More vocational training institutes may not always mean more jobs

Skill India was launched with the objective of providing skill training to about 400 million people by 2022. During the year 2015-2016, 12 million will be provided training. Two schemes - Pradhan Mantri Kaushal Vikas Yojana (PMKVY) and the Skill Loan scheme were launched to achieve these objectives.

Interestingly, states that have the highest percentage of people receiving vocational training also have the highest unemployment rates. As per the latest Annual Employment & Unemployment Survey, 6.8% of people have received vocational training among which 4% were informally trained and 2.8% were formally trained. The unemployment rate among informally trained people is 3.1%, but it rises to 14.5% in case of people with formal vocational training. States like Sikkim, Kerala & Goa and UTs Lakshadweep and Puducherry, which have high % of people receiving vocational training are facing high unemployment rates. This phenomena is more evident in the case of women, where there is a strong correlation between women receiving vocational training and female unemployment rate.

Persons receiving vocational training In rural and urban areas is 6.2 and 8.2 % respectively.

39% of females were found to be dropping out of the labour force after vocational training.

5 million people were trained by NSDC during 2010-2015, of which only 1.5 million were placed.