There is a need to re-engineer the skill ecosystem and regularly monitor challenges, such as low absorption of skilled manpower by industry at 36 per cent, as also dropping out of placed candidates due to expectation mismatch, says a FICCI-KPMG paper.

Calling for regular interaction among industry, training institutions and the government to identify the local skill requirement and finetune the training, the paper said what sells most about the success of a programme is the “word of mouth publicity”. The paper comes in the backdrop of the Ministry of Skill Development and Entrepreneurship’s ambitious plan to train 400 million workforce by 2022.

“To prevent post-placement dropouts among the youths, there can be regular monitoring of the following aspects by the institutes: Student’s satisfaction with jobs attained, post-placement counselling and guidance towards acclimatising to new locations, performance tracking and life-cycle skilling,” the paper suggested.

The paper “Re-engineering the skill ecosystem’, released at the FICCI-KPMG Skill Summit 2016 here, also suggested a regular labour market study by the government every two-three years to understand the change in industry requirement, change in skillsets and the job role proficiency required. If need be, the training and curriculum could be fine-tuned, it added.

The paper also highlighted the phenomenon of employment clusters and the regional imbalance in creation of formal jobs.

States such as Maharashtra, Tamil Nadu, Karnataka, Andhra Pradesh and Delhi together provided employment to 57 per cent of the nation’s formal workforce in 2014-15, it said, adding that this fact clearly indicated the high concentration of formal employment in some States.

It said skill development in these States should be based on the existing industry clusters, which should be incentivised to set up establishments in labour-intensive States to arrest internal migration.

The FICCI-KPMG paper also noted an “urgent requirement” for teachers or trainers in skill institutes.

“The current projected demand is pegged at 20,000 teachers per annum against the current training capacity of 2,000 teachers been produced by DGE&T field institutes,” it said, suggesting a potential solution wherein a worker’s career could be structured in such a manner whereby s/he could become a certified teacher after working for a minimum number of years.