Economic reforms help employability gain ground

NEW DELHI: The concept of "employability" has recently gained ground in the corporate world in the wake of economic reforms, and the emerging tendency towards

public-private partnerships, according to a CII-TISS report.

Business enterprises have been trying to develop competitiveness in the globalized environment by focusing on labour flexibility through multiskilling, high performance work systems, increased productivity, adaptability and innovation of new products and services.

CII had commissioned Tata Institute of Social Sciences (TISS) to conduct a

detailed study on "Livelihoods, Employment and Sustainable Development". The study covers districts of Nashik, Aurangabad, Nagpur, Kolhapur, Ahmednagar and Pune.

The study looks at issues of current economic activities and growth potential, employment potential delineated by sectors, regions, gender and social groups, the changing nature of work and the extent and upgradation of skills required in the potential growth areas of the economy.

Maharashtra has consistently shown higher real per capita income than any

other state. However the average annual percentage growth in Real Per Capita

NSDP/NNP over a span of 1994-95 to 2003-04 reveals a different picture.

The annual percentage growth for Maharashtra at 3.16 per cent is considerably

lower than ALL India average of 4.38 per cent. The State's ranking in terms

of trend growth in real income declined considerably during this period

(ranked 11th amongst the 15 major India states.)

Despite improvements in the pace of economic growth, primary sector continues to be the main source of employment. Nearly 77 percent of rural labor force continues to be employed in this sector.

The secondary and tertiary sector activities are yet to penetrate rural economy. The secondary sector has grown steadily since 1990's, however the share of workers has

stagnated at 35%. The report suggests that the labour market in Maharashtra

continues to be segmented both geographically as well as Sectoral.

A perusal of the social expenditures in the economic reform years shows that

share of social sector expenditure as a percent of NSDP (1993-94 %) on an

average, has been around five percent.

Share of State income devoted to education sector has been around 3-4 percent. It is a disturbing note that 24 percent male, 32 percent female and 27.4 per cent in the ST group in the age group who have completed graduation level through general faculties, are unemployed in the State. Similar high proportions are reported for 25-30

years age group.This vindicates the lack of congruence between job

opportunities available and the employability of those with basic skills in

Maharashtra.

The study recommends setting up of a full-fledged Labour Market Information

Cell, setting up of Service Training Institutes and to restructure

Vocational Training Institutes.

These recommendations have been made to enhance the quality, utility and effectiveness of the youth entering the workforce in the context of the changing technologies in the labour market scenario.