Apprenticeships can help India bridge the employability gap: TeamLease’s Mahanta

TeamLease Degree Apprenticeship, is bullish on the potential of apprenticeships to address India's burgeoning skill gap. The company believes that with India witnessing a significant job creation spree, apprenticeships can be a game-changer in equipping the youth with the necessary skills to tap into these opportunities.

“Apprenticeships can be a great way forward in bridging the employability gap, offering practical, on-the-job training that aligns with industry needs,” says Dhriti Prasanna Mahanta, Vice President & Business Head, TeamLease Degree Apprenticeship in an exclusive interaction with Bizz Buzz

How do you see the current employment growth rate reported by the RBI influencing the demand for apprenticeships in India?

According to the Reserve Bank of India's report, India created nearly 4.7 crore jobs in FY24, surpassing several other estimates and reflecting a substantial improvement in the job market. The employment growth rate for 2023-24 is estimated at 6 per cent, compared to 3.2 per cent in 2022-23, indicating a positive trend. This significant rise in employment underscores the need for a numerous, skilled, and employable workforce. However, there remains a notable skill gap that must be addressed to capitalise on these opportunities fully. Apprenticeships can be a great way forward in bridging the employability gap, offering practical, on-the-job training that aligns with industry needs. This is particularly relevant as industries, including the manufacturing sector, increasingly adopt digital transformation, requiring workers skilled in traditional and emerging technologies. For instance, over the past six years, more than 28.26 lakh apprentices have been engaged, with a notable increase to 10,00,000 in 2023-2024 alone. This growth in apprenticeship numbers highlights the increasing recognition of their value in equipping individuals with the necessary skills to meet the demands of a growing job market.

The surge in employment opportunities also suggests increased economic activities and entrepreneurial ventures, where degree apprenticeships and work-integrated learning programs can provide a practical foundation for the youth to develop skills and knowledge. Furthermore, the reported employment growth also emphasises the strategic importance of investing in human capital through apprenticeships, ensuring a steady pipeline of qualified talent to sustain long-term economic stability. Aligning educational institutions, employers, and policymakers through tripartite contracts can further streamline this process, ensuring apprenticeships effectively contribute to India's economic and employment growth.

What role can apprenticeship programs play in improving the labour force participation and overall employment rates in India?

The latest Periodic Labour Force Survey (PLFS) data indicates a positive trend in workforce development in the country. The workforce participation rate (FPR) in urban areas increased from 48.5 per cent to 50.2 per cent between January-March 2023 and January-March 2024. Furthermore, the female labour force participation rate (LFPR) rose to 25.6 per cent in early 2024, signifying an upward trend. Additionally, the worker-population ratio (WPR) among individuals aged 15 years and above increased from 45.2 per cent to 46.9 per cent during the same period, highlighting improved employment rates nationwide. While this progress is commendable, implementing apprenticeship programs can further strengthen the workforce. These programs provide structured on-the-job training combined with classroom education, preparing the future workforce and enhancing the employability of youth and women. Apprenticeships offer hands-on experience, industry-specific skills, and practical knowledge aligned with market demands, addressing job market challenges and enhancing skills crucial to various sectors.

Despite the positive trends, India's overall unemployment rate remains at 9.1 per cent, with urban female unemployment at 21.7 per cent, highlighting persistent job market challenges. Apprenticeships address these issues by providing industry-specific training that enhances skills across sectors. By enabling participants to earn while they learn, apprenticeships create pathways to financial independence and stability, which is crucial for marginalised groups and women entering the workforce. Moreover, apprenticeships establish a sustainable pipeline of future workforce talent, ensuring a continuous supply of skilled workers capable of meeting evolving industry needs. By formalising employment and supporting the growth of Micro, Small, and Medium Enterprises (MSMEs), apprenticeships contribute significantly to broader economic development.

What specific skills are currently in highest demand, and how is TeamLease addressing these through apprenticeship programs?

With over 808 million youth below 35, India faces a critical reflection on the disparity between potential and realisation, ambition and support, and the correlation between employment and employability. The New Education Policy (NEP) 2020 emphasises a shift towards holistic, skill-based education, which is imperative for success. There has been significant demand for a skilled workforce across sectors, but among the emerging and high-demand skills are AI-ML, green skills, smart manufacturing, robotics and automation, data analytics, AI-based skills, EV service engineering, data avionics, and semiconductor-related skills. Alongside these technical skills, soft skills such as design thinking, creativity, adaptability, resilience, and empathy are indispensable for navigating the complexities of modern work environments. This growing demand for a diverse skill set underscores the urgent need to bridge the skill gap, especially as India's technology industry experiences significant growth, evidenced by a 15 per cent rise in AI/ML jobs and a projected skill gap of 250,000 to 300,000 in the semiconductor roles.

