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Huge number of Indian youth remain unemployable, says report

Sunday December 26, 2010 12:52:21 PM, IANS

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New Delhi: Rapid economic growth in the country is expected to generate 10-15 million jobs by next year but lack of suitable skilled candidates poses a major threat, a leading industry lobby said Sunday.

"Approximately 10 to 15 million jobs are expected to be created by next year, in which 75 percent will require vocational training. If not addressed properly it can lead to a slowdown in the country's economic growth," said a report by the Associated Chambers of Commerce and Industry of India (Assocham).

According to the report, the principal reason behind India's growth is its youth force, the largest in the world. However, millions of young Indians are jobless because they do not receive proper vocational training.

"The huge numbers of Indian youth are not only unemployed but unemployable, whereas large numbers of white collar jobs are waiting for suitable candidates," the report said.

It further said that though 90 percent of jobs in sectors like information technology (IT) and IT Enabled Services (ITES), biotechnology and the services sector are skill-based and require training, only six percent of the total workforce receive such training.

The report also predicted that 2011 will be a boom year for the IT & ITES sector, accompanied by a corresponding rise in salaries.

"The year 2011 is likely to be a boom for skilled workers in IT & ITES, biotechnology and services sectors. As against the 15 percent hike in salaries in 2010, it is expected to be registering 30 to 40 percent growth," Assocham secretary general D.S. Rawat said.

Currently, IT and ITES industry alone provides direct employment to about 2.23 million people and indirect employment to a further eight million.

The report added that this sector in particular will experience a shortage of skilled manpower.

"The employers are trying to catch the highly skilled manpower and the salaries are going through the roof. It is expected that the salaries in this sector will be growing at a par of 30-40 percent during the year 2011," the Assocham report added.





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