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2

District Level Skill Gap Study for Kerala

Final Presentation

Proprietary and confidential. This information does not represent and should not be constructed as, legal or professional advice. © 2013 NSDC. All Rights Reserved

Contents

3

Objectives of the Study 4

Methodology 7

State Profile 10

Education & Skill Development 20

Migration 26

Youth Aspirations 30

Estimation of Skill Gap 33

Challenges in Skill Development in the State 39

Recommendations 42


Skill Gap Study – Kerala

4

Objectives of the Study


Scope of the Study

5

NSDC has mandated Deloitte to conduct a district level skill gap study for all the districts of Kerala

including the following

• Socio-economic profiling – demography, economic profile of district by industry & state of education

• Identify developmental opportunities keeping in mind factor endowments and stakeholders

perspectives

• Identify specific developmental initiatives/ projects which have an impact on employment generation

• Articulate the aspirations of the youth

• Identify the current and future (2011-12 to 2022) skills and manpower requirement by industry and

estimate the gap that exists

• Identify current schemes and programmes relating to skill development and their achievement/

challenges

• Study the existing VT infrastructure both in the private sector and the government domain

• Suggest suitable interventions/ recommendations to address the skill gap

• Create an action plan with indicative timelines



Objectives of the Study

6

Socio-

economic

profile

Identify

development

opportunities

Understand

stakeholders

perspective

Identify current

& future skill

gap

• Demography

• Economic profile by industry

• State of education / vocational

training

• Specific developmental initiatives/

project

• Current schemes and programmes

relating to skill development

• Articulate aspirations of the youth

• Industry requirements

• Barriers to skill development

• Skills and manpower requirement by

industry

• Estimate the existing gap

• Suggest suitable

interventions/

recommendations to

address the gap.

• Create an action plan

with indicative time

lines



7

Methodology


Approach & Methodology

8

Sector

Analysis

1. Assess

Review of schemes/ policies

Interactions

with institutes

and industry

As-Is Skill

scenario

Interactions with

government officials

Interactions

with youth/

students

Key insightsGrowth

scenarios

2. Estimate 3. Propose

Action plans for state

government, NSDC

Recommendations for training

institutes, employers

Recommend

ations

Skill and

manpower

demand

Skill and

manpower

supply

Future Skill

Gap

District

profile

Interviews/

Discussions and

Desk Research

Interviews/

Discussions and

FGDs

Desk research

and expert

opinions

Consultation with

NSDC and

government

Primary and

secondary

research , expert

opinions



Approach & Methodology

9

The study was carried out through both primary and secondary research methodology

• Primary Research: included structured and semi structured interviews and focused group discussions

(FGDs) with industry representatives & youth.

Various category of stakeholders met during the study:

• Secondary Research based on various sources including - Directorate of Economics and

Statistics, Census of India, NSSO, CMIE database, SPB Reports including Interim report of the Expert

Committee on Employment and Skills Development, MHRD, MoLE reports, Data published by MSME-

DI, Migration Studies by CDS, CII reports on industry sectors and skill development etc.

Stakeholders No

Govt. Officials of key departments (KASE, Higher Education, Labour and Rehabilitation, Tourism,

Coir Board, NORKA etc.)61

Representatives of industry & industry associations in each district (CII, Technopark, Coir Board,

Terumo Penpol, Apollo Tyres, Synthite, Carborundum Universal Ltd. Eastern Condiments, CGH, SFS

Builders, Abad Builders, Kunnel Constructions, Lakeshore hospitals, VKC Footwear, etc.)65

Personnel from Education and Skill Development Institutes ( IIM Kozhikode, CDS, S B Global,

SCMS, Govt ITI Aryanad, Women’s ITI Kazhakootam etc)44

Youth participated in surveys / FGDs 418



10

State Profile


Kerala Demography

11

Demography (2011) Kerala India

Population (crores) 3.34 121.06

Decadal Population

Growth Rate (2001-11)4.86% 17.7%

Population density per

sq. km860 382

Sex Ratio 1084 943

Percentage of Urban

Population47.7% 31.2%

Percentage of SC

population9.1% 16.6%

Percentage of ST

population1.5% 8.6%

Source: Census 2011

• Low Decadal Population Growth: 4.9% (2001-11), lowest among 17 major states in India.

• High Population Density: Kerala (860) higher than the national average (382). Thiruvanthapuram

(1509) district has highest pop. density.

• Balanced Urban-Rural Spread: 1.74 crores in rural (52.3%) and 1.59 crores in urban (47.7%).

• High Sex Ratio: Kerala is unique with a high sex ratio of 1084, ranking first among all states



Kerala Economic Profile

12

From 2004-05 to 2011-12

• Economy grew at CAGR of about

8.4%, from Rs 1192.6 Bn to Rs 2101.1 Bn

(2004-05 to 2011-12)

• Primary sector’s contribution declined

from 17.9% to 9.5%

• Secondary sector contribution fell from

22.5% to 20.2%

• Share of tertiary sector increased from

59.6% to 70.3%, due to increased

contributions from sectors such as

Transport, Storage and

Communication, and Banking and

Insurance.

In 2011-12,

• Ernakulam district (Rs 302.9 Bn)

contributes the most to the state

economy, followed by

Thiruvananthapuram (Rs. 231 Bn.).

• Wayanad district (Rs. 39.3 Bn)

contributed the least to the state

economySource: CSO State Series, 2004-05 prices

1,1931,313

1,4171,541

1,6271,776

1,919

2,101

0

500

1000

1500

2000

2500

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

GSDP at constant prices (2004-05) in Rs. Bn.

