Skill Upgradation and Employment Generation

1. Skill Upgradation and Employment Generation Dr.Vijay kumar,I.A.S. Secretary, Municipal Admn Govt of Andhra Pradesh, India 1

2. India- A high growth economy • Average annual growth from 1997 onwards at more than 7% • From 2001 to 2011 average quarterly GDP growth rate at 7.45% with a peak of 11.8% during December 2002. • GDP now stands at 1729 billion US dollars • India now stands 4th in world in GDP measured in Purchasing Power Parity However………..

3. Since the recording of high economic growths, India’s poor have reduced in numbers by ten percentage, but …. • Still 22% of population are below poverty line. • Of the 238 million poor, 68 million reside in urban areas • World Bank estimates • Nearly 42% of India’s population lives on less than $ 1.25 per day • 3 out of every 4 Indians live on less than $ 2 per day, This is because of

4. A 9% Growth Economy needs Skilled Manpower – the Economic Growth Challenge … Source: NSDC Report on Human Resources and Skill Requirements in various sectors (2022) Agriculture capacity to absorb human resources limited 54% of population dependent on agriculture, but contribution of agriculture to GDP is around 18% Need for transition of labour from farm to industry Incremental HR requirements till 2022 for top 15 sectors is estimated to be 178 mn 68% of requirement is for skilled entry-level-operators - education levels of high school and below

5. There is Increase in Unemployment, Despite the growth in jobs • Employment generation over 1999–2000 to 2004–2005 grew on average by 2.8% per year) • But, unemployment rate increased from 7.3% in 1999–2000 to 8.3% in 2004–2005, due to quicker labor force growth • This is because of the large number of people being turned away from farm sector because of the large scale hidden unemployment in this sector towards other sectors.

6. Further there is a large unemployment in manufacturing sector According to the 2001 Census, 71% of the urban workforce falls in the category of “marginal workers.” Further there is a huge shortfall of skill base for other workers in manufacturing and service sector which leads to poor remuneration And so these employed workers also continue to be poor.

7. The Urban Poor are Stuck in a Vicious Poverty Trap Due to the Lack of Employability • Most of the labour force is not employable • Only 6% of the urbanlabour force aged 15-29 yrs have received any type of vocational training (NSS) • 67% of the work force is either illiterate or primary school level educated, making them ineligible for formal vocational training • Even those who have skills have developed them on the job and are not formally certified, precluding them from the organised sector

8. Thus Market-Relevant Skill Development is the only Means to Break the Poverty Cycle • Courses to be designed to meet the specific needs of the industry, across sectors • Employment linkages with organised sector • Short-duration courses to improve accessibility to trainees • No artificial educational requirement barriers • Formal certification • Employment in organised sector to form the basis for financial inclusion and access to social security

9. The Government has set ambitious targets for skill development in the country To be trained under grant funding by Central Government Ministries and State Governments National Skill Development Mission Target : Skilling 500 million Indians by 2022 To be trained by NSDC through PPP 350 million 150 million

10. The Planning Commission has identified 20 High Growth Sectors for achieving socio-economic objectives…. Automobile & Auto-components Banking/Insurance & Finance Services Building & Construction Industry Chemicals & Pharmaceuticals Construction Materials / Building Hardware etc Educational & Skill Development Services Electronics hardware Food Processing / Cold Chain / Refrigeration Furniture & Furnishings Gem & Jewelry • Health Care Services • ITES or Business (BPO) Process Outsourcing • ITS or Software Services / Products • Leather & Leather goods • Media, Entertainment, Broadcasting, Content Creation & Animation • Organized Retail • Real Estate Services • Textiles, Apparel & Garments • Tourism, Hospitality & Travel Trade • Transportation Logistics, Warehousing & Packaging etc.

11. Andhra Pradesh Scenario

12. State Socio-Economic Profile … • Population : 84.6.million • 67.66% literacy • 31.0 million population in the age group of 15-34 • BPL Population – 12.7 million • 6.5 million rural & 6.2 million urban • GSDP for 2010-11 at Constant Prices is Rs. 3,710 billion. • Annual Growth rate of GSDP at constant prices: 8.89% • Planned annual economic growth rate of 9% during the 11th Five Year Plan (2007-2012)

13. Quantitatively the Education & Skills Training Infrastructure in the State is less than adequate Except in the Primary School and Engineering Colleges segment, the number of institutions in all other segments is less than the requirement Elementary, UPS & High Schools : 97,557 Govt. Industrial Training Institutes (ITI s): 131 Polytechnics (Govt. & Private) : 200 Junior Colleges: 4,264 Degree Colleges : 1,879 Engineering Colleges : 540 Medical Colleges : 50

14. The work force in A.P suffers from • Chronic underemployment because of lack of skills. • Huge numbers of marginally employed in services and manufacturing sector • Huge unemployment in urban areas because of migration to cities for better oppurtunities • Lack of oppurtunities for skill upgadation

15. Vision and Mission of GoAP Vision :-All urban poor families To have: improved quality of life By accessing: services from all organizations Through: own strong self reliant and self managed institutions. Mission:- To eliminate: poverty, vulnerability and improve their quality of life By providing: Income generating and sustainable livelihoods. Implementation mechanism Mission for Elimination of Poverty in Municipal Areas. (MEPMA), an independent organization working on a mission mode. 15

