Employers in India are facing a strange problem. While just 28% of jobseekers land a job before they graduate, up to 36% of available jobs remain vacant for want of candidates with requisite skills.
A survey by McKinsey Global Institute of 8,500 respondents across nine countries shows that India has the highest number of average entry-level vacancies in firms due to inadequate talents. Only 43% of employers agree that they can find enough skilled entry-level workers.
Nearly 10% of jobseekers spend over a year in job-hunting after completing their courses. Desperation forces nearly 25% of jobseekers toward part-time or interim work before they land their first proper, full-time job.
The survey report said this could lead to a global shortfall of 8.5 crore high- and middle-skilled workers by 2020 and precipitate violence in sections of society.
Besides, institutes which produce graduates in hordes and employers have different opinions over employability of candidates. While 83% institutes in India feel their graduates are adequately prepared for their careers ahead, just 51% employers agree.
Employers from segments like education, finance and health care feel their new hires are well-prepared. Madhumurthy Ronanki, president of talent management firm TalentSprint, said, “The mismatch between candidate capabilities and employer expectations means almost all firms have to impart at least three to six months’ training for their new hires before they become productive.”
Experts say top firms, specially those from IT, banking and finance sectors, spend Rs2-5 lakh per candidate just to make them job-ready and this includes the costs related to training, infrastructure, accommodation and stipends.
Amit Bhatia, CEO of employability and education firm Aspire, said other than products of top institutes, others usually run from pillar to post figuring ways to get a job. “Three out of four kids are jobless at the time of graduation.”