CAGR: 8.4%

17.9% 17.1% 14.9% 13.5% 13.1% 11.9% 10.5% 9.5%

22.5% 22.4% 22.3% 22.1% 21.0% 20.6% 20.7% 20.2%

59.6% 60.4% 62.9% 64.4% 65.9% 67.5% 68.8% 70.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Sector level Contribution to GSDP

Primary Secondary Tertiary



6.9%

24.6%

10.4%

13.2%

17.0%

11.9%

11.1%

5.8%

8.3%

5.9%

6.5%

13.7%

8.2%

13.1%

32.7%

14.2%

22.0%

15.8%

11.0%

16.0%

16.5%

21.8%

19.1%

20.6%

19.9%

12.3%

17.7%

12.1%

60.4%

61.2%

67.7%

71.0%

72.0%

72.1%

72.3%

72.4%

72.6%

73.5%

73.6%

74.0%

74.1%

74.7%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Ernakulam

Idukki

Palakkad

Kottayam

Wayanad

Kollam

Malappuram

Trivandrum

Alappuzha

Thrissur

Kozhikode

Kasargod

Kannur

Pathanamthitta

GDDP Contribution (2011-12)

Primary Secondary Tertiary

Kerala Economic Profile

13

• The tertiary sector contributes the highest to the economy followed by the secondary sector

except in four districts including Idukki, Wayanad, Kasaragod, Pathanamthitta where the primary

sector contributes more than the secondary sector.

• Ernakulam district contributes the highest to all the three sectors of the economy followed by

Kottayam for primary sector, Trivandrum to secondary sector and tertiary sector

Source: CSO State Series, 2004-05 prices



Kerala Economic Profile– Tertiary Sector

14

• Tertiary sector key to economy in terms

of growth and contribution.

• In 2011-12 Trade, hotels and

restaurants comprised 30.4% of the

tertiary sector, followed by real estate

and business activities (16%) and other

services (14.4%).

• Ernakulam district contributed the

highest to overall tertiary output.

(12.4%)

71

0.7

79

3.5

89

0.8

99

2.6

1,0

72

.7

1,1

97

.9

1,3

20

.9

1,4

76

.8

0

200

400

600

800

1000

1200

1400

1600

04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12

Tertiary Sector – GSDP, Rs billion

CAGR: 11.0%

Transport and

Storage, 11.1%

Communic-ation, 11.8

%Trade, Hote

ls and Restaurants

, 30.4%Banking & Insurance, 1

0.6%

Real estate, Busi

ness services, 16

.0%

Public admin-

istration, 5.7%

Other services, 14

.4%

Tertiary Sector – 2011-12


District

Contribution of

district to overall

state tertiary output,

2011-12

Ernakulam 12.4%

Thiruvananthapuram 11.3%

Thrissur 10.4%

Kozhikode 9.2%

Malappuram 8.0%

Kannur 7.7%

Kollam 7.6%



Kerala Economic Profile– Tertiary Sector

15

Tourism: focus on emerging areas such as adventure tourism, promotion of local souvenirs and handicrafts, continued emphasis on backwater tourism and Ayurveda, promotion of homestays and environment-friendly tourism (Tourism Policy 2012)

Information Technology: Establish 3,000 technology start-ups, 5 lakh direct employment by 2020; Promote IT parks around Thiruvananthapuram, Ernakulam and Kozhikode (IT Policy 2012)

Communication: 29% growth between 2004-05 and 2011-12, 11.8% to the tertiary sector in 2011-12

Other Services: Growth of 9.4% between 2004-05 and 2011-12, 14.4% to the tertiary sector in 2011-12.

Sector includes Education & Skill Development, Healthcare, Media & Entertainment, Informal sector services

BFSI: Growth of 14.5% between 2004-05 and 2011-12. 10.6% to tertiary sector in 2011-12



Kerala Economic Profile– Secondary Sector

16

• Contribution to economy declined;

22.5% in 2004-05 to 20.2% in 2011-12.

• 2011-12: Construction comprised

58%, registered manufacturing

(20%), unregistered manufacturing (16%)

and electricity, gas & water supply (6%).

• Construction: 7.8% growth (2004-05 to

2011-12). Contribution to secondary sector

rose from 53.9% to 57.6%

• Ernakulam district contributed the highest

to overall secondary output (23.3%).

District

Contribution of district to

state secondary output,

2011-12

Ernakulam 23.3%

Thiruvananthapuram 11.8%

Thrissur 10.1%

Kozhikode 8.6%

Palakkad 8.2%

26

8.9

29

4.7

31

5.5

34

0.3

34

1.3

36

6.4

39

7.1

42

5.0

050

100150200250300350400450

Secondary Sector – GSDP, Rs. billion

CAGR: 6.8%

Manufacturing -

Regd16%

Manufacturing -Unregd

20%

Construc-tion58%

Electricity, Gas & Water Supply

6%


Secondary Sector, 2011-12



Kerala Economic Profile– Secondary Sector

17

• MSMEs: Kerala accounted for 10% of the

functional MSMEs in the country providing

employment for nearly 7% of the total employed

in MSME sector.

