Black & white of Apprenticeship - Oct Newsletter

OCTOBER 2021

Editorial INDEX EDITORIAL _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 3 COVER STORY (Black & white of apprenticeship)_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 4 - 8 DISCUSSION (Democraphic dividend of india) __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 9 - 13 FEATURED POST (Glimpses of success)_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _14 - 15 INVITING PARTNERS_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 16 EFOS EDUMARKETERS PVT LTD 2021 2 OCTOBER 2021

Team EFOS.in Editorial Founder EDITORIAL Sachin Jain - [email protected] Unemployment is the buzz word in our country but even in the vast ocean of unemployed people; we do not get the right type of person- Co-Founder nel for doing right jobs. We find that there is as much surplus of manpower and there is shortage also. There are a number of jobs Ranjan Singh - [email protected] going vacant due to shortage of right personnel. Dr. Akansha Jain - [email protected] This problem of unemployment has so deep penetration that the solution to it lies with inculcation of the required skillset amongst Operations Team the candidates so that they are employable and also there should be career progression path for the candidates in the job so that they Anup Kumar can grow and progress in their career life. Shashi Singh Apprenticeships contribute towards the development of skills by Abhishek Dixit providing opportunities for work and study. They can serve as part Sachit Sharma of your journey to a meaningful career. Apprenticeships can be a Praveen Kumar possible solution for this problem of mismatch between the candi- Faisal Khan dates and industry demand. If we can structure the roll out properly, Ankit Singh and use apprenticeship effectively, to integrate the education, skill Govind Gupta and the employment world, the twin problem of employability for Parth Sharma the youth and a ready to employ skilled force for the industry can be Nutan Chaudhary resolved to a large extent and India can well and truly be on its way Kanchan Mamgain to becoming the global skill capital. Afroz Rasheed Another serious issue which our country is heading is about demo- Praveen Yadav graphic dividend advantage that in entry level jobs most of the Noman Ahmed companies in India are hiring the 18-35 age group for entry level job Rajdeep Singh and most of these jobs are private or contractual in nature. Once the Prince Gautam contract finishes and person gets out of the job there is very less Namita Chauhan chance for getting new job. Also, there is no career progression in Anupam Rathore these entry level jobs and when a person get aged what he will do? Pratima Employers have just closed their eyes to this bitter truth that this Deepak segment when mature with age and have physical limitations will be Manish easily replaced by upcoming energetic population who will be Shubham waiting with energy to enter job market after 10-15 years from now Jyoti onwards leading this segment jobless. Khushbu So, in order to reap the demographic dividend, proper investment in Aarozoo human capital is needed by focusing on education, skill develop- ment and healthcare facilities. Admin accounts Dr. Akansha Jain Amit Kumar Editor Gaurav Yadav Creative Designer Garima Garg In Association With S 3OCTOBER 2021 COLORING INNOVATIONS . . . EwPwINwF.eOpWinAfYoSwPayVsT..cLoTmD

Cover Story APPRBElaNckTanIdCWEhSitHe oIfP and Related Schemes The education world and the apprenticeship world have coexisted in India for nearly 6 decades; the skill world has also been around for more than 20 years now. And yet the industry says it doesn’t get manpower who they find ready to deploy without incurring expenditure on post recruit- ment training, and employability for most youngsters after graduation remains an issue. If there is a connector which can stitch all of this together, it is apprenticeship. What is the first thought that comes to your mind when you think of apprenticeship? Is it cheap labour, manual work, low wages or alternate education for students who are not regular school-goers? Apprenticeship in India means a system of training in which an employer engag- es a person as an apprentice to train him/her systematically in the designated trade for the respective period prescribed under the Apprentices Act. Apprentic- es are trained during their apprenticeship program to immediately get into the role of employees as they are formally trained on the job and certified for a partic- ular industry. 4 OCTOBER 2021

