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

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 GDP now stands at 1729 billion US dollars India now stands 4 th 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 … 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 KEY SECTORSIncremental Human Resources (million) Building, Construction, Real Estate Auto & Auto Components35.20 Organized Retail17.34 Textiles16.79 Tourism, Travel12.86 Healthcare12.70 Education & Skills Development 5.80 IT & ITES5.30 Leather4.64 Gems & Jewellery4.60 BFSI4.49 Furniture & Furnishing3.34 Electronics/ IT Hardware3.22 Media & Entertainment2.99 Source: NSDC Report on Human Resources and Skill Requirements in various sectors (2022)

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 Poverty No education /school drop out Low / unrecognised skills Uncertain income / no social security  Most of the labour force is not employable −Only 6% of the urban labour force aged 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 Poverty No education /school drop out Market- relevant Skill Development Organised sector employment and social security Improved, stable standard of living  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 million150 million

10 The Planning Commission has identified 20 High Growth Sectors for achieving socio-economic objectives…. 1. Automobile & Auto- components 2. Banking/Insurance & Finance Services 3. Building & Construction Industry 4. Chemicals & Pharmaceuticals 5. Construction Materials / Building Hardware etc 6. Educational & Skill Development Services 7. Electronics hardware 8. Food Processing / Cold Chain / Refrigeration 9. Furniture & Furnishings 10. Gem & Jewelry 11. Health Care Services 12. ITES or Business (BPO) Process Outsourcing 13. ITS or Software Services / Products 14. Leather & Leather goods 15. Media, Entertainment, Broadcasting, Content Creation & Animation 16. Organized Retail 17. Real Estate Services 18. Textiles, Apparel & Garments 19. Tourism, Hospitality & Travel Trade 20. Transportation Logistics, Warehousing & Packaging etc.

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12 State Socio-Economic Profile … Population : 84.6.million 67.66% literacy 31.0 million population in the age group of BPL Population – 12.7 million –6.5 million rural & 6.2 million urban GSDP for 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 ( ) Key SectorsApprox. Size in AP Rs. Cr Growth Rate (CAGR) Drugs and Pharma 17, % IT and ITES16,00025% Construction15,00015% Healthcare12,00018% Fin. Services11, % Engineering11,00015% Textiles10,75016% Agro & Food Processing 9,30010% Tourism8,5009.5% Chemical and Fertilizers 8,4008% Mines & Minerals 7, % Paper2,4008% Biotech56024%

13 Quantitatively the Education & Skills Training Infrastructure in the State is less than adequate 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 Except in the Primary School and Engineering Colleges segment, the number of institutions in all other segments is less than the requirement

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

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 Tourism IT & ITES Drugs & Pharma Textiles Health Care Construction Chemicals & Fertilizers Biotech Agro & Food Processing Engineering Paper Mines & Minerals Financial Services Employment Potential High Low High Competitive Positioning

19 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. Employment generation – AP Interventions

20 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. 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. Skill Training for Employment Promotion amongst Urban Poor( STEP-UP)

Process of training 21 Market scan of companies Identification of skills required Training courses designed Identification of training agencies Establishment of training centers survey for identifying candidates for training Training batches 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 HospitalityHotel 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 ( ) : 10,000 units

29 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 ( ): 2,500 units Urban Women Self Employment Programme (UWSP)

30 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 Urban Wage Employment Programme (UWEP)

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 billion Extending Bank Linkage: To meet immediate financial needs To start income generating activities Bank loan ranging from Rs to Rs per SHG Achievement: Rs.5 billion so far and stood first in the country in SHG Bank Linkage. Target for : 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 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 Social infrastructure under IHSDP of JnNURM

33 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. Impact on urban poor

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