(4th All-India MSME Census)

• Key MSME industries (in terms of employment):

• Food Processing:

Thiruvananthapuram, Alappuzha, Kottayam,

Ernakulam, Kollam

• Ready-made garments & embroidery:

Thiruvananthapuram, Alappuzha, Kottayam,

Ernakulam

• Wood/wooden based furniture:

Alappuzha, Kottayam, Ernakulam

• Chemical/Chemical based:

Ernakulam, Alappuzha

• Rubber, Plastic & Petro-Based:

Alappuzha, Kottayam, Ernakulam

Source: DIC, ‘Study on Kerala – Roadmap for Inclusive Growth’ ASSOCHAM 2012, Primary Interactions, MSME DI District ProfilesProprietary and confidential. This information does not represent and should not be constructed as, legal or professional advice. © 2013 NSDC. All Rights Reserved


Kerala Economic Profile– Primary Sector

18

21

3.0

22

4.7

21

0.4

20

8.0 21

2.6

211

.4

20

0.7

19

9.2

185

190

195

200

205

210

215

220

225

230

04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12

Primary Sector – GSDP, Rs. billion

CAGR: -0.9%

• Contribution to economy declined; 17.5% in

2004-05 to 9.5% in 2011-12.

• In 2011-12, Agriculture comprised 75%

followed by forestry & logging (12%), fishing

(9%) and mining and quarrying (4%).

• Ernakulam district contributed the highest

to overall primary output (10.5%).

District

Contribution of district to

state primary output,

2011-12

Ernakulam 10.5%

Kottayam 9.6%

Kollam 9.3%

Malappuram 9.1%

Idukki 8.9%

Agriculture

75%

Forestry & Logging

12%

Fishing9% Mining &

Quarry-ing4%




Promotional Initiatives – Thrust Sectors

19

• Industries: Khadi and Handlooms, Handicrafts, Coir, Bamboo, Cashew, Food

Processing, Bio-technology, nano-technology

• Services:

Healthcare, Entertainment, Education, IT, Tourism, Ayurveda, Logistics, Transport, Financia

l Services, Communication, Retail

Industrial and Commercial Policy – Key Focus Areas

• Growth centres in Kannur, Kozhikode, Alappuzha and Malappuram

• Other key projects: Kochi – Palakkad NIMZ (National Investment Manufacturing

Zone), Electronic Hardware Park at Kochi, Light Engineering Industrial Park in

Palakkad, Electronic Hardware Park at Kochi and Life Sciences Park in

Thiruvananthapuram

KSIDC Investments

• l4 theme based Industrial Parks in Kerala in areas such as

garments, infotainment, marine/seafood, rubber, exports, food processing, etc.

• Key projects: International Apparel Park at Thiruvananthapuram; India’s first Export

Promotion Industrial Park at Ernakulam; India’s first Infotainment Park, the Film & Video

Park at Thiruvananthapuram and India’s first Food Processing Industrial Park at

Malappuram

KINFRA Investments



20

Education & Skill

Development


Kerala – Literacy and Education levels

21

Source: Source: NSS Report 551 - Status of Education and Vocational Training in India

Literacy

• Kerala is the most literate state in the country, with literacy recorded at 94%

• Male literacy: 96.1%; Female literacy: 92.1%.

• Urban literacy: 94.9%; Rural literacy: 92.9%.

• Most literate district: Kottayam (97.2%); Least literate: Wayanad (89.0%).Source: Census 2011

Education Level (per

1000, 15 years and

above)

Kerala India

Male Female Person Male Female Person

Illiterate 33 86 61 214 423 317

Literate up to middle

school545 509 526 422 346 385

Secondary and

Higher Secondary

School

277 271 274 259 169 215

Diploma/Certificate 53 36 44 15 6 11

Graduate and Above 92 97 95 90 56 73

Education Levels

• 92 men and 97 women

estimated to be graduates

and above, only slightly

higher than the all-India

estimation for men at 90 (per

1000)

• 53 per 1000 men and 36 per

1000 women estimated to

have a diploma or certificate

in Kerala; relative preference

for such certifications among

men



Kerala - School Education

22

Source: KDISE 2011-12 Report, and SEMIS 2011-12 report

• The top 3 districts in terms of number of

schools are Malappuram

(1596), Kannur(1466) and Kozhikode(1412)

• In terms of enrolment, the top districts are

Malappuram (6,76,606), Thrissur (4,41,889)

and Kozhikode (4,35,221)Source: DISE Report 2011-12, SEMIS report 2011-12, MHRD 2010-11 All

India Higher Education Survey

School category Number

NUMBER OF SCHOOLS

Lower primary Schools (I-IV) 7872

Upper Primary Schools (V-VII) 3761

High Schools (VIII-X) 3650

Total 15,283

TOTAL ENROLMENT

Lower primary Schools(I-V) 17,95,723

Upper Primary Schools (VI-VII) 15,21,904

High Schools (IX-X) 13,50,746

Total 46,68,373

TOTAL TEACHERS

Lower primary Schools(I-IV) 48676

Upper Primary Schools(V-VII) 56791

High Schools (VIII-X) 77782

Total 1,83,249

Lower Primary Enrolments(I-IV): 18.0 Lakhs

Upper Primary Enrolments(V-VIII): 15.2 Lakhs

Secondary Enrolments: 13.5 Lakhs

Higher Secondary Enrolments:

4.9 Lakhs

UG Enrolments :

5.9 Lakhs

PG Enrol-ment0.7 L



Kerala - Higher Education

23

Educational

Infrastructure

No. of

Institutes

Sanctioned

Intake

Engineering/ Technology 153 48,988

Arts Science and

Commerce Colleges414 1,76,798

Agriculture 5 289

Medicine (including

Ayurveda, Homeopathy, 66 6,957

Nursing 111 7,363

BPharm 29 2,641

Paramedical and Applied

Sciences28 1,143

Law 16 2,004

Management 88 7,950

Distribution

• 52 arts and science colleges (12.6%) for

Ernakulam to 12 (2.9%) for Wayanad.

