Hyderabad, Nov 6 (UNI) Fifty three per cent of employed youth suffer some degree of skill deprivation while 57 per cent of the country's youth were suffer from some degree of unemployability, according to 'India Labour Report-2007'.
The report, released by TeamLease Services, India's largest staffing company and second largest private employer, said ''the skill deficit was more dangerous than infrastructure deficit because it amplifies inequality.'' The report said spending 10 per cent of GDP (Rs 4,90,000 crore) on skill development would generate extra income of 61 per cent of the GDP (Rs 1,751,487 crore). This was more than 600 per cent return on investment, it said.
The report warned that our demographic dividend would become a curse unless there was a radical overhaul of India's education and training regime.
The key highlight of the report was that 90 per cent of employment opportunities require vocational skills but 90 per cent of college and school output has only bookish knowledge. High drop out rates, 57 per cent by Grade eight, were due to low returns of education.
Poor quality of skills show up in low incomes rather than unemployment. Fortyfive per cent of graduates make less than Rs 75,000 per year. Fifty per cent self-employment does not reflect entrepreneurship, it said.