Invest in skills for the future

• Honorable Minister of Skill Development and Entrepreneurship;
• Honorable Secretaries and members of Government;
• ASSOCHAM President, Secretary General and members;
• Respected subject-matter experts and members of the audience,
• All protocols observed:

It is my pleasure to be here at this unique summit that looks at skills and its intrinsic linkages to employment – a crucial thematic focus for the International Labour Organization.

The landscape of skilling is fast-changing. While the pace and extent of the change in future labour markets will vary across countries and across sectors within countries, there is likely to be significant change in the composition of occupations. Existing skills development systems must meet future skills demands. A focus on youth and women is critical. We have to ensure access to skills to the vulnerable – those impacted by globalization, climate change, technological shifts and other factors, so as to enable them to both access and continue to contribute to the labour market and the country’s economy and social development.

Although it is challenging to anticipate the sectors that will create jobs in the future – a robust Labour Market Information System would help us forecast skills needs. For this access to real-time data is critical.

Another challenge is India’s large informal economy. The unorganized sector is the engine of growth in India. The trend we see is that workers face multiple barriers to skill access. And the lack of sought for skills or low skills results in low-productivity and thus low-income jobs. This is worrisome. The ability of a country to prioritize and act on reorienting the skills development system to meet the needs of informal economy workers holds the key for reducing inequality and achieving inclusive growth.

There is merit in moving towards skills certification, skills portability, and recognition of prior learning. India’s significant progress in promoting recognition of prior learning (RPL) under the Skill Certification Scheme - Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is commendable. Future strategy indeed hinges on certifying skills that workers acquire informally, or on the job. This not only helps in increasing the portability of skills but it improves workers’ ability to negotiate for better employment terms.

While skilling has become a buzz word, it is important to be mindful that in itself it doesn’t lead to employment per se. Functional models and strategies on learning-to-work transition are imperative. Hence, I cannot stress more on the need for integrating technical education and skills in also the formal education system to ensure a seamless transition from school to work.

One way to look at it is to promote the national apprenticeship scheme with strong industry participation especially from the small and medium and enterprises. Entrepreneurship development and skill development should go hand in hand.

In this regard, I would like to draw your attention to a topical ILO-OECD publication from June last year entitled “Engaging Employers in Apprenticeship Opportunities”. It responds to a call from G20 leaders to implement quality apprenticeship programmes. It builds on nine country case studies, including India. It highlights that the success of apprenticeship programmes depends on robust implementation at the local level. Building “spaces” or networks for employers to provide advice is central. Informal partnerships can be developed into broader efforts to promote apprenticeship with both local employers and young people. For example, local apprenticeship hubs can be quite effective in providing tailored advice to SMEs and helping them access the assistance and services that they need in order to participate.

Effective training is targeted and needs-led. At the grassroots level, trainings can be offered through mobile or community-based training centers — by way of tapping into the networks of non-traditional training providers such as Tus and NGOs to improve outreach. A flexible training delivery schedule too is important as it especially helps women to tap into the skills market.

Going beyond pure skills demand and supply matching, the ILO works on raising awareness among employers on the intrinsic linkages between productivity and skills for market competitiveness. We have to achieve an inclusive and sustainable future of work and avoid a low-cost – low-skill race to the bottom. We have to think medium and long term.

Let me also here emphasize that the future of work is green. We must look at investing in skills for green jobs. This is a sector that is thriving and in which India has the opportunity to script a transformative story for itself and for the Globe.

In India, the ILO works with its constituents to aggressively push for skills development that is in sync with global competitive markets – making sure that workers have access to right skills for the right jobs. And that these skills are portable and internationally-recognized.

We also focus on enhancing social equity through skills so as to ensure a more holistic and sustainable intervention that benefits the marginalized communities, in line with India’s and the world’s commitment to the 2030 Sustainable Development Agenda. In this regard, we are readily assisting employers, workers and government in strengthening their skilling programmes -- both at the national and the state levels.

Thank you for your attention and I wish to congratulate you all on this Awards Summit Skilling India.