• Distribution of engineering colleges varies

from 29 in the Ernakulam to 1 in Wayanad

• Ernakulam (26) has the maximum number

of Management institutes

• Kasaragod, Idukki and Wayanad do not

have any medical college

• Centres of Excellence include Technopark,

Vikram Sarabhai Space Centre, Rajiv

Gandhi Centre for Biotechnology, IISER,

Cyberpark, IIM Kozhikode, NIT Kozhikode,

Cochin University of Science and

Technology (CUSAT)

Source: Directorate of technical education, Kerala University

website, CEE Website, AICTE, List of Affiliate medical Colleges



Kerala - Vocational Training

24

ProgramNo. of

Institutes

Sanctioned

IntakeITI/ITCs 612 ~67000

Polytechnic 59 ~10,500

• Kerala has 612 ITI/ ITCs with the government ITIs

comprising 12.41% of the total.

• Thiruvananthapuram (73) has the maximum

number of ITI/ITCs while Wayanad (7) has the

lowest number of ITI/ITCs in the state.

• Except the districts of Kasaragod(12) , Idukki(12)

and Wayanad (7), all the districts have more than 35

ITIs.

• SDIS: 250 registered Vocational Training Providers

(VTPs) in the state, 70 VTPs estimated to be

functional.

• NSDC partners: S B Global is the first private

training institution based in Kerala to be approved

by NSDC as a Skill Development Partner, with

centres at Kochi, Kottayam, Thrissur and Kannur.

Other NSDC partners with operations in Kerala

include Future Sharp, IIJT and Talent Sprint.

Source: DGET website and Board of Technical Examinations



Kerala- Skill Development Key State Government Initiatives

25

• State Skill Development Project,

implemented jointly by the Labour

(Employment & Training), General Education,

Higher Education and Local Self Government

Departments.

• To cover 14.8 lakh people over the XII FYP

• Additional Skill Acquisition Programme

(ASAP): vocational training to Higher

Secondary School Students and B.A, B.Sc.,

B.Com Students at the Undergraduate levels

in colleges.

• ASAP has a target of training 3.1 lakh

trainees between 2012-17 with a budget of

Rs. 633.3 crores

• KASE - Additional Skill Enhancement

Programme (ASEP): skill up gradation to

ITI students and registered applicants through

Employment Exchanges with services

including skill mapping and trainings

• ASEP has a target of training 11.7 lakh

trainees between 2012 and 2017 with a

budget of Rs. 2295.4 crores.

8400

33600

50400

67200

84000

240010800 13800 16800

22800

0

20000

40000

60000

80000

100000

2012-13 2013-14 2014-15 2015-16 2016-17

ASAP Target Trainees (2012-17)

Higher Secondary Under Graduate

4800063200

91200

119200

147360

7200094800

136800

178800

221040

0

50000

100000

150000

200000

250000

2012-13 2013-14 2014-15 2015-16 2016-17

ASEP Target Trainees (2012-17)

MES Trainees ASEP Trainees

Source: State Skill Development Project – Preliminary Project Report, GoK, 2012



26

Migration


Migration – Non Resident Keralites

27

• Non-Resident Keralites (NRKs), the sum of emigrants and return emigrants, estimated at 34.3 lakhs in

2011.

• 90% of Kerala’s emigrants reside in the Middle East in countries such as UAE and Saudi Arabia

• Mallapuram district had highest share of NRKs at 5.6 lakhs, Idukki district had the least with 0.14

lakh NRKs

• Volume of remittances to Kerala from abroad, estimated at Rs. 49,675 cr., accounting for 31% of SDP

in 2011.

• Trend of return migration, estimated at 11.5 lakhs, owing to factors such as demographic

transition, comparable life styles in Kerala/India, increasing cost of emigration etc.

Source: Inflexion in Kerala’s Gulf Connection, Report on Kerala Migration Survey 2011, Centre for Development Studies

14.4

106.7

129

.3

166

.0

198

.4

199

.1

225

.4

284

.4

321

.1

347

.5

408

.3

425

.8

563.0

5.2

21.8

33.226.4

57.2

22.8

37 35.842.2 45.6

51.1

74.1

50.5

71.2

0

100

200

300

400

500

600

0

20

40

60

80

Th

ou

sa

nd

s

Non-Resident Keralites, 2011

Number NRK per 100 HH

Implications for skill development in terms of re-skilling/up skilling of returning migrants



Migration – Education and Occupational Status

28

Occupation before emigration

Agriculture/ Animal Husbandry 21.9%

Construction worker / labourer 9.0%

Cultivator 8.3%

Motor Vehicle Driver 5.8%

Shop Salesman 5.4%

Educational Status:

• Emigrants: 8.1% having attained a

ITI certificate or a polytechnic

diploma and 19.1% with a degree or

above.

Occupational Status:

• Key occupations: agriculture/ animal

husbandry, shop salesman, motor

vehicle drivers, construction

workers/labourers and

teachers/lecturers.

