Is India’s lost generation a systemic risk? (CNBC)
A lengthy CNBC article explored the paradox of India having a huge talent pool of graduates with very few actually being equipped with skills to be gainfully employed. The article noted a survey conducted by Aspiring Minds, an entrepreneurial initiative in preparing youth for employability, which found as many as 83% of India’s graduating engineers in 2013 could not find jobs, given their poor English language and cognitive skills.
In fact, only 2.6% of graduates in India were recruited in functional roles like accounting, 15.9% in sales-related roles and 21.3% in the business process outsourcing sector with Varun Aggarwal, co-founder and COO of Aspiring Minds, saying:
“Nearly 47 percent of Indian graduates are unemployable in any sector, irrespective of their academic degrees.”
In 2020, the average Indian will be only 29 years old, compared to 37 in China and the U.S., 45 in West Europe and 48 in Japan, according to India’s Ministry of Labor and Employment. However, as little as 10- 12% of the 15-29 year-old age group in India receives any formal or informal training compared with to 28% in Mexico or 96% in South Korea.
The article ended by noting that the World Economic Forum’s 2014 Global Risk Report warned that high youth unemployability raises the risk of social instability and hampers economic growth with analysts fearing that this is playing out in India.
To read the whole article, India’s lost generation: A systemic risk?, go to the website of CNBC.
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