Advantages And Disadvantages Of Informal Labour

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Of the total labour force of 475 million in India nearly 92% is in informal employment in the unorganized sector (agriculture, building and construction, textiles, retail trade, logistics and transportation) with very low levels of education. India has just a 2% trained workforce as compared to Germany (75%), UK (68%), and South Korea (96%). There are approximately 15 million new entrants into the workforce in India every year; however the net enrolment in vocational education is only 3.5 million per year, as compared to 11 million in China and 11.3 million in USA. A large portion of the informal workforce is not engaged in what the ILO calls ‘Decent Work’, but finds work in exploitative and vulnerable conditions as they find employment through informal means such as word-of-mouth references, contractors, and the like. In the absence of any bargaining power, basic freedom and mainstreaming opportunities, the vicious cycle of poverty and disadvantage gets compounded through low levels of skills.
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The National Skill Development Policy has an ambitious plan to skill about 12-15 million youth each year. About 17 ministries of the Indian Government are currently engaged in undertaking various skill development initiatives, with a combined target of imparting skills to 350 million people by 2022. Despite such lofty goals set up by GOI there has been very slow progress in achieving the target of skill development so far. Against a low target of skilling 8.5 million persons during 2012-13, only about 1.4 million persons could be trained in 2014-15 by various Ministries/ NSDC. Further, many teachers/ instructors are ill-equipped to handle the demands of the industry including updated knowledge, new technology and awareness of changing market

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