Source: Inflexion in Kerala’s Gulf Connection, Report on Kerala Migration Survey 2011

Implications for professionally skilling emigrants/out-migrants with internationally/ nationally

recognized certification

8.8%0.9%

64.0%

84.8%

8.1%4.3%

19.1%

10.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Emigrants Return-Emigrants

Illiterate Pre-primary to Class XII ITI and Polytechnic Degree and Above



Migration – In-migrants from other states

29

Domestic Migrant Labour

• Estimated over 25 lakh migrant

labourers in Kerala, with an annual

arrival rate of 2.4 lakhs

• West Bengal (20%) dominated the

states from where migrants were

found to originate, followed by Bihar

(18.1%), Assam (17.3%) and U.P

(14.8%).

• Estimated that 60% work in

construction, 8.3% in manufacturing

and 6.9% in hotels and restaurants.

• Most of the migrant labourers are

unskilled labourers especially in

sectors such as construction

Source: Domestic Migrant Labour in Kerala, Report submitted to Department of Labour and

Rehabilitation, 2013

Influx of in-migrants has implications for integration into main-stream employment and also for

skilling and re-skilling in relevant sectors

State % of total migrants in Kerala

West Bengal 20.0%

Bihar 18.1%

Assam 17.3%

Uttar Pradesh 14.8%

Orissa 6.7%

Others 23.1%

Sector % of total migrants in Kerala

Construction 60.0%

Manufacturing 8.3%

Hotels and Restaurants 6.9%

Agriculture 2.3%

Trade 1.7%

Others 17.5%

Not Reported 3.1%

Source: Domestic Migrant Labour in Kerala, Report submitted to Department of Labour and

Rehabilitation, 2013



30

Aspirations of the Youth


Aspirations of the Youth

31

Preferred Job Opportunities

• Most of the ITI students prefer to be

employed in Government

organizations like

KELTRON, KSEB, KSRTC

• Students of courses such as Hotel

Management, Hospitality prefer to

work for private sector

Preferred Location of Employment

• Students in northern districts seem

more willing to migrate to other

districts and states such as

Karnataka, Tamil Nadu etc. due to

limited opportunities

• Nursing students find the need to

migrate to other states due to

limited opportunities

Challenges and Barriers

• Limited exposure to

communication/soft skills

• Lack of practical on job training on

account to limited local

apperenticeship opportunities

• Limited entrepreneurship

awareness/devt

• Lack of industry appreciation for

vocationally skilled

Preferred Sectors

• Preference for trades in

Construction, Mechanical, Electroni

cs/Electrical and Computer Science

(Surveyor/civil, MMV, COPA etc)

• Preference for NCVT course over

SCVT courses Vocational

Training is

perceived to be

less desirable

compared to

professional

qualifications



Youth Aspirations – Skill Development Attractiveness

32

• Although the building and construction sector has high potential for employment, the sector ranks

low on youth preference.

• Sectors such as BFSI, IT/ITeS/Health care, Engineering Products and Education/Skill Development

are preferred sectors

Source: Primary Interactions and Deloitte Analysis

Incr

emen

tal M

anp

ow

er D

eman

d

Hig

h

Building and Construction

Communication BFSI

Med

ium

Food Processing

Retail

Real Estate Services

Chemicals and Pharmaceuticals

Travel, Tourism and Hospitality

IT & ITeS

Healthcare

Engineering Products- MSME

Education and Skill Development

Lo

w Handlooms and

Handicrafts

Utilities

Transportation and Logistics

Textiles and Garments

Media and Entertainment

Low Medium High

Youth Aspirations



33

Estimation of Skill Gap



Incremental manpower demand

Incremental HR Demand (in ‘000) 2012-17 2017-22 Total

Skilled 499 663 1,162

Semi-Skilled 566 725 1,292

Minimally-Skilled 424 520 943

Incremental manpower demand (2012-22) 1,489 1,908 3,397

34

Source: Deloitte Analysis

• 38% of incremental demand expected in the semi-skilled segment, 34% in skilled segment.

• Building and construction to generate 16.5% of the incremental demand, highest share across

sectors.

• Projected incremental demand in BFSI, Communication and Education/Skill Development

sectors contribute to 14.8%, 14.0% and 10.2%

• Education and Health care sectors together contribute significantly to the creation of skilled jobs

(22%).

• Manufacturing: Engineering contributes 20%, followed by food processing/agro-based (16%) and

Textiles & garments (13%).

• The select informal sectors include industries like the security and surveillance, facilities

management and housekeeping, etc. which are important from the view of skill enhancement.

• A significant number of the workforce (~8 Lakhs) is expected to exit from the agriculture sector

between 2012-22 and added to the incremental supply of workers in this period.



Estimated Incremental Manpower Demand for key sectors

(in `000)

2012-17 2017-2022

KeySectors SkilledSemi-

Skilled

Minimally-

skilledSkilled Semi-Skilled

Minimally-

skilled

Building & Construction 39 104 118 45 119 134

BFSI 97 87 10 154 139 15

Communication 40 80 80 55 110 110

Education/ Skill development 100 23 31 125 29 39

Manufacturing 22 58 40 19 62 44

IT / ITES Services 42 20 3 59 27 5

Retail 10 32 22 10 33 23

Healthcare services 12 21 8 16 26 10

Travel, Tourism & Hospitality 6 16 9 7 17 10

Other Services 82 38 6 113 52 9

Select Informal Sectors 12 43 68 16 55 86

Total Incremental demand 499 566 423 663 725 519

Overall Incremental Demand 3,397

Workers exiting sectors

Mining and Quarrying -1 -5 -10 -2 -4 -7

Agriculture and allied activities -14 -45 -393 -10 -32 -282

Total workers exiting -820

35 Proprietary and confidential. This information does not represent and should not be constructed as, legal or professional advice. © 2013 NSDC. All Rights Reserved


Incremental manpower supply

36

Source: Deloitte Analysis

Incremental HR Supply (in ‘000) 2012-17 2017-22 Total

Skilled 448 448 896

Semi-Skilled 565 564 1,128

Minimally-Skilled 621 474 1,095

Incremental manpower supply (2012-22) 1,634 1,486 3,120

• Proportion of incremental supply of minimally skilled manpower to decline from 38% in the 2012-

17 period to 31% in the 2018-22 periods.

