12 of 24 industries see growth in their net apprenticeship outlook (Representative Image)
In addition, 23 percent of employers believe that apprenticeships help open business development opportunities
India’s privately-owned TeamLease Degree Apprenticeship, from TeamLease Services, has launched its Apprenticeship Forecast Report for Q4 2022 (January-March 2023), which provides a comprehensive analysis of the current apprenticeship placement sentiment. The report shows that 79 percent of employers expect to increase student enrollment in the fourth quarter of 2022 (January-March 2023), compared to 77 percent in the second half of 2022. Interestingly, more employers (about 37 percent) are increasing their consumption of apprentices as they are real-time skilled talent available in the market. In addition, 23 percent of employers believe that apprenticeships help open business development opportunities.
However, the overall NAO has seen a marginal decline of 3 percent in the current quarter (January-March 2023) compared to the previous half-year (July-December 2022). In this report, this is primarily due to an increase in the number of employers (up from 9 percent to 13 percent) who anticipate a decrease due to regulatory uncertainty around certain programs and macroeconomic fluctuations.
12 of the 24 industries will see their net scholarship projections increase. Large businesses have the highest NAO (69 percent, up from 65 percent in July-December 2022), while SMEs have declined (64 percent, down from 71 percent). There has been steady growth in apprenticeships in key sectors such as mechanical engineering and manufacturing, which top the list with the highest NAO (90 per cent), Electrical and Electronics (88 per cent) and BFSI (74 per cent). 94 percent of engineering and industrial employers, 93 percent in electrical and electronics and 85 percent in BFSI are committed to increasing apprenticeship participation.
Sharing his views on the industry and the findings of the report, Sumit Kumar, Chief Business Officer, Degree Scholarships, Manufacturing, TeamLease said, “India Inc. This is great to see as we continue to recognize the prowess of apprentices in developing a strong talent network. in the quarter, the share of employers willing to expand participation with apprentices increased. Employers understand that apprentices with a degree connection have better qualifications. Moreover, even other stakeholders are taking initiatives to increase the adoption of apprenticeships in India. For example, increased outreach by the government has helped improve awareness. In addition, even the budget has announced scholarship support to 47 lakh youth over the next three years, on-the-job training through PMKVY and direct grant distribution under the Indian National Apprenticeship Incentive Scheme. Subsidy support is a great enabler for the apprenticeship landscape in India as it provides a huge impetus to catalyze the supply and demand side and popularize apprenticeship participation. However, in the current quarter, we saw a decline in overall NAO due to the industry’s regulatory and economic challenges. To take apprenticeships to the next level, organizations must expand their efforts to meet unprecedented challenges.”
In terms of location, all metro cities are expected to grow. Hyderabad has the highest NAO (78%), followed by Delhi (74%) and Bengaluru (68%). 83 percent of employers in Hyderabad, 82 percent in Delhi, 80 percent in Bengaluru and 81 percent in Chennai are willing to increase recruitment. At the bottom, Kolkata (42%) has the lowest NAO, with only 68% of employers predicting an increase. Non-metro cities are also predicting an interesting trend. For Coimbatore (79 percent), Nagpur and Pune (76 percent each) and Ahmedabad (70 percent), the NAO continues an encouraging trajectory. 84 per cent in Coimbatore, 85 per cent in Pune, 86 per cent in Nagpur and 83 per cent for Ahmedabad predict an increase in placements.
The Apprenticeship Outlook Report is an in-depth study of apprenticeship participation in India covering 14 cities and 24 industries. The report surveyed 597 employers and covers assignment sentiment for Q4 2022 (January-March 2023).
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