Arun Nalavadi is the Executive Director of Sustainability and Livelihoods at Magic Bus India Foundation.
India faces a critical crossroads in youth employability, with a staggering unemployment rate of 44.49 per cent among individuals aged 20 to 24 (NITI Aayog, 2023). As the nation aims to become a $30 trillion economy by 2047, addressing the widening gap in skills and employment has never been more crucial. With millions of youth, particularly young women, hindered by barriers such as limited skill development, inadequate education, lack of access to credit, workplace safety concerns, and digital illiteracy, there is an urgent need to create accessible career pathways. NGOs are instrumental in addressing these barriers, turning challenges into opportunities, and equipping youth for both grey- and white-collar roles. By leveraging skilling programmes and industry partnerships, they create a workforce vital for driving and sustaining India’s growth.
Building Transferable Life and Employability Skills: The Foundation for Workforce Readiness
Youth employability remains a challenge for India. According to the Economic Survey 2023-24, only 51.25 per cent of Indian youth meet industry standards for employability, with the gap primarily stemming from a mismatch between educational outcomes and industry needs. To address this, skilling programmes are needed to equip youth with transferable life and employability skills necessary for sustainable employment. Bridging this gap is key to unlocking the full potential of India’s youth and ensuring inclusive, resilient economic growth.
The International Labour Organisation (ILO) highlights the importance of life skills such as collaboration, communication, problem-solving, self-awareness, adaptability, digital literacy, and language proficiency for a resilient workforce. Unfortunately, these life skills are often lacking among the youth from underserved communities, limiting their employment prospects. Addressing this gap requires comprehensive skill-building initiatives beyond traditional classroom learning to emphasise practical, job-ready skills.
Imparting life and employability skills to youth from underserved communities creates access to transformative opportunities. Transitioning these youth to a sustainable workforce helps build individual agency and significantly contributes to doubling their families’ incomes. This economic upliftment enables youth to make informed decisions about their careers and life choices, empowering them to rise out of poverty and lead dignified lives. Additionally, these empowered individuals become role models and agents of change within their communities, fostering a ripple effect of positive transformation and development.
Through collaborative skilling programmes aligned with the National Occupational Standards (NOS) and involving employers from the IT, retail, e-commerce, and logistics sectors, youth can be equipped for entry-level roles that meet immediate market demand.
Collaborative Skilling Programmes to Bridge the Employability Gap
The employability gap among youth often stems from a lack of work readiness skills, as highlighted by workforce preparedness studies. Bridging this gap demands coordinated efforts between educational institutions, employers, nonprofits, and government agencies. Collaborative initiatives focused on developing essential life skills can help align training with industry expectations, ensuring youth are better equipped for the workforce.
Public-private partnerships are a particularly effective approach to addressing this gap. Through collaborative skilling programmes aligned with the National Occupational Standards (NOS) and involving employers from the IT, retail, e-commerce, and logistics sectors, youth can be equipped for entry-level roles that meet immediate market demand.
Financing Workforce Development: Performance-Based Models
Innovative financing models, like outcome-based skill impact bonds, are emerging as effective solutions to address funding gaps in skilling initiatives. These models tie funding to measurable outcomes, such as job placements and retention rates, ensuring programmes remain impactful and accountable. By incentivising performance, outcome-based financing aligns the interests of training providers, funders, and participants, creating a more sustainable path to long-term employment for youth.
Research shows that performance-based models can significantly improve job retention rates. For example, data indicates that job retention rates increase when youth receive post-placement support, such as mentorship or coaching during the first three months of employment. These models provide an adaptable framework that encourages skilling organisations to maintain a high standard of training while promoting sustained workforce participation among youth.
Fostering entrepreneurship among young Indians can catalyse economic growth, particularly in rural and peri-urban areas. Entrepreneurship Development Programmes can provide youth with business skills and access to financial resources, encouraging them to create and sustain their ventures. Youth-led businesses not only generate employment for their peers but also contribute to local economies, fostering community resilience.
Harnessing Technology to Scale Skilling Efforts
Digital technology offers transformative potential for scaling skilling programmes to reach a larger audience efficiently. By integrating in-person, virtual, and self-paced modules, blended learning platforms provide a flexible and accessible approach to training. Digital platforms can also enhance participant tracking, enabling real-time adjustments to improve the learning experience and ensure better outcomes.
Moreover, partnerships with tech companies can significantly prepare youth for high-demand roles like cloud computing, cybersecurity, and data analysis. For example, collaboration with technology companies offers youth access to globally recognised digital skills, positioning them for success in today’s increasingly digital economy.
Supporting Entrepreneurs: Catalysing Local Economic Growth
In addition to workforce readiness, fostering entrepreneurship among young Indians can catalyse economic growth, particularly in rural and peri-urban areas. Entrepreneurship Development Programmes can provide youth with business skills and access to financial resources, encouraging them to create and sustain their ventures. Youth-led businesses not only generate employment for their peers but also contribute to local economies, promoting community resilience.
By focusing on supporting entrepreneurial ambitions, skilling organisations can empower youth to create jobs rather than simply seeking them. Such programmes also have a multiplier effect, as successful young entrepreneurs serve as role models within their communities, inspiring others to pursue similar paths.
NGOs play a transformative role in creating pathways for both grey- and white-collar jobs, empowering youth with the skills and opportunities needed to thrive in a rapidly evolving economy. By aligning training with industry demands, fostering gender equity, and leveraging innovative financing and digital tools, these efforts prepare youth for meaningful employment and contribute to India’s broader economic and social development.
Economic Potential of Women’s Workforce Participation
To unlock India’s full economic potential, boosting female labour force participation is essential. According to a report by Bain & Company, in collaboration with Magic Bus India Foundation, doubling the Female Labour Force Participation Rate (FLFPR) among Indian women aged 15 to 59 years from the current 35–40 per cent (approximately 145 million) to 70 per cent could create a 400-million-strong female workforce by 2047. However, India is projected to expand its women workforce by only around 110 million by fiscal 2047, increasing the total female workforce to approximately 255 million (an FLFPR of nearly 45 per cent)—falling significantly short of the 400-million mark. This highlights a staggering gap of 145 million ‘missing women’ in the workforce. Addressing this gap will require overcoming the unique challenges urban and rural women face to integrate these additional women into the workforce.
NGOs significantly impact women’s lives by offering skill-building programmes that align with market needs, enabling them to achieve financial independence and greater self-reliance. Closing gender gaps and tapping into this talent pool is vital for India’s economy. As women gain access to economic opportunities, they can contribute to the economy and uplift their families and communities, creating a powerful ripple effect of positive change.
Conclusion
Bridging opportunity gaps for youth from underserved communities requires a multi-faceted approach that integrates skilling, technology, entrepreneurship, and collaboration across sectors. NGOs play a transformative role in creating pathways for both grey- and white-collar jobs, empowering youth with the skills and opportunities needed to thrive in a rapidly evolving economy. By tailoring training to industry needs, promoting gender equity, and utilizing innovative financing and digital tools, these initiatives equip youth for purposeful employment while driving India’s economic and social progress. Together, we can unlock the immense potential of India’s youth, driving inclusive growth and ensuring a resilient, empowered workforce for the future.