We address these skill demands through our robust apprenticeship programs that align education with industry needs. Recognising the shortcomings of an education system heavily skewed towards qualifications rather than skills, we have been pioneering the integration of work-based learning with formal education. We ensure that our youth is equipped with practical, real-world skills through our Degree Apprenticeships, Work Integrated Learning Programs (WILPs), and NAPS and NATS apprenticeship program administration. Over the past decade, we have placed 10,00,000 apprentices across various sectors, achieving a remarkable 98 per cent transition rate into formal employment, with 40 per cent of apprentices being absorbed by the same organisations. By partnering with over 22 universities, 300 colleges, 150 field recruiters, and multiple government agencies, we leverage extensive sourcing channels to match talent with employer requirements. Our investment in in-house ATS and mobile apps further enhances the efficiency of tracking apprentices' life cycles, providing real-time information to applicants and employers. This comprehensive approach addresses the current skill deficits. It prepares India's youth for future workforce challenges, ensuring they are well-equipped to contribute to the nation's economic growth and sustainability goals.

What are the critical challenges in bridging the skills gap in India, and how can apprenticeships solve these challenges?

One of the primary challenges faced in the apprenticeship landscape is the need for more awareness and understanding of apprenticeships among employers and potential apprentices. Despite the significant benefits apprenticeships offer in bridging the skill gap, many employers need to be more confident due to misconceptions about the complexity and cost of these programs. Additionally, the low employability of graduates further exacerbates the issue, as the education system in India has traditionally focused more on theoretical knowledge than practical skills. Another significant challenge is the lack of infrastructure and resources to support extensive apprenticeship programs, which limits their accessibility and effectiveness. Moreover, there is often a mismatch between the skills taught and the actual industry requirements, leading to a disconnect between education and employment. Furthermore, there is a considerable gap in the engagement of Small and Medium Enterprises (SMEs), which are crucial for broad-based economic growth but often need more capacity or incentives to implement apprenticeship programs.

Despite apprenticeships in India expanding at an average pace of 30-35 per cent, the current apprentice engagement accounts for barely 0.18 of the Indian labour force, with about 10,00,000 apprentices enrolled in the last year. As India strives to become a developed nation, we aim to reach a comparable level of engagement, requiring approximately 20 million apprentices. This ambitious goal necessitates significantly accelerating apprenticeship adoption to align our demographic dividend with anticipated economic growth.

To achieve this, two critical areas need to be addressed: linking apprenticeship with higher education through degree apprenticeships and encouraging more SMEs to engage in apprenticeship programs. Degree apprenticeships under the New Education Policy provide a structured pathway that combines academic learning with practical industry experience. Additionally, establishing an apprenticeship credit framework for lateral entry to higher education, tailoring schemes for MSMEs, promoting adult apprenticeships for lifelong learning, and scaling up support mechanisms like Third-Party Aggregators (TPAs)—which manage 80 per cent of apprentices need to be scaled up as by addressing these areas, we can ensure a more inclusive and skilled workforce, driving India's economic growth.

What policy changes or government support would further enhance the impact of apprenticeship programs in India?

Apprenticeship programs in India play a crucial role in bridging the gap between academic learning and industry demands. However, they constitute only 0.18 per cent of the workforce, unlike developed economies with 3-4 per cent participation. To harness India's demographic dividend and propel economic growth, significant policy reforms and heightened governmental support are essential. First, transitioning from bilateral to tripartite engagement involving students, educational institutions, and industries is crucial. This approach, exemplified by Degree Apprenticeship programs, integrates theoretical knowledge with practical experience, effectively preparing a specialised talent pool tailored to meet evolving industry needs. Additionally, from a reforms perspective, increasing the apprenticeship quota in PLI-registered organisations to a 15 per cent-30 per cent benchmark, particularly in sectors like textiles, tourism, and logistics, will bolster workforce formalisation and skill development. Moreover, providing government incentives for Third-Party Aggregators (TPAs) will facilitate scalability within MSMEs, thereby overcoming financial constraints.

Furthermore, extending apprenticeship durations to align with educational pathways, from secondary education through postgraduate levels, aims to attract participants from diverse socio-economic backgrounds, including rural communities and women, thereby enhancing formal employment rates. Simplifying regulatory frameworks and adopting an integrated Apprenticeship Credit Framework aligned with the National Education Policy (NEP) and National Skills Qualifications Framework (NSQF) are critical to ensure seamless transitions across educational levels and improve program accessibility. At TeamLease Degree Apprenticeship, we have advocated for these reforms and propose their widespread adoption to revolutionise India's apprenticeship landscape. If implemented comprehensively, these measures can elevate apprenticeship engagement, unlocking the vast potential to nurture 15-20 million apprentices. This expansion enriches India's talent pool, boosts entry-level wages, enhances productivity, and fosters a robust partnership between academia and industry. By establishing a conducive environment for apprenticeship programs to thrive, India can unlock substantial economic and industrial growth, paving the way for a skilled workforce equipped to meet the challenges of tomorrow's economy.