2017年-世界发展银行全球_Study_on_Demand_for_Skilled_Labor_in_Unregistered_MSMEs_of_India_70页_3mb

Summary of "Study on Demand for Skilled Labor in Unregistered MSMEs of India"

Core Content

This study, conducted by the World Bank in 2017, focuses on the demand for skilled labor in unregistered Micro, Small and Medium Enterprises (MSMEs) in India. It aims to support the development of the 'Skill India Mission Operation' project by providing insights into the current and future needs of skilled labor in the informal sector, particularly unregistered MSMEs.

Key Findings

Size and Nature of the Unregistered MSME Sector

• Over the past decade, the number of unregistered MSMEs in India has increased by 97.8%, with more than 38.7 million informal businesses currently operating.
• Micro enterprises account for 99.8% of unregistered MSMEs, indicating a significant focus on small-scale operations.
• As of 2016-17, the manufacturing sector accounted for 32.7% of all unregistered MSMEs, down from 52.6% in 2006-07.
• 60.2% of unregistered MSMEs operate in rural areas, highlighting the sector's rural presence.

Employment and Workforce Profile

• The unregistered MSME sector employs 77.7 million labor force participants.
• 10 million of these are women, representing 12.9% of the total workforce.
• Only 8.6% of the workforce is considered skilled, despite the sector's substantial size.
• 38 million skilled employees are currently needed, with 28.2 million expected to be trained from the existing workforce and the rest from new entrants.
• 5.6 million skilled women employees are required, contributing to the gender inclusion goals of the 'Skill India Mission'.

Impact of Skilled Labor

• A formally skilled employee can earn up to 2.5 times more than an unskilled one, with an estimated INR 6,000 monthly increment at the national level.
• Skilled labor is associated with a 0.4% increase in business profitability per one percent increase in skilled workforce.
• 63% of entrepreneurs believe that hiring skilled employees will positively impact business productivity.

Economic Significance

• The unregistered MSME sector contributes significantly to India's economy and is a major employer of non-farm labor.
• Over the past five years, the sector has invested USD 76.2 billion in the economy.
• The sector has a credit requirement of USD 43.4 billion, which, if met, could drive further growth.

Socio-Economic Profile

• Women-owned MSMEs account for 12.1% of total unregistered businesses, with a 3% increase in their share over the past decade.
• Low-income states (Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Rajasthan, Uttar Pradesh) account for 33.9% of unregistered MSMEs.
• SC, ST, and OBC entrepreneurs make up over 60% of the unregistered MSMEs, showing a diverse ownership base.
• Marginalized groups are more inclined to include members from their own community in their workforce.

Training and Awareness

• Only 2.3% of the total workforce has undergone formal skill training.
• 46% of service sector MSMEs and 68% of manufacturing units prefer candidates with formal skills certification.
• 62% of entrepreneurs are interested in sending employees for training.
• Awareness of Entrepreneurship Development Institutes (EDIs) is limited, suggesting a need for better outreach.

Future Workforce Needs

• By 2022, India's workforce average age is expected to be 29 years, with 54% of the population under 25.
• The government estimates that 400 million individuals will need access to formal skills training by 2022.
• 105 million new entrants will join the workforce over the next seven years, requiring training channels.

Main Recommendations

• Target business clusters for skills training to enhance the reach and impact of training programs.
• Develop short-term skills training programs (3–12 months or up to 600 hours) to meet the growing demand for semi-skilled labor.
• Increase awareness of government schemes supporting MSMEs and skill development.
• Strengthen formal skills training infrastructure to meet the needs of both employees and entrepreneurs.
• Focus on gender inclusion by addressing the specific needs of women in the unregistered MSME sector.

Key Information

• The study is based on the 2006-07 MSME census and 2013-14 government extrapolations, with Chhattisgarh as a case study.
• Extrapolated national estimates are used to project the demand for skilled labor and the potential economic benefits.
• The unregistered MSME sector is a crucial driver of employment and economic growth, particularly in rural and low-income areas.
• Formal skills training can significantly improve business productivity and employee wages.
• The Skill India Mission is well-positioned to benefit from the insights of this study, especially in terms of targeting the unregistered MSME sector for effective skill development interventions.

Methodology and Data Sources

• The study uses census data from 2006-07 and government extrapolations from 2013-14.
• Primary data from Chhattisgarh is used to adjust and validate the extrapolations.
• Data is analyzed using per capita GDP, female labor force participation, and sector-specific employment trends.

Conclusion

The unregistered MSME sector is a vital part of India's economy, offering substantial employment opportunities and contributing to the country's economic growth. However, it faces significant challenges in terms of skilled labor shortages, low productivity, and limited access to formal training programs. Addressing these challenges through targeted skills training and policy interventions can enhance the sector's productivity, competitiveness, and socio-economic inclusivity. The study underscores the importance of formal skills training and business cluster targeting in achieving these goals.