Cover Story TYPES OF JOBS IN INDIA The Indian National Apprenticeship Scheme began in 1959 on a voluntary basis. However, the Scheme did not achieve the expected results, and the Apprentice- ship Scheme was brought under the ambit of the Apprentices Act in 1961 that was implemented in 1962. PRIMARY OBJECTIVES : To regulate the programme of training of apprentices in the industry so as to con- form to the prescribed syllabi, period of training, etc., as laid down by the Central Apprenticeship Council. To utilize fully the facilities available in industry for imparting practical training with a view to meeting the requirements of skilled manpower for industry NAPS was launched on 19th August 2016. The main objective of the scheme is to promote apprenticeship training and to increase the engagement of apprentic- es. The scheme covers all categories of apprentices except apprentices which are covered by the scheme administered by MHRD i.e. National Apprenticeship Train- ing Scheme (NATS). Under NAPS scheme, courses under PMKVY, Modular Employ- able Skill (MES), Skill Development Initiative (SDI) of erstwhile DGE&T or courses approved by State Government/Central Government are linked with Apprentice- ship Training. All these courses are given status of optional trades & the relevant practical content for on-the-job training is added by respective course approving authority. A specially designed online portal ‘www. apprenticeshipindia.org’ is used for administering the entire implementation of the Apprenticeship Training KEY COMPONENTS : 1. Sharing of 25% of the prescribed stipend, subject to a maximum of INR 1,500 per month per apprentice per month to the employer 2. Sharing of cost of basic training with Basic Training Providers (BTP); up to INR 7,500 per trainee for a maximum of 500 hours calculated @ INR 15 per hour CATEGORIES OF APPRENTICES: 1. Trade Apprentices, 2. Graduate Apprentices, 3. Technician Apprentices 4. Technician (Vocational) Apprentices 5OCTOBER 2021

Cover Story As per Annual Report of Ministry of Skill Development & Entrepreneurship (2017-18), more than 80% of the apprentices are from ITI ecosystem. More than 89% of the overall apprentices engaged are from the engineering sectors. Services sector holds a lot of promise and has largely remained untapped. The data from the 'Stipend Primer - Post-Pandemic Special' report of TeamLease Skills University’s National Employability Through Apprenticeship Programme (NETAP) found that average stipends for apprentices had risen from Rs 11,860 a month in 2019 to Rs 12,200 in 2020. Currently there are 24,884 establishment engaging 2.42 lakh apprentices in both designated and optional trade. As per the provision under NAPS, the government reimburses 25% of the stipend amount to be paid to apprentices per month sub- ject to a maximum of Rs 1500 per month. NEEM Scheme or the National Employability Enhancement Scheme as it is oth- erwise called is a joint initiative taken by the Government of India and All India Council for Technical Education ( AICTE). The scheme was pioneered with an aim to address the shortage of skilled labour in India by producing skilled labours. The training under NEEM should be for a minimum period of 3 months and can last as long as 3 years. The training must be compliant with National Skills Qualifications Framework (NSQF). The objective of this initiative is to develop a competent workforce by enabling trainees to understand the nuances of a real work atmosphere through on-the-job training approaches. They are also given the opportunity to earn while they learn and gain exposure to multiple sectors. Till 2019, 43 facilitators across twelve states were approved by the AICTE, and more than 4 Lakh trainees have enrolled under NEEM in these twelve states. Apprenticeships typically are considered the training ground for blue-collar indus- tries such as manufacturing and construction, but in recent years the scene is quite different. For blue collar, apprenticeship has become a game and people are employed as apprentices are just the for the sake of training, they generally work as regular employees in the company and there is no scenario of training and also company save a big chunk of money by not covering in the labor laws. These all schemes are just for the benefit of employers and used as money saving mechanism by employ- ers. The apprentice in blue collar has no career progression, Candidates are generally thrown out after completion of so called training program and is replaced by new apprentice as these apprentices are paid less and full workload with govt support also which a permanent employee does is being allocated to them. 6 OCTOBER 2021

