Skill Development - Only Way Forward

Probably, 30 or 40 years back a simple degree such as a B.A, B.Com or B.Sc might have fetched a job for many candidates. But, now the situation is quite different and many students with M.B.A, M.Com or even engineering degrees are finding it very difficult to get a job.

Today, in the competitive job market, merely having a graduate or post-graduate degree is not enough to get a decent job. A recent study shows that the employability of Indian Graduates and Post-Graduates remains a big concern and, on an average, only 25% of fresh graduates and post-graduates are employable. The main reason for this problem lies in not having additional skills.

Students need to have a proper knowledge and additional competencies rather than just a degree or post-graduation to face the strong competition in the job market. These days, employers also prefer candidates with additional practical skill sets. Students generally don’t have an idea about the available options of professional certifications or diplomas that will boost the value of their basic academic qualification. The current scenario in the country can be summarized as below:

  • As per the AICTE report, 60% of 8 lakh engineering graduates from various institutions across the country every year remain unemployed;
  • 90% of the jobs are skill based and only 2% of the population (in the age group of 15-25 years) is currently engaged in some sort of skill training and this ratio is 60%-80% worldwide.
  • In India, only 4% of the workforce is skilled, while China has 47%, Germany 74%, Japan 80% and the highest being South Korea at 96%.
  • The paradoxical situation on the ground today is that more than 30 lakh graduates join the Indian Job market annually, but only 5 lakh are considered employable. This gap between skills and employment will turn out to be a major hurdle to our economic growth.
  • The harsh ground reality is that desperate Indian Graduates now don’t mind to do any job such as drivers, maids or mechanics. Recently, Graduates, Post-graduates and even Phd holders are among the 23 lakh applicants who applied for 368 posts of Peons in U.P Government secretariat. In fact, there were 1,50,000 graduates, 25,000 Post-graduates and 255 Phd holders were among the applicants and the desired qualification for the job was pass in 5th class.
  • Skill intensive industries are expected to contribute more than 90% of India’s GDP by 2030 and the opportunity is staring at us in the face.
  • The answer to the above problems is skill development. If students during their graduation or postgraduation or immediately after their study invest in additional skill development, they can improve their chances of employability. Among various options, BFSI is one sector where lot of certifications are available which provide lot of career options.