The National Skill Development Corporation (NSDC) has projected a significant surge of seven crore individuals into India’s labour force by 2023. This forecast comes from several key datasets including the Periodic Labour Force Survey, Crude Death Rates and the Employment-Unemployment Survey. The majority of these new entrants (84.3%) are expected to be in the age group of 15-30 years, indicating a young and vibrant workforce.
Gender Disparity in the Workforce
According to the NSDC’s study, one fifth of the individuals predicted to join the labour market by 2023, i.e., 20% would be females. The female labour force participation (FLP) rate for those aged 15 and above stands at a low 23.3%. This data is corroborated by World Bank statistics that show India’s FLP rate lagging considerably behind other Asian economies such as Vietnam (73%), China (61%), Singapore (60%), and Bangladesh (36%). Instead, India’s FLP rate stands on par with nations like Lebanon, Pakistan, Libya, Tunisia, and Sudan, all of which have an FLP rate hovering around 24%.
Impact of Education on Female Participation
The report from NSDC indicates a significant proportion of young women aged 15-19 years may not actively join the workforce. This could be attributed to them opting for higher education, a trend that could potentially lead to a more qualified yet smaller labour force.
Youth Demographics and Geographical Representation
In terms of age, 50% of the new entrants belonging to the 15-30 years age bracket between 2019-23 are projected to come from the 15-20 years subgroup. Geographically, six states, namely Uttar Pradesh, Maharashtra, Madhya Pradesh, Bihar, Tamil Nadu, and Karnataka are expected to make up 50% of all new youth entrants during the same time period.
On gender lines, female newcomers are expected to peak in 2021 and 2023 while male entrants are estimated to reach a high in 2023.
Projections: Key Facts & Figures
| State | New Entrants (15-30 years) 2019-23 |
|---|---|
| Uttar Pradesh | Estimated High |
| Maharashtra | Estimated High |
| Madhya Pradesh | High |
| Bihar | High |
| Tamil Nadu | High |
| Karnataka | Estimated High |
About National Skill Development Corporation (NSDC)
The NSDC is a public-private partnership that operates under the Ministry of Skill Development & Entrepreneurship. It’s mission is to foster skill development across India by supporting the creation of large-scale, quality vocational institutions. The corporation acts as a key force in skill development by providing funds to businesses and organizations that offer skill training, positioning itself as the primary agency for skills training within the country.