16. Operational Area URBAN AREAS IN THE STATE • Total 149 • proposed 31 Total Urban Popn. – 28.3 mn Total Slums - 7520 BPL Population – 8.9mn BPL Households – 1.99mn

17. The strategy adopted • Market scans conducted to identify the opportunities available • The skill set required for such job oppurtunites identified • Persons requiring the jobs identified • Agencies for imparting training in these skills identified • Training modules designed and implemented to these identified job seekers through identified agencies

18. High Growth Potential Industries/ Sectors in AP High Construction Tourism IT & ITES Financial Services Textiles Employment Potential Health Care Chemicals & Fertilizers Engineering Drugs & Pharma Biotech Agro & Food Processing Mines & Minerals Paper Low Low High Competitive Positioning

19. Employment generation – AP Interventions • Skill Training for Employment Promotion amongst Urban Poor( STEP-UP) • Urban Self Employment Programme (USEP) • Urban Women Self- help Programme (UWSP) • Urban Wage Employment Programme (UWEP) • Bank linkage – Micro finance to Community based organizations • Social infrastructure under Integrated Housing and Slum Development Programme (IHSDP) of JnNURM.

20. Skill Training for Employment Promotion amongst Urban Poor( STEP-UP) • Identification of trainee • Identifying the candidates through community based organizations. Training: • Imparting customized skill trainings based on Market scan. Certification: • Assessment of each trainee. • Engaged reputed organizations from the industry. Placement: • Minimum salary assured to the placed candidates. • Establishing industrial network. Monitoring: • Web based monitoring of selection of candidates, trainings, attendance and placements. http://apmepma.gov.in • Refresher trainings every 3 months for one year. • One year tracking of the candidate. Achievement: • For the last 4 years trained 0.14 mn and placed 0.10 mn • Approximate earnings around Rs.6.3 billion per year.

21. Process of training Market scan of companies survey for identifying candidates for training Identification of training agencies Identification of skills required Training courses designed Training batches Establishment of training centers Training placement

22. Industry Manpower Requirement Form

23. Unemployed Youth Registration Form

24. Unemployed Youth Registration Form – Cont..

25. Urban youth at learning and working Hospitality Hotel Management IT Enabled Services Accounting

26. Trainees registering with the biometric machines

27. Photo identity of the trainees

28. Urban Self Employment Programme(USEP) Target : Individual urban poor Provision: For setting up gainful self employment ventures and Micro Enterprise. Financial outlay: up to Rs.200,000 per unit (including 25% subsidy) Achievement : 34,005 units so far Target (2011-12 ) : 10,000 units

29. Urban Women Self Employment Programme(UWSP) Target: Women self help groups (SHGs) Aim: Setting up of sustainable industrial/business units. Objective: To improve SHGs’ economic and managerial capacities. Financial outlay: up to Rs.900,000 including 35% subsidy. Target (2011-12): 2,500 units

30. Urban Wage Employment Programme (UWEP) To create: Assets to the urban community and to provide employment to urban poor. Assets : Community Resource Centers, Roads, Drains, water supply pipe lines Objective: Assets would be created and owned by the community. Each work Comprising : Not less than 40% of the labor component and balance will be material component. Financial Assistance: Up to 51 lakhs per project Achievement: Construction of 352 Community Resource Centers

31. Self Help Group - Bank linkage (Micro Finance) • Formation of Community Organisations • For socio economic development • Empowerment of women. • Inculcating thrift and credit among themselves. • Strength: 250,000 groups with 2.5 mn members • Corpus: Rs 0.474 billion • Extending Bank Linkage: • To meet immediate financial needs • To start income generating activities • Bank loan ranging from Rs. 75000 to Rs. 500000 per SHG • Achievement: • Rs.5 billion so far and stood first in the country in SHG Bank Linkage. • Target for 2011-12: Rs.1.6 billion • Total Financial Inclusion Model (TFI): • Providing assistance to the SHGs for debt swapping and to enhance their economic base. • Ultimate Aim: • To relieve them from the clutches of money lenders and private Micro financial institutions.

32. Social infrastructure under IHSDP of JnNURM • As part of the housing projects, following social infrastructure created to cater the needs of urban poor under Integrated Housing and Slum Development Program (IHSDP). -Livelihood centers -Community halls -Elementary schools -Anganwadis (Play schools) -Public Health centers -Informal Markets -Rickshaw sheds -Multi functional utility centers. • So far constructed 253 social infrastructural facility centers with an amount of Rs.533 million

33. Impact on urban poor • Placement linked skill trainings • Collectivization of Urban poor and Empowerment of Women • Self Managed Vibrant CBOs of urban poor to demand the services. • Transformation of urban society is catalyzing the growth of the state GDP. • The Public Private Partnership arrangement leveraging the Resources - Finance, Trainee and know how – is a novel and sustainable way of livelihood promotion.

34. Way forward • Increased numbers for training for covering all urban poor for skill based training • Covering all urban households for gainful employment and self employment • Improving skill base at all levels for improving productivity of work force

35. Thank You