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April 22, 2018

MSDE asked sector skill councils to ensure jobs by industry, may withheld fund allocation if no improvements in hiring

New Delhi: The government has asked industry to provide jobs to personnel trained in their respective sector skill councils, warning that future fund allocation to the council will be withheld and unutilized money will be taken back if there is no increase in hiring.

The push comes ahead of general elections scheduled in 2019, where the slow pace of job creation could be a big issue. The Ministry of Skill Development & Entrepreneurship, which funds the sector skill councils through the National Skill Development Corporation, has told them to ensure that their industry partners provide jobs to people who have been trained and that these numbers must be reflected on the smart portal created for the purpose.

The skill development ministry funds the centrally sponsored Pradhan Mantri Kaushal Vikas Yojana, which is the flagship scheme for skill training. The allocation for FY18 was about Rs 3,000 crore compared with Rs 1,000 crore allotted in FY16.

Explaining the rationale behind the move, a senior government official said that the industry running a particular sector skill council is responsible for setting standards, training and giving certificates to trained individuals. “If they can’t absorb their own trained people, who will do the task of providing jobs?” the official asked.

The skill councils have reluctantly agreed to take on board the government’s concern. “The hasty move has compelled the industry driven sector skill councils to take on the challenge even when providing jobs is not the mandate of the councils,” officials from various sector skill councils told ET. “There is a huge mismatch between demand and supply in the job roles as a result of which industry is finding it difficult to absorb most of the trained people.”

The pace of job creation in India fell to a six-year low in 2015 at 1.35 lakh compared with 4.21 lakh new jobs in 2014 and 4.19 lakh in 2013, according to a quarterly survey of industries conducted by the labor bureau under the Ministry of Labour and Employment, even after the launch of the Skill India Mission. The survey tracks jobs creation in select sectors. Another study – the Fifth Annual Employment-Unemployment Survey – of households conducted by the labor bureau showed the unemployment rate rising to a five-year high of 5% in 2015-16 compared with 4.9% in 2013-14 and 4.7% in 2012-13.

Sector skill councils are autonomous industry-led bodies that create occupational standards and qualification bodies, develop competency frameworks, conduct train-the-trainer programmes, conduct skill gap studies and assess and certify trainees.

Note: News shared for public awareness with reference from the information provided at online news portals.

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