India, with its vast and youthful population, is at a critical juncture! We are one of the youngest nations of the world but our unemployment numbers are concerning too. The demographic dividend, which began around 2005-06, offers a unique opportunity that is expected to last until the mid-2050s. By 2047, India is projected to have 1.1 billion people in the working-age group (15-64 years), a peak that could significantly influence the country’s economic trajectory. However, this potential can only be fully realised if the workforce is adequately skilled and employable.
The current employment rate is 8%, and the number of job seekers has risen from 33 million in 2016-17 to 36.9 million in 2023-24. In this context, upskilling the youth can secure jobs and enhance income, especially for those in low-paying and unstable jobs.
Understanding the Current Landscape
The economic challenges India faces today have been exacerbated by the COVID-19 pandemic, which severely disrupted job markets. According to the Centre for Monitoring the Indian Economy (CMIE), the pandemic-induced lockdown in April 2020 pushed the unemployment rate to a staggering 23.5%. Although the situation has improved, with unemployment rates stabilising around 9.2% by mid-2024, the job market remains precarious, particularly for those with low skills. Additionally, rising inflation and escalating costs of essentials like education, healthcare, and housing make upskilling a necessity for economic survival.
Though India’s livelihood market is vast and varied, the majority of this market is informal, with over 90% of the workforce employed in the informal sector, according to the National Sample Survey Office (NSSO). Workers in these sectors often lack formal education and technical skills, which limits their ability to secure stable, well-paying jobs.
The government of India introduced the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), a programme providing skill training to youth across India. While the government and private sector have launched several skill development initiatives to address this gap, these programmes often fail to reach the most vulnerable populations, particularly those in rural areas. This is where targeted upskilling initiatives become important, as they aim to bridge the skills gap by providing access to training for those who need it most.
Why is Upskilling Necessary?
The need for upskilling, the process of acquiring new skills or enhancing existing ones, cannot be overstated in today’s rapidly evolving job market. Here’s why:
1. Job Security: Automation and technological advancements are rendering many traditional jobs obsolete. Upskilling enables workers to adapt to new technologies, ensuring their relevance in the job market.
2. Increased Earnings: Skilled workers typically earn more than their unskilled counterparts. For example, a World Economic Forum study found that individuals who participated in skill development programs experienced an average wage increase of 30%.
3. Career Advancement: Upskilling opens doors to career growth by enabling workers to take on more responsibilities and move into higher-paying roles.
4. Adaptability: In a fast-changing job market, adaptability is key. Upskilling the youth equips workers with the skills needed to navigate industry changes effectively.
The Impact of Upskilling the Youth on Individuals and Communities
Upskilling has substantial impact on individuals and their entire communities. Skilled workers are significantly more productive than their unskilled counterparts. This increase in productivity can contribute to the overall efficiency of their industries, as well as lead to economic growth.
As individuals increase their earning potential, they can invest more in their families, improving access to education, healthcare, and overall quality of life. As workers become more skilled, their enhanced capabilities contribute to a stronger, more resilient economy, capable of withstanding external shocks such as economic downturns or pandemics.
Bringing Training to the Doorstep
One of the biggest challenges in upskilling is reaching those in remote or underserved areas who lack access to formal training programs. Traditional training centers are often located in urban areas, making it difficult for rural populations to access these opportunities due to distance, cost, or lack of awareness. This is where innovative approaches to upskilling, such as mobile training units, come into play.
These units travel to remote locations, offering training in high-demand trades. They also offer tailored counseling sessions, engagement programs, and real-world experience, giving trainees the tools and guidance they need to unlock their potential. By creating a nurturing environment, these initiatives help individuals explore their capabilities, ultimately leading to better job opportunities and financial stability.
What Smile Foundation is Doing?
Smile Foundation’s skilling and livelihood programme, STeP (Smile Twin e-Learning Progrmame) helps disadvantaged youth gain skills and access jobs in high-growth sectors. Aligned with the Government of India’s ‘Skill India’ initiative, the programme offers specialised training, counseling, and hands-on experience to equip low/no-income individuals with in-demand skills. Intending to create lasting change, we reach out to marginalised communities across India, ensuring that they have access to opportunities that can improve their lives.
In partnership with Berger Paints India, Smile Foundation runs the iTrain on Wheels programme. This initiative upskills young and existing painters, teaching them contemporary techniques and entrepreneurial skills. The programme uses mobile training vans to reach 100+ remote sites across 24 states, having already trained over 94,333 painters. By bringing the training directly to the community, this approach helps underutilised youth overcome barriers, adapt to the changing job market, and secure meaningful employment, enabling them to become active contributors to the country’s economic growth.
Upskilling the Youth as a Pathway to Economic Resilience
By equipping individuals with the skills they need to secure better-paying jobs and adapt to industry changes, upskilling can help reduce unemployment and improve living standards for millions of people. The benefits extend beyond individuals, positively impacting entire communities. With a vast and growing working-age population, upskilling can unlock new opportunities, secure financial stability, and contribute to the country’s economic growth.