{"id":61964,"date":"2025-12-17T18:14:57","date_gmt":"2025-12-17T12:44:57","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=61964"},"modified":"2025-12-18T18:08:36","modified_gmt":"2025-12-18T12:38:36","slug":"ncaer-skilled-workforce-rise","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/17-12-2025\/ncaer-skilled-workforce-rise","title":{"rendered":"NCAER Reports Rise in Skilled Workforce"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/ Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The National Council of Applied Economic Research (NCAER) released the report \u201cIndia\u2019s Employment Prospects: Pathways to Jobs\u201d, Underlining the role of skilling and small enterprises as key drivers of job creation in the country.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Findings of the Report<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Employment Trends: <\/strong>India\u2019s self-employment dominance is due to economic necessity rather than entrepreneurial dynamism as most of the small enterprises function at subsistence level.<\/li>\n\n\n\n<li><strong>Workforce Composition: <\/strong>India\u2019s workforce could benefit greatly from upskilling, particularly with the advent of new technologies and AI.\n<ul class=\"wp-block-list\">\n<li>Medium-skilled jobs dominate employment growth, especially in services, whereas manufacturing remains low-skill intensive.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Increasing the skilled workforce share by:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>9 percentage points <\/strong>could generate 9.3 million jobs by 2030.<\/li>\n\n\n\n<li><strong>12 percentage points<\/strong> could raise employment in labour-intensive sectors by over 13% by 2030.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Role of Small Enterprises: <\/strong>Productivity of India\u2019s smallest enterprises is central to the country\u2019s employment future.\n<ul class=\"wp-block-list\">\n<li>Enterprises using digital technologies employ <strong>78%<\/strong> more workers than non-digital firms. A <strong>1% increase <\/strong>in access to credit raises the expected number of hired workers by <strong>45%<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What are the Challenges?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Informal enterprises<\/strong> dominate India\u2019s economy, especially Own Account Enterprises (OAEs) that do not hire workers.\n<ul class=\"wp-block-list\">\n<li>A 10% increase in GVA in informal enterprises can lead to a 4.5% rise in hired workers.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Low Coverage of Formal Training:<\/strong> As of 2024, only <strong>4.1%<\/strong> of India\u2019s workforce had received formal vocational training.&nbsp;<\/li>\n\n\n\n<li><strong>Structural Problems in the Skilling System:&nbsp;<\/strong>\n<ul class=\"wp-block-list\">\n<li>Training courses are poorly aligned with industry needs.<\/li>\n\n\n\n<li>Many training centres suffer from low seat utilisation.<\/li>\n\n\n\n<li>Placement outcomes remain weak.<\/li>\n\n\n\n<li>Limited coordination between industry, training providers and state governments.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key government Initiatives&nbsp;<\/strong><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"cfcece\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"534\" height=\"599\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/12\/image-103.png\" alt=\"ncaer reports rise in skilled workforce\" class=\"not-transparent wp-image-61967\" style=\"--dominant-color: #cfcece; aspect-ratio:0.8914975406109206;width:227px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/12\/image-103.png 534w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/12\/image-103-267x300.png 267w\" sizes=\"auto, (max-width: 534px) 100vw, 534px\" \/><\/figure>\n<\/div>\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background has-fixed-layout\" style=\"background-color:#fff2cc\"><tbody><tr><td><strong>National Skill Development Corporation (NSDC)<\/strong><br><br>&#8211; NSDC was established in <strong>2008,<\/strong> as a not-for-profit public limited company under section 25 of the Companies Act, 1956 (now <strong>section 8 of the Companies Act, 2013)<\/strong>.<br>&#8211; It is a Public Private Partnership (PPP) enterprise working under the <strong>Ministry of Skill Development &amp; Entrepreneurship (MSDE),<\/strong> Government of India.&nbsp;<br>&#8211; NSDC aims to <strong>promote skill development by catalyzing creation of large, quality and for-profit vocational<\/strong> institutions.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Policy Recommendations Highlighted in the Report<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Reforming the Skilling Ecosystem:&nbsp;<\/strong>\n<ul class=\"wp-block-list\">\n<li>Shift from supply-driven training to demand-aligned skilling.<\/li>\n\n\n\n<li>Strengthen industry participation and placement-oriented outcomes.<\/li>\n\n\n\n<li>Increase public investment in vocational education.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Demand-Side Employment Strategy:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Prioritise labour-intensive manufacturing sectors such as textiles, garments, footwear, and food processing.<\/li>\n\n\n\n<li>Align industrial incentives with employment multipliers rather than output alone.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Boosting Informal Sector Productivity:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Expand access to formal credit for small and micro enterprises.<\/li>\n\n\n\n<li>Promote digital adoption to improve productivity and hiring capacity.<\/li>\n\n\n\n<li>Enable enterprise graduation from subsistence to growth-oriented models.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.newsonair.gov.in\/ncaer-reports-rise-in-skilled-workforce\/\" target=\"_blank\" rel=\"noopener\"><strong>AIR<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>Context<\/strong><\/p>\n<li class=\"ms-5\">The National Council of Applied Economic Research (NCAER) released the report \u201cIndia\u2019s Employment Prospects: Pathways to Jobs\u201d, Underlining the role of skilling and small enterprises as key drivers of job creation in the country.<\/li>\n<p><\/p>\n<p><strong>Key Findings of the Report<\/strong><\/p>\n<li class=\"ms-5\">Employment Trends: India\u2019s self-employment dominance is due to economic necessity rather than entrepreneurial dynamism as most of the small enterprises function at subsistence level.<\/li>\n<li class=\"ms-5\">Workforce Composition: India\u2019s workforce could benefit greatly from upskilling, particularly with the advent of new technologies and AI.<\/li>\n<li class=\"ms-5\">Medium-skilled jobs dominate employment growth, especially in services, whereas manufacturing remains low-skill intensive.<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/17-12-2025\/ncaer-skilled-workforce-rise\" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-61964","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/61964","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=61964"}],"version-history":[{"count":5,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/61964\/revisions"}],"predecessor-version":[{"id":62061,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/61964\/revisions\/62061"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=61964"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=61964"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=61964"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}