There is a 75% surge in apprenticeship opportunities across India which exhibits a noteworthy 9% growth over the quarter of Jan-Mar 2023, said a new report by TeamLease Degree Apprenticeship.
The 2023 Apprenticeship Outlook Report, showcased the Net Apprenticeship Outlook (NAO) metric, a key 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.
The Net Apprenticeship Outlook (NAO) has increased significantly Year-Over-Year (YOY), from 41% in Jan-Jun 2021 to 56% in Jan-Jun 2022 and 66% in Jan-Mar 2023 to an astounding 75% for the Oct-Mar 2023–24 period. This Compound Annual Growth Rate (CAGR) of nearly 30% showcases how organisations view apprenticeships as a pivotal talent development strategy, driving skill enhancement, workforce development, and talent pipeline creation.
The HY1 Apr-Sep’23 and HY2 Oct’23 to Mar’24 Apprenticeship Outlook Report revealed a compelling landscape, highlighting Engineering & Industrial (96%), Electrical & Electronics (94%), Telecom (93%), and Ecom & Tech products (90%) as the leading sectors with the highest Net Apprenticeship Outlook (NAO).
Notably, these industries, along with five others, witnessed a significant increase in NAO during the Oct-Mar 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.
The report brings to light an insight—41% of employers believe that degree apprenticeships stand as 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.
This 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.
Employer satisfaction and reasons for apprentice engagement
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.
Gender preferences and workforce expansion anticipation
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 Manufacturing sector are Engineering & Industrial (20%), Automobile & Ancillaries (17%) and Electrical & 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.
City-wise Trends: Bengaluru leads with a 17% increase in NAO
Among the metro cities, five out of six exhibit an increase in NAO for the Oct-Mar 2023-24 half-year, Bengaluru leading with 85%, followed by Delhi at 82% and Hyderabad at 80%. The top three industries engaging apprentices in Bangalore are Engineering & Industrial (89%), BFSI (86%), and Retail (82%).
Employer strategies and structured training programs
Structured training programs (53%) and regular mentoring and coaching (41%) emerge as the preferred strategies for engaging apprentices, reflecting a commitment to their development. A significant 78% of employers report that over half of their apprentices successfully complete their training.
Top reasons for employers foreseeing an increase in apprenticeship hiring include real-time skill availability (35%) and business growth (21%). These statistics underscore the vital role apprentices play in contributing to tangible business outcomes.
Apprenticeship categories in demand
Optional Trade (82%), Designated Trade (80%), and Diploma Apprenticeship (77%) top the list of sought-after apprenticeship categories. Fitter/Mechanical Assembly (31%), Production Engineer (26%), and Computer Networking Technician (19%) are the most in-demand career opportunities in Optional/Designated Trade, while Machinist (22%), Production Apprentice (16%), and Mechanic (12%) are the top three roles in Trade Apprenticeships.
In a Diploma Apprenticeship, the roles are Technical Service Engineer (25%), Machine Operator (18%), and Data Analyst (15%). In Graduate Apprenticeships, positions such as Electrical and Electronics Engineer (25%), Mechanical Engineer (17%), and Automobile Engineer (14%), are highly sought after.
Sumit Kumar, chief business officer, TeamLease Degree Apprenticeship, said, “The primary reasons driving the growth are real-time skill availability, cost effectiveness, and driving community engagement under CSR. Also, initiatives from Govt. like PLI and Make in India are driving the employment opportunities for which employers are relying on apprenticeships to build a talent pipeline.”
Dhriti Prasanna Mahanta, vice president, TeamLease Degree Apprenticeship, added, “The total number of apprentices employed over the last five years has increased by 30%, and growth in the retail, BFSI, and logistics industries is predicted to reach 67% during the next 3 years.”
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