Inderpal Singh & Gaganjyot Kaur Narwal
For a long time now, unemployment and underemployment have remained two of the key issues in Punjab’s development question. The India Employment Report 2024 by the International Labour Organisation and the Institute for Human Development created an employment condition index which showed that for Punjab, the index was 0.45 in 2005 which in 2022 stood at 0.53. The ranking for Punjab on this index fell from 13 in 2005 to 16 in 2022. Similarly, the Periodic Labour Force Survey shows the unemployment rate in Punjab to be 7.7%, which is above the national rate of 6.7%. In another research, Dr. Lakhwinder Singh, a visiting professor at the Institute for Human Development, New Delhi, found that “80% of youth employed in Punjab are highly dissatisfied with their jobs. This is highest across Indian States.” This is an alarmingly big number and points towards a serious issue within Punjab’s employment policy.
One major factor pulling back Punjab in its employment scenario is its challenge for skill development. After a nationwide policy on skill development in 2009, the Government of Punjab initiated its own in 2014 with the aim to streamline all skill development initiatives under a single window—Punjab Skill Development Mission (PSDM). PSDM aims to establish a bridge between education and industry. However, the challenge is far from resolved. The PSDM 2014 targets youth aged 18-35 years, across both rural and urban areas. The mission aims to prepare youth for employment in sectors like healthcare, media & entertainment, retail, beauty, construction, electronics and hardware, food processing, and IT/ITES. It also emphasises establishing coordination and statewide inclusivity. Executive decisions have supplemented these efforts by integrating employment with skill training. Other efforts in the area include the establishment of Industrial Training Institutes (ITIs), Polytechnic Colleges, and specialized vocational training centres. The government aims to make skilled manpower available in sectors like electronics, construction, healthcare, information technology, and renewable energy.
Punjab’s state budget is also an important indicator of government focus on any issue. For FY 2024-25, Rs 179 crores was allocated towards skill development. Rs 46 crores was further earmarked for initiation of Punjab Hunar Vikas Yojana. Also in 2024, the budget included setting up 40 Schools of Applied Learning, where high-tech vocational labs will be constructed.
In addition, Punjab has been implementing both central sector and centrally sponsored schemes focusing on skill development and employment. These schemes include, Pradhan Mantri Kaushal Vikas Yojana (PMKVY), which targets youth without jobs or those who have dropped out of school or college, regardless of their urban or rural origin. Poor urban youth are the focus of the Deendayal Antyodaya Yojana National Urban Livelihood Mission (NULM), while poor rural youth are trained under the Deendayal Upadhyay Gramin Kaushal Yojana (DDUGKY). SANKALP- Skill Acquisition and Knowledge Awareness for Livelihood Promotion, is an umbrella scheme under the Ministry of Skill and Development and Entrepreneurship. The National Apprenticeship Promotion Scheme (NAPS) is a government program that provides financial support to employers and apprentices to encourage companies to offer apprenticeship opportunities
Various CSR initiatives are also centred around skill development in Punjab. Some notable companies that have undertaken such initiatives include Nestlé, which supported skilling for agriculture, food processing, and retail sectors; Mahindra and Mahindra, which focused on automation and technology; and JCB India, which worked on heavy equipment operations, mechanics, and engineering.
But have these initiatives really done enough to help the state upskill its youth and make them industry-ready?
Under PSDM, more than 21,000 youth have been trained so far with more than 7,500 placed. However, the placement rates are much lower than needed. A huge gap exists between the skills provided and the skills needed in the industry. This highlights a fundamental issue, not just in the state of Punjab, but generally: the skills are not in sync with industry standards. Graduates from ITIs and polytechnics often find themselves unemployed. As per the recent Periodic Labour Force Survey (PLFS) July to September 2024, the unemployment rate in urban areas stood around 5%, whereas across India it is 6%. For women, the situation is worse. To give a thrust to women’s employability, the Punjab State Women’s Development Corporation was established with the aim to train women in non-traditional sectors like entrepreneurship, IT, and design. Unfortunately, the unemployment rate for women (15 years and above, urban) is 7.8% whereas for males it is 4.2%.
Despite these endeavors and figures, skill development remains at subpar levels in the state. Quantitative expansion has not resulted in the desired qualitative impact.
The problem of the gap between skills acquired and skills needed in industries is heightened in an agrarian state like Punjab. The youth of Punjab, especially those from rural areas, are trained in agriculture, whereas industries producing jobs are in IT, communications, and other sectors as the global economy expands. As a result, the youth find themselves underemployed in low-paying, low-skill jobs despite having education. Even as they move away from agriculture, the youth are not able to find areas where their skills are useful. According to Col Jasjit Singh Gill, former member of the State Task Force of Buddha Darya Rejuvenation Project, there exists a section of skilled persons who fall under what may be referred to as the PLAR (Prior Learning Assessment and Recognition) segment. This term is majorly used in some western nations where both skills and education keep getting upgraded. In India, this segment remains unregulated as India lacks non-formal training certification. Hence, a large segment of the unemployed comprises people who are skilled but don’t have a formal certificate to prove their skills and experience. Some campaigns by the government to include the prior learning skills of millions of skilled Punjabis in new industrial policy can go a long way, helping bring them into mainstream employment. This raises a requirement to take into fold the large number who have been left out of formal technical and education training.
The policies of the state often run into implementation challenges. Even though they sound perfect when in black-and-white, a lack of adequate infrastructure, trained manpower, resources, funds, corruption, etc., result in skill development initiatives yielding suboptimal results. Governance issues reduce optimum outcomes. The gap between skills acquired and skills needed in industries — will remain fundamental in determining how the future pans out. The onus lies on policymakers and implementers to correctly identify the intervention points and how these interventions are to be made. Mere focus on developing skills won’t suffice. A holistic approach is needed to map out different stages, from primary education to old-age benefit schemes, for the effective utilization of this large pool of youth. Punjab has to devise effective ways so that the citizens can contribute to its development and push the state out of economic stagnation.
The state needs to diversify and expand its economy. In a fast changing digital world, Artificial Intelligence (AI) is a potent sector which Punjab can cash in on and train its youth to stay ahead of the curve and be a frontrunner in AI. Evidently, one way will be to train the future workforce in AI capabilities. In addition to this, the state must invest in industries such as IT, renewable energy, and biotechnology, while upskilling youth targeted for these industries.
Another way to keep abreast with the emerging technology will be to upskill the current workforce in government and private sectors by asking the universities of the state to bring in short term courses for upskilling the existing workforce to face a world run on AI and other such technologies.
At times, the policies made in Chandigarh are unable to seep down to the last mile. This is where the role of civil society and local bodies comes in. Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs) are very powerful institutions when used aptly and with the right policy. The issue of Skill development is also not divorced from the general condition of Punjab’s economy. The state’s public debt is rising and tax revenues remain insufficient. Punjab’s capital is increasingly flowing out of Punjab in search of more attractive pastures.
It is just a matter of the right equation of economics, politics and policy before Punjab embarks on a “Skill revolution”, emerging as a hub of talent and innovation.
Inderpal Singh is a Political Science graduate from St. Stephen’s College, University of Delhi. He was previously a research intern at Asia Society Policy Institute, Delhi
Gaganjyot Kaur Narwal worked as a Policy and Engagement Intern at PANJ Foundation.