The labour ministry has proposed to impart marketable skills to half the country’s labour force within the next 15 years through a private-public partnership. It intends to provide vocational training to one million persons in five years and subsequently to one million persons each year. The ministry’s aim is to divert school drop-outs, who enter the labour market without skills, to a vocational stream. One may question both the rationale and the commitment of the government in implementing such schemes.

The report of the comptroller and auditor general shows that a major reason for dropping out of school is the inability of parents to afford their education. Such demotivating factors, rather than the compulsions of work, decrease numbers at schools. It is thus wrong to expect students who cannot afford formal education to come forward for vocational education. Of course, a stipend is being offered. But for labourers who are the primary bread-earners, even this would be difficult.

Besides, vocational training itself is unlikely to ensure an opportunity for more gainful employment. Employment, especially in the unorganized sector, depends on the demand for specific services and not so much on the skill of the job-seeker. In a country like India, where 93 per cent of the labour force is in the unorganized sector, skill is generally inherited from the society rather than from education. Again, wage as well as demand for labour is not really dependent on skills. Social stratification and attitude also do not allow wages to respond to skills in case of all sections of society. It is difficult to find women working as carpenters, masons, barbers or goldsmiths in rural India. Even if women do get the training in these trades, it is unlikely that they will find employment.

Limited appeal

By proposing to provide for skill upgradation, the government is, in fact, excluding the majority of the labour force which is either illiterate or cannot afford such training. At the rate intended, over the next 15 years the government can train around 11 million people or around 2.5 per cent of the labour force that lacks training. The government expects a major private sector participation, which is unprecedented. The current inclination of the private sector is towards services and the retail sector. A private sector initiative would entail provisions for training in skills like communication, which a majority of the unorganized labour force would be unable to take up. Employment opportunities in these sectors are again limited.

Training and skill-building can help only when there is an increase in employment opportunities. But we are far from such a situation. This is not to say that there is no need for vocational education. But it should, ideally, be under the purview of the ministry of human resource development. The education system may be reformed in that direction.

The labour ministry should concern itself with welfare issues pertaining to the labour force. For example, the enactment of the long-pending social security legislation for the vast unorganized sector in India. This would serve the dual purpose of providing social security and ensuring labourers’ participation in the economic development of the country by making them more aware of their rights. It would enhance their bargaining power. This is not a costly affair. As per estimates, it would cost the government around 0.2 per cent to 0.5 per cent of the GDP over a five-year period. Unfortunately, the government seems to be delaying the process.

The labour ministry scheme would open up a parallel education system and complicate fund-flow from the HRD ministry. Besides, the training is not linked to any employment guarantee, without which it is unlikely to be successful.