Developed states not adding to skill sets: Study -Governance Now

Developed states not adding to skill sets: Study

Real estate would have incremental human resource requirement of 31 million in the next five years, while retail sector would need about 17 million additional workforce

GN Bureau | May 29, 2017

#human resources #skill development #ASSOCHAM

The most economically developed states are not adequately adding to skillsets, which may result in severe shortages of skilled manpower in the coming years, according to an ASSOCHAM-Thought Arbitrage Paper.

Maharashtra is leading the table followed by Tamil Nadu. Other states which lack in creating skilled manpower include Haryana, Gujarat, Kerala, Himachal Pradesh and Punjab, said the paper.

Read: Skill Development in India: Big Promises, Tall Failures

By 2022, the biggest deficit in supply of skilled labour force is expected to be faced by Maharashtra, with the number pegged at 48.9 lakh persons, according to the paper. Tamil Nadu comes close second with shortage of 46.3 lakh.

“These two states together account for more than 70 percent of the skills deficit in these seven states (mapped by the paper) with highest per capita NSDP (Net State Domestic Product) and large skill gaps. Haryana and Gujarat are expected to face shortage of approximately 13 lakhs and 11 lakhs persons respectively by 2022. Kerala, Himachal Pradesh. and Punjab are likely to witness skills shortage of about five lakhs each by 2022,”, it said.

Read: Skill India: How Uber is generating livelihood opportunities for youngsters

In terms of verticals, construction, building and real estate would have incremental human resource requirement of 31 million in the next five years, while retail sector would need about 17 million additional workforce.

Other sectors generating employment opportunities through skill up gradation include beauty and wellness (10 million), transportation and logistics (12 million), furniture and furnishing (7.2 million) and handloom, handicrafts (6 million). Textiles and clothing would require additional 6.3 million people and tourism and hospitality 6.5 million.

"Our mapping of the skills shortages suggest that committing resources to training and skill upgradation would serve the twin purpose of employment creation as also helping the industries to grow in a cost effective manner," said ASSOCHAM secretary general DS Rawat.

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