There is an unprecedented 75% surge in apprenticeship opportunities across India. This marks a 9% growth over the January-March, 2023 quarter, revealed by TeamLease Degree Apprenticeship Outlook Report. The Net Apprenticeship Outlook (NAO), a crucial indicator of employer sentiment, has reached an all-time high, signalling a remarkable 75% increase in employer intent for apprenticeship engagement during the upcoming October-March 2023-24 half-year, according to the report.
NAO has seen significant Year-Over-Year (YOY) growth, rising from 41% in January-June, 2021 to 56% in January-June, 2022 and further to 66% in January-March, 2023. The NAO has now reached an astounding 75% for the October-March, 2023–24 period. This Compound Annual Growth Rate (CAGR) of nearly 30% reflects how organisations perceive apprenticeships as a pivotal talent development strategy, driving skill enhancement, workforce development and talent pipeline creation, the release mentioned.
The HY1 April-September, 2023 and HY2 October, 2023 to March, 2024 Apprenticeship Outlook Report highlights a compelling landscape, with Engineering and Industrial (96%), Electrical and Electronics (94%), Telecom (93%) and Ecom and Tech products (90%) leading as the sectors with the highest Net Apprenticeship Outlook (NAO). Notably, these industries, along with five others, have witnessed a significant increase in NAO during the October-March, 2023-24 half-year compared to the preceding quarter. This trend indicates robust growth prospects for apprenticeships, affirming their pivotal role in shaping the workforce of the future, as per the release.
“The primary reasons driving the growth are real-time skill availability, cost effectiveness, and driving community engagement under CSR. Also, initiatives from the government such as PLI and Make in India are driving the employment opportunities for which employers are relying on apprenticeships to build a talent pipeline. 63% of employers have reported satisfactory performances of the apprentices, which is encouraging for employers to scale up the intake,” Sumit Kumar, chief business officer, TeamLease Degree Apprenticeship, said.
The Apprenticeship Outlook Report reveals a pivotal insight—41% of employers believe that degree apprenticeships are a formidable strategy to effectively address the skill gap through seamless industry-academia collaboration. This recognition underscores the transformative role of apprenticeships in shaping a future-ready workforce, emphasising a strategic commitment to talent development, skill enhancement, and the establishment of a robust talent pipeline. As the report illuminates, this insight marks a significant leap toward fostering a skilled and promising future for India’s workforce.
This extraordinary surge underscores the robust growth anticipated in India’s apprenticeship landscape, with key cities such as Bengaluru, Delhi and Hyderabad leading the charge. The report unveils a transformative phase for India’s workforce, promising unparalleled opportunities for skill development and career growth.
Furthermore, 70% of employers engaged apprentices during April-September HY1, 2023, with 63% expressing satisfaction with apprentice performance. Employers cited ‘addressing skill shortages,’ ‘cost-effective talent development,’ and ‘strengthening community engagement and CSR efforts’ as major reasons for engaging apprentices.While 45% of employers have no gender preferences, others showcase a preference for female candidates, especially in Services sectors like BFSI (21%), Retail (18%) and in the Manufacturing sector, Engineering and Industrial (20%), Automobile and Ancillaries (17%) and Electrical and Electronics (13%). Additionally, 47% of employers anticipate a workforce increase of up to 10% during HY2: Oct – Mar, 2023-24, signifying a positive trajectory for apprentice engagement, the report revealed.
“Apprenticeships emerge as the key to unlocking greater opportunities for female candidates in the evolving retail sector of India.” In the retail industry, the percentage of women working is 25–30%, while it is 60–75% in the US and the UK. It is evident that a considerable increase in the women’s labour participation rate is facilitated by apprenticeships, Dhriti Prasanna Mahanta, vice president, TeamLease Degree Apprenticeship, said.