Cover Story THE ACTUAL SCENARIO Ideally, in an apprenticeship, most of the training is done while working for an employer who helps apprentices learn their trade, in exchange for their contin- ued labour for an agreed period after they have achieved measurable competen- cies for stipends averaging ₹12,000-15,000 a month. The period of apprentice- ships can vary from 6 months to a few years across sectors, those who successful- ly complete an apprenticeship are certified and are offered permanent jobs at the companies where they apprenticed. But the situation is completely different. Employers are taking advantage of apprenticeship to get low cost labour who perform work as full time employee. Salary is paid as per minimum wages and govt also contribute around Rs 1500 in their salary bringing additional advantage to employer. After completion of apprenticeship duration, apprentice is asked to leave job and new apprentice is hire which is cost effective for companies. • Apprenticeship is an avenue for companies to procure low-cost labor. Companies use appren- ticeships to procure labour at low cost and are less interested in investing in apprentice’s skills • Apprenticeships are generally for the building/construction trades and for Non-academics • Replacing jobs of permanent nature with short-duration temporary jobs, with fixed, meagre compensation, naming it as skill development/ training is not that noble and simple. • Participation, both of employers, and of workers, is very low compared with other countries. • Stipend rates for apprentices are very low. They can be paid 25% less than Minimum Wages and Employer also take advantage of PF/ESI and Labor Laws like bonus, gratuity, permanent employee benefits and others • There are high levels of regulatory requirements for employers and associated penalties for non-compliance • There is a shortage of trained teachers and trainers. • There is little coverage of trades in the service sector, which has high employment potential. In this sector Apprenticeship make more sense because there is proper growth plan available. • Many of the times in Blue Collar segment people work 10-12 hours a day, there is only 4 monthly off, in this scenario there is no possibility of any learning happening. • There are low rates of employment after completion of apprenticeship. This should also be critically measured that how many apprenticeships absorbed after completion for full time employment. • There is a lack of vertical mobility of apprentices into higher-level qualifications • Largely it is happening in the manufacturing sector where it is used as a tool of saving money and there is no training 7OCTOBER 2021

Cover Story Concluding Remark Govt is spending CSR on providing stipends to candidates and offering incen- tives to employers. Training cost is also being provided to employers by govt without even checking the actual scenario that whether training is going on or not. Despite of huge expenditure on this scheme, there is no real outcome as there is not actual placement of employees. All of this money which is used in Manufacturing Sector is going as direct bene- fit to the EMPLOYER which is actually not needed. “NO EMPLOYER WILL EVER HIRE A SINGLE CANDIDATE in Manufacturing Sector if IT DO NOT HAVE WORK FOR EMPLOYEE ” WHY TO GIVE TAX PAYERS MONEY/PUBLIC MONEY TO THESE EMPLOYERS ON THE NAME OF TRAINING/ APPRENTICESHIP. The focus on apprenticeship embedded degree programs could not have been better timed and is the next logical step forward. If we can structure the roll out properly, and use apprenticeship effectively, to integrate the education, skill and the employment world, the twin problem of employability for the youth and a ready to employ skilled force for the industry can be resolved to a large extent and India can well and truly be on its way to becoming the global skill capital. EFOS RECOMMENDATIONS Govt should ease the labor laws so that Employers are encourage to hire more permanent employees and also stop incentivizing these type of schemes which only benefits employers and kind of exploitation to the employees. - Long term apprenticeship in Manufacturing should be stopped, it should be maxi- mum 3 months to stop exploitation of candidates - Long term apprenticeships should be in only highly skilled trades where there is a career path is available with at least 50% assurance of in house joining after appren- ticeship. - Long term internship can also be planned with Vertical mobility in Higher Education, where candidate is working maximum 8-9 hour shift and have at least 2 hours which he can utilize for his higher education and can later be move to other things also. - Long term Internships can work very well in Service Sector which is facing huge chal- lenge of entry level manpower, they can hire intern and can plan a regulated Training Program before or also it can be linked to Higher Education up to PG level. - Another Model for Manufacturing or blue collar job which can reap real fruits can be Recruit Train and Hire (there can be 1-2 months of basic training program and 1-2 months of apprenticeship). 8 OCTOBER 2021

CONTEXT Discussion DEMOGRAPHIC DIVIDEND OF INDIA A cause of concern for entry level workers How long India will have Demographic dividend Advantage ?? People in Age group of 18-35 years in year 2021 will be in age group 35-50 years in year 2035 and will be competing with almost double population in the age group of 18-35 years. As Most of the jobs are Temporary in Nature and does not require specific skills set it will be difficult to survive in job market for aged people. It will create complete chaos and it will lead to social disaster. India has around 35% of its population in the age group of 18-35 years which is ever increasing and will be at the peak around 2036. Most of the companies are hiring 18-35 age group for entry level job Most of jobs are contractual/private job with no security in nature and once person gets out of the job there is very less chance for getting new jobs There is no career progression in blue collar level jobs and when a person get aged what he will do? A person who is stuck at age group of 30-50 who has no idea about how to re-start career again will be unable to succeed if not skilled Social challenges like getting married, family plans, social life also will arise in life if they are not skilled and have no job. This will lead to depression amongst the youth and is scariest situation. What will happen after another 10-15 years when crores of people with age more than 35 will be available in job market without skills and competing with 18-35 age group 9OCTOBER 2021

