PHD Chamber of Commerce and Industry

Indian Industry is of the view that, after reeling under the impact of global slowdown over the last one year, the economy and industry have started showing some signs of improvement in recent months. However, the economic recovery may not create too many opportunities for job seekers in the near future. These are the findings of a recent survey undertaken by the PHD Chamber. The survey had 186 responses.

The positive feature emerging from the survey is that around 30 per cent of Indian Companies are back in the hiring mode. In fact, results suggest that demand for both mid and entry level recruitments has risen compared to six months ago, indicating companies across various segments are looking for expansion. It is envisaged that as the recovery process gathers steam and there is a rise in orders from US and EU – India biggest markets - the job situation would get even better with more and more employers launching recruitment drives to cater to increasing demand, said Mr. Satish Bagrodia, President, PHD Chamber.

The results polled show that 70 per cent of our respondents are not planning to hire. The reasons could be numerous. For one, Indian companies did not lay off too many people during the downturn. Hence, they are not contemplating to recruit personnel in large numbers. Secondly, our economy is yet to resume growth rates of the past. So, barring a few sectors which require specific skill sets, the job market is not too encouraging and we are moving towards a scenario of jobless growth. Despite nascent economic recovery, there is still slack in the system as a result of which many companies have no intention of hiring workers in a big way as of now.

Respondent are of the view that it is imperative that skill development initiatives be taken on a priority basis in order to equip workforce with the requisite expertise which is in tune with the industry requirements. This would increase the employability of workers.
There is also need to undertake reforms in the education sector to ensure that workers are provided appropriate skill-sets which cater to the requirements of companies. Industry must be given proper representation on committees set up for undertaking reforms in education sector, added Mr. Bagrodia.

Some areas of reform are as under:

Modify syllabus and curriculum to reflect industry requirements.
Ensure that employment-oriented courses are subject to quick assessment and early implementation
Make Common Aptitude Test optional.
The lack of co-ordination between industry and technical education as also shortage of faculty needs to be looked into.
Evaluate best practices in skill development internationally and in the country and replicate the same in other institutes of learning.
Impart training to students to enable them to learn, innovate, invent, reinvent and upgrade themselves with changes in technology.
Pursue localised , informal approach for skill development
Incentivise industry to train, develop and employ ITI students as most of the ITIs impart theoretical knowledge only.