Skill Gaps and Employability: Higher Education in India

Abstract

As India grows into a knowledge economy increasing the use of technology in manufacturing and service industries, the emerging gaps at the level of tertiary education are seen as a major constraint. In this article we address the growing mismatch between skills/education and jobs/occupations. We define types of skill mismatch in the labour market, nature of tertiary education, and occupation and industry, and classify high technology and knowledge-intensive industry (KII). To understand skill gaps we analyse where persons with tertiary education are employed and whether recent years have seen a significant change in the absorption of workers with higher education (HE) in different industry and occupation groups. An analysis of skill gaps in graduate intensity of occupations and high technology manufacturing and knowledge-intensive service (KIS) industry provides a policy perspective and inputs to explore ways to address skill mismatch relating to HE. We conclude that policy that encourages non-graduate technical and non-technical diploma/certificate holders into the lower graduate-intensity occupations would help to close the skill gap and reduce the pressure on graduate HE.