Discussion WHAT ACTUALLY IS DEMOGRAPHIC DIVIDEND ? According to United Nations Population Fund (UNFPA), demographic dividend means, \"the economic growth potential that can result from shifts in a popula- tion’s age structure, mainly when the share of the working-age population (15 to 64) is larger than the non-working-age share of the population (14 and younger, and 65 and older)\". DEMOGRAPHIC DIVIDEND IN INDIA India has one of the youngest populations in an aging world Since 2018, India’s working-age population (people between 15 and 64 years of age) has grown larger than the dependant population — children aged 14 or below as well as people above 65 years of age. This bulge in the working-age population is going to last till 2055, or 37 years from its beginning. India is undergoing a major demographic transition. The working-age ratio in India’s population is projected to increase to 69 per cent in 2040 – an addition of more than 300 million adults of working-age population. ENTRY LEVEL JOBS SCENARIO IN INDIA The blue-collar economy is critical for achieving India’s vision of a $5 trillion economy with inclusive growth. Almost 40% of the Indian workforce (roughly 20 crore people) are engaged in entry-level non-farm employment with low academic qualifications If we talk about the entry level jobs most of the companies in India are hiring the 18-35 age group for entry level job and most of these jobs are private or contractual in nature. Once the contract finishes and person gets out of the job there is very less chance for getting new job. Also, there is no career progres- sion in these entry level jobs and when a person get aged what he will do? The 63-lakh plus micro, small, and medium enterprises that form the back- bone of Indian industry employ 12 crore people who are largely entry level jobs. The Economic Survey 2020-21 shows that of the working age population, almost 95% have not received formal vocational/technical training. Trained blue-collar economy is required to not only maintain the growth momentum but also to make the Indian economic story more equitable. 10 OCTOBER 2021

Discussion Generally, the entry level jobs in which majority of our working population is working comprises of delivery boy jobs, warehouse job, telecaller, machine operator, drivers, retail outlets job etc. Now the challenge which lies in these job profiles is that they comprise of doing monotonous tasks and no such skill is required in doing that task. There is no career growth in such professions and also salary range is fixed without much growth. In our country majority of working age population is engaged in such profiles. When a person reaches age group of 30-50 and he is out of job for any reason and if he wishes to reenter the job it will be very difficult for him to re-start career again. Also after another 10-15 years when crores of people with age more than 35 will be available in job market without skills and competing with 18-35 age group because of demographic factor, there are full chances that this segment will be replaced with the new generation population. If this segment will be out of job, they won’t be able to reenter the job market as they were busy doing the monotonous work and have never focused on upskilling or reskilling. Social challenges like getting married, family plans, social life also will arise in life if they are not skilled and have no job. This will lead to depression amongst the youth and is scariest situation. Employers in our country are hardly focusing on it. They are deploying the can- didates on these profiles and are not coming up with any models where there can be career growth for such profiles also. Employers have just closed their eyes to this bitter truth that this segment when mature with age and have phys- ical limitations will be easily replaced by upcoming energetic population who will be waiting with energy to enter job market after 10-15 years from now onwards leading this segment jobless. Challenges which will appear after 10-15 years from now Demographic transition also brings complex challenges with it. If the increased workforce is not sufficiently skilled, educated and provided gainful employ- ment, we would be facing demographic disaster instead. 11OCTOBER 2021

