India will find it tough to generate enough jobs for its growing workforce over the next 10 years even if the economy grows at a pace of 7 per cent.

As per Citi estimates, the country will need to create about 12 million jobs a year over the next decade in order to absorb the number of labor market new entrants.The bank’s economists Samiran Chakraborty and Baqar Zaidi wrote in a report, “Based on a growth rate of 7%, India can only generate 8-9 million jobs a year.”On the quality front, the Citi analysis of official data shows that about 46% of the workforce is employed in agriculture, which contributes less than 20% to GDP. Manufacturing accounted for 11.4% of total jobs in 2023, a decrease from 2018, indicating the sector has not fully recovered post-pandemic.

Employment in the formal sector dropped to 25.7% in 2023, the lowest in at least 18 years. Only 21% of the workforce, approximately 122 million people, hold salaried or wage-paying jobs, down from 24% before the pandemic.

How will skill census help the government and people?

The skill census is anticipated to deliver precise data for the government, employers, and other stakeholders, helping them make well-informed decisions regarding workforce development and resource distribution. Additionally, it will assist educational institutions in tailoring their curricula to meet industry demands, ensuring that graduates are better prepared for the job market.

The skill development and training department will take immediate action and the state govt has directed all heads of departments to extend their full cooperation for the successful conduct of the “Skill Census 2024”.

Skill census is the first of its kind exercise in the country to upskill manpower to provide with better employment opportunities. The TDP govt is aimed at creating 20 lakh job opportunities over the next five years. The skill census has been taken up in that direction to achieve the target.

What is skill census?

In June, the Andhra Pradesh govt issued orders to conduct skill census to assess profiles, skill needs and skill disparities for providing necessary training to empower individuals. It was one of the first five files chief minister N Chandrababu Naidu cleared on his first day in office. Andhra Pradesh State Skill Development Corporation (APSSDC) will be the nodal agency to conduct skill census in the state.

Skill census will be a comprehensive assessment and date collection exercise aimed at understanding the skills and competencies possessed by individuals and to identify the “skill gaps” which are to be filled to match the demand of the industry.

The skill census will be conducted through comprehensive surveys, capturing information on education, work experience, training, skill proficiency levels.

Stakeholders’ consultation and advanced data analytics techniques. The exercise will involve rigorous validation mechanisms to ensure accuracy and reliability of the collected data.