Significantly, the semi- skilled segment is expected to emerge as the largest category of supply

over the 2012-22 period and account for 11.28 Lakhs or 36% of the incremental workforce.

• The trend of migration is expected to be outward across skill levels. However, there is also a

trend towards inward migration from other states, especially for minimally skilled jobs in sectors

like building and construction and hospitality.

• Incremental supply of manpower also augmented by workforce moving from agriculture and

other sectors.



Estimated Incremental Skill Gap 2012-17

37

Text

Text

Skilled

Semi-Skilled

Minimally Skilled

Incremental Human

Resource Requirement

2012 to 2017

Incremental Human

Resource Availability

2012 to 2017

Demand-Supply gap of

Human Resources 2012

to 2017

4.98 L

5.66 L

4.24L

5.65 L

4.48L

6.21 L

0.51 L

0.02 L

(1.97) L

There is an estimated incremental deficit of manpower in skilled manpower of 0.51 lakhs which

may be bridged by skilling people in the semi-skilled and minimally skilled category



Estimated Incremental Skill Gap 2018-22

38

Text

Text

Skilled

Semi-Skilled

Minimally Skilled

Incremental Human

Resource Requirement

2018 to 2022

Incremental Human

Resource Availability

2018 to 2022

6.63 L

7.25 L

5.19L

5.64 L

4.48 L

4.74 L

2.15 L

1.61 L

0.45L

Demand-Supply gap of

Human Resources 2018

to 2022

Excess demand for skilled, semi-skilled and minimally skilled manpower with highest demand for

skilled resources.



39

Challenges in Skill Development in the State


Key Challenges

40

Limited placement opportunities for students

This may be attributed to lack of institutional infrastructure for continuous interaction with industry/

employers.

Need to update curriculum regularly with industry participation

Scope to continuously update curriculum due to evolving industry needs with greater emphasis on

technology-based skill modules.

Poor industry readiness of the vocationally trained students

According to industry, students from ITI lack proper grooming, work ethic and soft skills required to

satisfactorily perform the duties at the work place.

Limited Awareness of Skill Development Initiatives

Mobilization of students is a key issue expressed by training providers.

Need to strengthen Quality Assurance/Control for Skill Trainings

The interim report of the Expert Committee on Employment and Skills Development highlights the lack of

quality control/assurance arising due to absence of high quality faculty and quality assurance systems.

Limited opportunities/awareness for up skilling/continuous learning

Limited options available for existing employees to continuously learn and upgrade their skills

Limited Availability of local labour for minimally skilled jobs



Key Challenges

41

Preference for white collar jobs and professional education

The perceptions associated with vocational education results in students taking up vocational training as

a last resort. This has also resulted in the state having to rely on migrant labour for certain jobs in

industries such as construction and tourism/hospitality.

Skilling of traditional industries

Since the agriculture sector is an important sector in terms of food security, rural livelihoods and

exports, even though there may not be incremental demand in HR in the sector, it presents opportunities

for re-skilling and up-skilling of the current workforce.

Lack of Entrepreneurship Culture

Primary interactions revealed the lack of an entrepreneurial culture among youth and the inherent

challenges of devising skill development schemes to encourage entrepreneurship on a large scale

Challenges related to migrant labour

Emigrants: large proportion of emigrant labour estimated to lack a professional degree or certification

Labour restrictions in Middle Eastern countries => emigrants returning in significant numbers

In-migrants: Some of the industry representatives felt that in the context of high turnover among this

segment, the statutory rules related to migrant labour may need to be relooked.

Need to improve availability of nationally recognized certification

Interactions with youth indicated preference for courses with industry / national recognition e.g. NCVT

certified courses over SCVT courses since they believe it improves their chances of placements and

opportunities outside the state



42

Recommendations


Recommendations – Government of Kerala

43

• In sectors such as Construction, Electronics, Automotive Engineering, Health

Care, Hospitality and Tourism, Communication, as part of the State

Government’s ASEP initiative through KASE

• In proposed and current projects of KSIDC e.g. rubber and apparel design

courses in Kannur, food processing, footwear design and electronics courses in

Kozhikode, IT, engineering trades and education courses in Alappuzha,

electronics trades at Kochi and Palakkad and healthcare and life sciences in

Thiruvananthapuram.

• Integrated with the infrastructure development plans (KINFRA projects) in

areas such as garments, infotainment, marine/seafood, rubber, exports, food

processing, etc. e.g. apparel & garment sector and media & entertainment

related courses for the proposed Apparel and Film & Video Park at

Thiruvananthapuram, food processing at Malappuram, etc.

Set up Very Large

Multi Skill Training

Centres

Skill Development

Centres targeted at

the unorganised

sector

• With the support of grass-root organisations such as Kudumbashree, NGOs

focused on literacy, basic numeracy and communication skills apart from core

technical skills.