Discussion 1) Employers are not concerned about the career progression of their employ- ees which will leave employees in age group 35+ without any additional advan- tage to be in job as compared to young energetic youth waiting in pipeline with fresh skills. 2) There is no reskilling and upskilling initiatives by the employer and entry level job employees are deployed in monotonous jobs by employers which will create feeling of exhaustion as they will not be able to cope with dynamic envi- ronment. 3) Most of the new jobs that will be created in the future will be highly skilled and lack of skill in Indian workforce is a major challenge. 4) India may not be able to take advantage of the opportunities of future due to a low human capital base and lack of skills. 5) Social challenges will emerge as people who will be replaced by younger pop- ulation will not be able to handle the situation as they have dependents on them and it will be very tough or even impossible to reenter into job 6) Depression and social anxiety will prevail amongst this segment as they won’t be able to find any direction in their career. 7) Social problems like getting married, family planning etc will start arising as this segment will not have enough resources to move ahead in life. 8) Future growth could turn out to be jobless due to de-industrialization, de-glo- balization, the fourth industrial revolution and technological progress. As per the NSSO Periodic Labour Force Survey 2017-18, India’s labour force participa- tion rate for the age-group 15-59 years is around 53%, that is, around half of the working age population is jobless. 9) India ranks 130 out of 189 countries in UNDP’s Human Development Index, What needs to be done? Building human capital: Investing in people through healthcare, quality edu- cation, jobs and skills helps build human capital, which is key to supporting eco- nomic growth, ending extreme poverty, and creating a more inclusive society. Employers should come up models in which there is job security and has focus on career progression of its employees that they cannot be replaced by fresh talent easily. Focusing on upskilling and reskilling can be a solution to the problem. 12 OCTOBER 2021

Discussion Skill development to increase employability of young population. India’s labor force needs to be empowered with the right skills for the modern economy. Better Education: Enhancing educational levels by properly investing in prima- ry, secondary and higher education. India, which has almost 41% of population below the age of 20 years, can reap the demographic dividend only if with a better education system. Academic-industry collaboration is necessary to synchronize modern indus- try demands and learning levels in academics. More job opportunities should be created so that the ever increasing popula- tion and existing population can both have opportunities and there is no replacement scenario. Companies should focus on building career for its employee/vendors employ- ees. To sum up, in order to reap the demographic dividend, proper invest- ment in human capital is needed by focusing on education, skill develop- ment and healthcare facili- ties. It is high time to capitalize on the potential of our demographic dividend before we become an ageing society in 2055-56. Seeking to correct these problems of the labor market can help in formalizing the Indian economy, in turn working towards the Sustainable Development Goals of decent work, reduced inequality, and economic growth. This is the right time to learn from global approaches from countries such as Japan and Korea and designing solutions considering the domestic complexi- ties, we would be able to reap the benefits of demographic dividend. 13OCTOBER 2021

Featured Post EFOS initiative - Mission Job ‘Let’s provide independence to youth by connecting them to right career path and help them add colours in their life by making them earn their livelihood’ Bringing smiles to needy and changing lives of people is what mission job is!!! EFOS.in initiative mission job is on a mission to help our youth have saffron (prosperous), white (peace) and green (progressive) life and have smiles on their faces. It aims to connect with last mile opportunity seeker and provide them with required skill set through training of 10 days and getting them placed. There lie huge challenges for youth of rural areas to get into job. We aim at handholding and providing resources to our training partners/ centres so that they can improve communication skills, personality and domain knowledge of students in short span of time so that they get placed immediately. This is life changing opportunity for rural youth as this platform makes them employable and also employed. It is 100 % assured job training program for candidates in Tier2/Tier 3 Cities. It is one more the most promising program which EFOS.in brings for the candi- dates for the Partner Centers. Let’s take a pledge that we are and we will add wings to our last mile youth so they can fly which they deserve to. Some Glimpses of our success stories which are worth sharing 14 OCTOBER 2021

Featured Post 15OCTOBER 2021

.in www.efos.in INVITING PARTNERS FOR EFOS EFOS partners are building blocks of EFOS physical reach out network. * Responsible for eld mobilisation and onboarding of youth on EFOS platform * Can earn ‘revenue’ on successful closure of ‘opportunity’ Key Responsibilities Of EFOS Partners 1. Proactive reach out to local youth, those who are looking for ‘Career and education’ opportunities and seek assistance in plan- ning and choosing for them. 2. Sensitizing and on boarding youth on EFOS portal to access veri- ed opportunities, need based counselling and match making , prompt reach out on availability of matching opportunity. Bene ts Of Being A EFOS Centre Partner 1. One EFOS centre in a district. 2. Low Investment for Franchisee 3. Revenue sharing and incentives by EFOS 4. EFOS support and analytics for led mobilisation For More Details you can CONTACT on 8744050874 or Mail to [email protected]