The Union Minister of State (I/C), Ministry of Skill Development and Entrepreneurship and Minister of State, Ministry of Education, Shri Jayant Chaudhary unveiled a report titled “Skills for the Future: Transforming India’s Workforce Landscape,” developed by the Institute for Competitiveness.
The 230 page report shows that 88% of the Indian workforce is relegated to 5 key low-competency sectors, namely IT and ITeS, Textiles and Apparel, Electronics, Healthcare and Life Sciences, and Beauty and Wellness.
The report uses the Periodic Labour Force Survey (PLFS) data, which shows that these five key sectors accounted for 66% of vocational training. The Periodic Labour Force Survey (PLFS) records occupations based on the National Classification of Occupations (NCO) formulated by the Ministry of Labour and Employment. Per the skills report, only 10-12% occupy high-competency roles.
Here’s an excerpt from the report that shows a skills, education, and jobs mismatch and a complex job landscape in India.
The NCO has assigned skill levels to occupations based on the expertise required to perform a job. In the same manner, educational qualifications are also assigned that correspond to the skill levels, representing the qualifications that are appropriate for the professional requirements.
Per the report,
63.26% of workers have an educational level 4 and are employed in the same education level category. However, 28.12% of workers are doing jobs related to NCO (4-8)—clerks, shopkeepers, plants and machinery operators. This suggests a potential mismatch in the labour market, as these jobs may not fully utilize the skills and knowledge acquired by highly educated workers.
The report adds,
Meanwhile, 38.23% are doing skill level 4 jobs with a graduate level of education, indicating that there may be a surplus of workers qualified for higher-level jobs who are not achieving the full potential of their education. This discrepancy highlights the need for better alignment between educational attainment and employment opportunities to ensure workers can effectively contribute to the economy.
The report further states that the rise in employment in the complex job landscape must be paired with a concerted effort to elevate the quality and appropriateness of jobs, addressing the pressing issues of underemployment and job mismatch.
88% of India’s workforce in low-competency occupations: IFC Reporthttps://t.co/p8TWOVGcv4
— Economic Times (@EconomicTimes) June 30, 2025
Union Minister of State Jayant Chaudhary (@jayantrld) unveils report on “Skills for the Future: Transforming India’s Workforce Landscape”, developed by the Institute for Competitiveness (IFC)
Skilling is to be understood not merely as a supply-side intervention, but as a… pic.twitter.com/gc3PHGTtjg
— PIB India (@PIB_India) June 27, 2025
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