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Key Industries, Cities, and Categories Illuminate a Promising Landscape for Apprenticeships in India
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The engineering and industrial sectors dominate with 96% of e-commerce, and tech products show strong performance at 90% in NAO.
India, November 30, 2023: In a landmark revelation, TeamLease Degree Apprenticeship unveils the 2023 Apprenticeship Outlook Report, showcasing an unprecedented 75% surge in opportunities across India, which exhibits a noteworthy 9% growth over the quarter of January–March 2023. The Net Apprenticeship Outlook (NAO) metric, a key indicator of employer sentiment, has reached an all-time high, signaling a remarkable 75% increase in employer intent for apprenticeship engagement during the upcoming October–March 2023–24 half-year.
The NAO has increased significantly year-over-year (YOY), from 41% in Jan-Jun 2021 to 56% in Jan-Jun 2022 and 66% in Jan-Mar 2023 to an astounding 75% for the Oct-Mar 2023–24 period. This compound annual growth rate (CAGR) of nearly 30% showcases how organizations view apprenticeships as a pivotal talent development strategy, driving skill enhancement, workforce development, and talent pipeline creation.
The HY1 Apr-Sep’23 and HY2 Oct’23 to Mar’24 Apprenticeship Outlook Report reveals a compelling landscape, highlighting Engineering & Industrial (96%), Electrical & Electronics (94%), Telecom (93%), and Ecom & Tech products (90%) as the leading sectors with the highest NAO. Notably, these industries, along with five others, witnessed a significant increase in NAO during the October–March 2023–24 half-year compared to the preceding quarter. This trend indicates robust growth prospects for apprenticeships, affirming their pivotal role in shaping the workforce of the future.
The Report brings to light a pivotal insight: 41% of employers believe that degree apprenticeships stand as a formidable strategy to effectively address the skill gap through seamless industry-academia collaboration. This recognition underscores the transformative role of apprenticeships in shaping a future-ready workforce, emphasizing a strategic commitment to talent development, skill enhancement, and the establishment of a robust talent pipeline. As the report illuminates, this insight marks a significant leap toward fostering a skilled and promising future for India’s workforce.
This extraordinary surge underscores the robust growth anticipated in India’s apprenticeship landscape, with key cities such as Bengaluru, Delhi, and Hyderabad leading the charge. The report unveils a transformative phase for India’s workforce, promising unparalleled opportunities for skill development and career growth.
Employer satisfaction and reasons for apprentice engagement
An encouraging 70% of employers engaged apprentices during April-September HY1, 2023, with 63% expressing satisfaction with apprentice performance. Employers cited ‘addressing skill shortages,’ ‘cost-effective talent development,’ and ‘strengthening community engagement and CSR efforts’ as major reasons for engaging apprentices.
Gender preferences and workforce expansion anticipation
While 45% of employers have no gender preferences, others showcase a preference for female candidates, especially in services sectors like BFSI (21%), retail (18%), and manufacturing sectors like engineering and industrial (20%), automobiles and electronics (17%), and electrical and electronics (13%). Additionally, 47% of employers anticipate a workforce increase of up to 10% during HY2: October–March 2023–24, signifying a positive trajectory for apprentice engagement.
City-wise Trends: Bangalore leads with a 17% increase in NAO.
Among the metro cities, five out of six exhibit an increase in NAO for the Oct-Mar 2023–24 half-year, with Bangalore leading with an impressive 85%, followed by Delhi at 82% and Hyderabad at 80%. The top three industries engaging apprentices in Bangalore are engineering and industrial (89%), BFSI (86%), and retail (82%).
Employer strategies and structured training programs
Structured training programs (53%), and regular mentoring and coaching (41%), emerge as the preferred strategies for engaging apprentices, reflecting a commitment to their development. A significant 78% of employers report that over half of their apprentices successfully complete their training.
The top reasons for employers foreseeing an increase in apprenticeship hiring include real-time skill availability (35%), and business growth (21%). These statistics underscore the vital role apprentices play in contributing to tangible business outcomes.
Categories are in demand.
Optional Trade (82%), Designated Trade (80%), and Diploma Apprenticeship (77%) top the list of sought-after apprenticeship categories. Fitter/Mechanical Assembly (31%), Production Engineer (26%), and Computer Networking Technician (19%) are the most in-demand career opportunities in Optional/Designated Trade, while Machinist (22%), Production Apprentice (16%), and Mechanic (12%) are the top three roles in Trade Apprenticeships. In a diploma apprenticeship, the roles are technical service engineer (25%), machine operator (18%), and data analyst (15%). In graduate apprenticeships, positions such as electrical and electronics engineer (25%), mechanical engineer (17%), and automobile engineer (14%) are highly sought after.
Sumit Kumar, Chief Business Officer at TeamLease Degree Apprenticeship, remarked, “It’s encouraging to note that the percentage of businesses eager to boost their apprentice involvement in the quarter has improved as India Inc. continues to recognize the value of apprenticeships in building a robust talent pool. Over the last three years, the NAO has gone up from 41% in 2021 (Jan – June 2021) to 75% (Oct 23 – March 24), which is an all-time high. The primary reasons driving the growth are real-time skill availability, cost effectiveness, and driving community engagement under CSR. Also, initiatives from Govt. like PLI and Make in India, are driving the employment opportunities for which employers are relying on apprenticeships to build a talent pipeline. 63% of employers have reported satisfactory performances by the apprentices, which is encouraging for employers to scale up the intake. Employers are beginning to realize that apprenticeships linked to a degree are much more effective and impactful in attracting the youth for apprenticeships and also longer engagements. Anticipating a promising trajectory for apprenticeship engagement in India throughout fiscal 2023, degree apprenticeship is emerging as the modern Nayi Talim, which can yield socio-economic growth for the country. Apprenticeships or work-based programs can help balance the GER with the employability factor to lead India on the path to becoming the skill capital of the world. Evidently, the impetus from the PLI and NEP and the rise of academia-industry collaboration to expand degree apprenticeships are major contributors to the ecosystem. Additionally, gender neutrality in apprentice engagement is evident amongst employers across industries. Manufacturing exhibits a greater level of gender neutrality, especially in Engineering & Industrial (20%), Automobile & Automobiles (17%), and Electrical & Electronics (13%).”
Dhriti Prasanna Mahanta, Vice President at TeamLease Degree Apprenticeship, emphasized, “Apprenticeships emerge as the key to unlocking greater opportunities for female candidates in the evolving retail sector of India.” In the retail industry, the percentage of women working is 25–30%, while it is 60–75% in the US and the UK. It is evident that a considerable increase in the women’s labor participation rate is facilitated by apprenticeships. HR leaders highlight that apprenticeships will not only influence the talent pool in technology, services, and retail in the future but will also serve as a beacon for closing the gender gap. The total number of apprentices employed over the last five years has increased by 30%, and growth in the retail, BFSI, and logistics industries is predicted to reach 67% during the next 3 years”.
As India embraces this transformative phase for its workforce, the Report serves as a beacon, illuminating a promising landscape for skill development and career growth.
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