Mobilize youth to

participate in skill

development

• Students may be encouraged from primary school onwards to value skills in

vocational trades such as carpentry, painting etc.

• Mobilizing greater participation in existing schemes in priority sectors such as

Tourism

• Skills competition in the lines of World skills competition at the state level.




44

• These include initiatives for the following crops- Coconut in

Kozhikode, Malappuram & Kannur, Rubber in Kottayam, Ernakulam &

Pathanamthitta, Coffee in Wayanad, Pepper in Idukki, Wayanad and

Kannur, Cashew in Kannur and Cardamom in Idukki and Wayanad.

• Similarly in Alappuzha, Thiruvananthapuram and Ernakulam for fisheries.

• For traditional industries such as coir, modern technology and mechanization

to enable competitiveness of products. Additionally, alternative sources of

livelihood to support them in case of industries like beedi making, etc.

Re-skilling and Multi-

skilling initiatives

In Traditional and

Unorganised Sectors

• Faculty development programmes may be developed with exchange

programmes with institutes in other states and even abroad.

• Create a pool of master trainers of skilled emigrants/return migrants

• Very Large Multi Skill Training Centres need to recruit highly skilled trainers

across multiple disciplines. Possible sources could be skilled, retired

personnel from the public sector and industry.

Faculty Development

• Sharing of infrastructure with private training providers like NSDC partners

• This can also be a source of internal revenue generation for the institutes

improving their viability and growth.

Leverage Training

Infrastructure




45

• MSME Development: Cluster development by providing entrepreneurship and

managerial skills in sectors like Food Processing, Ready-made garments &

embroidery, Wood/wooden based furniture, Chemical/Chemical based

products, Rubber, Plastic & Petro products and Handlooms sector

Organizations such as Kerala Financial Corporation and MSME Development

Institute-Thrissur, to encourage greater uptake of such trainings.

• Entrepreneurship Awareness Campaigns in high schools and colleges

• Specific initiatives targeted at home-makers to become entrepreneurs in sectors

such as Food Processing, Readymade Garments, Tourism/Hospitality may

be designed by organizations such as KITTS.

Entrepreneurship

Development

• Potential Emigrants:

• Assess training/certification needs of emigrants

• Track emigrants to understand the nature of occupations they engage in after

emigration through tracer studies

• Identify emerging needs in new countries and devise specific initiatives for e.g.

Training nurses in geriatric health care.

• Globally recognised certifications may be developed in co-ordination with

KASE.

• Returning Emigrants:

• Study the profile of returning emigrants in terms of education/ skill attainment

and occupational profile, and assess skilling needs. if any

• Form a pool of faculty (returning emigrants) for courses targeted towards

employment in Middle East and other countries.

Initiatives for Migrants



Recommendations – NSDC

46

• NSDC can promote private training initiatives in:

• BFSI

• Building and Construction

• Communication

• Education and Skill development

• Manufacturing – Food Processing

• Engineering Products, Rubber, Coir, Cashew

• IT/ ITeS

• Retail

• Healthcare

• Travel, Tourism and Hospitality

• Security and Facilities Management

Promote training in

priority sectors

Promote NSDC

training partners and

Sector Skill Councils

• NSDC to encourage more private training providers

• Skill Councils to participate in the standardization of curriculum and content

• NSDC can also collaborate with Sector Skill Councils to conduct detailed skill-

mapping studies in each sector to map skill levels of personnel in various

occupations with occupational roles/expectations and work experience

Initiatives for in-

migrants

• Understand specific skill gaps and training needs of migrant labour.

• On-site trainining for migrant labour

• NSDC training providers present in the places of origin of the migrants can be

connected to the industries in Kerala through industry bodies to equip them

with basic literacy, language and technical skills



Recommendations – Industry

47

• Adoption of vocational training institutes through infrastructure up

gradation, provision of technical equipment, capacity development of faculty

and industry visits

• Active participation in curriculum design and content through continuous

feedback to institutes

• Participation in placements through career guidance and counseling

workshops and recruitment drives for relevant trades.

Pro-active support of

skill development

Promote

Apprenticeships

• Industry can actively promote paid internships for vocational training students

• Since the state has 44 Public Sector Enterprises (PSEs), apprenticeship

programs can be designed and conducted in collaboration with PSEs.

Up-Skilling and

Continuous Learning

• To collaborate with industry associations and SSCs to develop skill

assessment tools for existing employees to ascertain their skill gaps and

training needs.

• To encourage employees to engage in up-skilling certifications in respective

sectors through accredited courses of short-term duration

• For flexible training options, online education can be promoted.

• Employees to actively participate in skill gap assessment and up-skilling

through appropriate awareness campaigns



Recommendations – Industry

48

Preferential recruitment or wage differential for certified applicants,

prioritizing the regularization of contract employees who opt for skill

enhancement

To provide identity cards to all sections of employees, whether in blue-

collared or white-collared jobs.

Uniforms for personnel in blue-collared jobs.

Employee benefits such as health insurance and social security

Changing mind-sets

towards blue-collar

jobs

Sector Skill Council

Collaboration

Increased membership of prominent industry players from Kerala within the

SSCs

Kerala to be positioned as a location for setting up of centres of excellence

(CoEs), in collaboration with industry bodies like NASSCOM/CII.

Centres of excellence to develop trainers for key sectors with the help of

relevant SSCs, industry associations, international training providers and

state agencies like KASE.



