About 10 to 15 million new jobs are expected to be created in India in 2011 thanks to rapid economic growth, fuelling demand for skilled labour.
But 75 per cent of these new jobs will require vocational training to enhance the employability wrapper, and if not addressed properly, it can lead to a slowdown in economic growth, warns a report by the Associated Chambers of Commerce and Industry of India (Assocham).
According to D.S. Rawat, secretary-general, Assocham, 2011 is likely to be a boom year for skilled workers in the IT and ITES, biotechnology and services sectors. They can expect a 30 to 40 per cent growth in salaries, as against the 15 per cent hike in 2010.
Salaries are going through the roof as employers are trying to catch up with highly-skilled manpower in these sectors. Companies are not only facing the problem of retention, but there is a clear shortage of qualified and skilled manpower. Sectors such as IT/ITES, academics, engineering, HR, hospitality, insurance and biotechnology are witnessing a shortage of skilled manpower, says the Assocham report.
About 90 per cent of the current jobs in these sectors are skills-based and require vocational and management training, but only six per cent of the employees receive any form of vocational training.
The IT/ITES industry, which provides direct employment to 2.23 million workers and indirect employment to eight million people, will be experiencing an acute shortage of skilled manpower. Salaries in this sector are expected to grow at 30-40 per cent during 2011.
But the report also finds that though India has a huge youth population, there are large numbers of young who are not only unemployed, but are unemployable because of lack of training and skills.
The skills shortage spans all levels from management to front-line operations, and all sectors from IT to fast food.