Recommendations – Skill Development Institutes

49

Language Training and Soft Skills: Setting up centres that function as

‘finishing schools’ which focus on providing communicative English, soft skills

training and foreign language training.

Life Skills: Provision of life skills including goal setting, career planning, self-

awareness, etc.

Promote soft skills and

life skills training

Sector Key Districts Key Skills

Building &

Construction

Ernakulam, Thiruvananthapuram,

Thrissur, Kozhikode, Malappuram,

Palakkad

• Engineers: Project Management and People Management Skills, Knowledge of

green/eco-building design, Knowledge of design and tools such as AutoCAD

• Supervisors and Workmen: plumbing, electrical works, carpentry, masonry, painting,

drilling, Attitude towards safety and quality

BFSIErnakulam, Thrissur,

Thiruvananthapuram

• Middle level managers: Banking operations, Client and team management skills,

Interpersonal and communication skills

• Officer and Trainee: Product Knowledge, communication Skills, Inter-personal skills

• Customer Service Executives: Computer skills, Basic accounting knowledge,

communication skills

CommunicationAcross districts • Customer care executive at call centre: Verbal communication especially related to

selling, Basic computer skills

• Customer care executive at repair centre: Basic knowledge of products, Documentation,

Communication

IT/ITeSThiruvananthapuram, Ernakulam

and Kozhikode

• BPO/KPO: Basic computer skills, Customer services attitude

• IT Companies: Project management skills, Entrepreneurial skills

Travel, Tourism

and Hospitality

Thiruvananthapuram, Alappuzha,

Kollam, Ernakulam, Idukki,

Wayanad, Kozhikode, Kasaragod,

Malappuram, Thrissur and Kannur

• Drivers: Communication/Language skills

• Guides: Knowledge of history/culture/nature for specialist guides, Entrepreneurial and

creative skills, Tour operations

• Hospitality: Front Office Management skills, Housekeeping skills, Customer Service

skills, Culinary and food production skills

Education & Skill

Development

Ernakulam, Kozhikode,

Thiruvananthapuram, Kottayam,

Thrissur

• Faculty and Trainers: use of modern teaching aids and activity-based learning modules,

Industry exposure or experience, Technical knowledge in trades such as fashion design;

fine arts, visual communication



Recommendations – Skill Development Institutes

50

Sector Key Districts Key Skills

Food

Processing

Ernakulam, Idukki, Alappuzha, Palakkad,

Kottayam, Thiruvananthapuram, Thrissur,

Kollam

• Plant associates and operators: Basic engineering knowledge, Process

knowledge e.g. distillation, modern production techniques, Basic understanding of

repair and maintenance- electrical and mechanical, Quality and safety awareness,

Industrial exposure for updated technology use , Exposure to industrial relations

• Material handlers: Basic computer skills including barcode reading, etc. Quality,

health and hygiene awareness (food proc.),

• Sales and marketing: Communication skills, Ability and willingness to understand

the product and manufacturing process

• Traditional Industries e.g. Coir Worker: Fibre extraction, spinning, manufacturing

Entrepreneur: managerial skills, production- planning, quality & modernization,

value addition and product diversification

Engineering

Products

Thiruvananthapuram, Palakkad, Kozhikode

Other

Manufacturing

– Rubber,

Coir, Cashew

• Rubber: Kottayam, Idukki, Kozhikode,

Wayanad, Ernakulam, Thrissur

• Coir: Alappuzha, Thiruvananthapuram,

Kollam, Kozhikode

• Cashew: Kollam

• Others: Ernakulam, Palakkad, Thrissur,

Thiruvananthapuram, Kozhikode

RetailThiruvananthapuram, Ernakulam • Front end services: Communication and customer services knowledge, Cashier -

data entry and basic computer skills

• Stocking and Inventory: Industry knowledge, Documentation skills

• Procurement, Supply Chain and Store managers: Communication Skills, People

Management skills

Healthcare• Ernakulam, Palakkad, Thiruvananthapuram

• Ayurveda: Thrissur, Palakkad

• Medical Tourism: Kozhikode, Ernakulam,

Malappuram, Thiruvananthapuram

• Nurses/ Paramedics/ Home-Care Specialists: Geriatric care, Technical knowledge

and machine operation skills, Inter-personal skills, Crisis management

• Occupational Therapy skills

• Ayurveda Nurses/Pharmacists: Panchakarma and technical knowledge about

curative medicine

Security &

Facilities

Management

Ernakulam, Palakkad, Thrissur,

Thiruvananthapuram, Kozhikode

• Security Guards: armed and unarmed training

• Cash management services: Bank ATMs operations knowledge

• Security Supervisor: Surveillance, CCTV operations, Communication Skills,

People Management skills

• Logistics back office: Knowledge of operations and ERP software, documentation

skills

• Air Cargo and Warehouse management: knowledge of DGR (Dangerous Goods

Regulations)

• Ground Service: IATA certification related skills



51 Proprietary and confidential. This information does not represent and should not be constructed as, legal or professional advice. © 2013 NSDC. All Rights Reserved

V. Namasivayam M. Ali Shariff

Senior Director Senior Manager

+91 (080) 6627 6112 +91(080) 6627 6266

[email protected] [email protected]

Arvind B. Elizabeth Mathew

Manager Senior Consultant

+91(080) 6627 6371 +91(080) 6627 6397

[email protected] [email protected]


mailto:[email protected]




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