Over 72% of Indian employers keen to recruit apprentices in 2022: Report

Over 72% of employers are interested in appointing apprentices this year. The Net Apprenticeship Outlook (NAO) has soared to 56% for the current half-year. It records an increase of 11% as compared to the previous half-year. This is stated in the latest edition of the Apprenticeship Outlook Report for H1 (January to June 2022) released by TeamLease Skills University.

Over 72% of employers in India looking to recruit apprentices in 2022

The positive sentiment for apprentices is across sectors. Out of the 18 sectors surveyed in the report, employers across 10 sectors have a positive outlook to appoint more apprentices. Engineering (82%), Automobiles & Ancillaries (74%), and Retail (70%) have emerged as leaders. The net apprenticeship outlook for some of the sectors has also improved. Automobile and Agriculture have witnessed the most significant HY-on-HY NAO growth (16% and 15% respectively) amongst all sectors, followed by Telecommunication & BFSI (14% HY-on-HY growth each). Additionally, the NAO for other sectors stood at – Engineering: 82%, Automobiles & Ancillaries: 74%, Retail: 70%, the outlook report suggests.

Sharing his views about the industry and the report findings, Sumit Kumar, Vice President - NETAP, TeamLease Skill University, said  “When it comes to adoption of apprenticeship in India, the last five years have been very rewarding. Employer sentiment has drastically improved on account of awareness and the reforms in the apprenticeship system, with more employers coming to the forefront and engaging more apprentices. The finding of the report that 72% of employers have expressed to engage more this fiscal is fortifying the sentiment further, and indicating that the adoption is here to stay and grow. The positivity is not restricted to employers, more aspirants now look at apprenticeships as a beneficial method to enter formal employment. They have understood the merit of apprenticeships in enabling them to earn as well as study, thus giving them the necessary experience and increasing their chances of shaping their career.”

“However to further scale apprenticeships in India to its true potential, it is important to create a framework for faster adoption and implementation of apprenticeships programs. The New Education Policy has laid the foundation for this already. We need to fast track NEP and ensure that there is better preparedness amongst employers and academia to adopt apprenticeships. A tripartite association between academics, industry and youth will go a long way in boosting these programs. The recently launched degree embedded programs by UGC are the game-changer in education which will address youth employability, solves skill crisis and achieve the gross enrollment ratio objective. We have the potential to reach 10 million apprentices in 10 years, provided necessary actions are undertaken to have the university as an integral of the apprenticeship system, all universities are allowed to offer blended learning methods (online and on-site, along with on the job) for degree apprenticeships”, added Mr Kumar.

Outlook Report Highlights

A deep dive into the regions appointing apprentices, the report highlights that Chennai, followed by Ahmedabad and Delhi are the top regions where 75%, 72% and 70% of employers, respectively, are planning to appoint more apprentices. From a net apprenticeship outlook perspective, Chennai is at 75% (a 10% growth), Ahmedabad at 72% (3% growth) and Delhi is at 70% (12% growth).

Aligned with the previous year, the intent to appoint trade apprentices continues to be higher than graduates and degree apprentices. From the profile/roles point of view, the top profiles (and their net apprenticeship outlook) across these categories were - Data Analytics Executives (23%, under Graduate Apprentices), Production Apprentices (20%, under Trade Apprentices) and Maintenance Technician-Electrical (20%, under Designated Trade Apprentices).

The Apprenticeship Outlook Report is a detailed survey, covering 14 cities and 18 leading sectors. The report has surveyed 871 employers and captures the appointment sentiment for the period HY (January to June) 2022.

Key Findings

The Net Apprenticeship Outlook (NAO) soars to 56% for the current HY (Jan – Jun 2022) – an increase of 11% over the previous HY).

During the current HY 72% of employers are likely to increase their hiring of apprentices. This has increased from 64% in the previous HY and 58% in Jan – Jun 2021

The top three sectors across the Manufacturing Industry

• Engineering-82%
• Automobile and Ancillaries-74%
• FMCG & D-59%

The top three sectors in Services Industry

• Retail-70%
• Logistics-64%
• BFSI-63%

Top 3 cities from Metro with highest NAO

• Chennai- 75%
• Delhi-70%
• Bengaluru-62%

Top 3 cities from non-Metro with highest NAO

• Ahmedabad-72%
• Kochi-50%
• Lucknow-47%

Top category of apprentices

• Trade apprentices-80%
• Optional trade-69%
• Designated trade-64%
• Top 3 preferred skills
• Technical Knowledge
• Willingness to learn
• Remote / Hybrid Work

Key hiring challenge in the current HY (Jan – Jun 2022): Jobseekers prefer employment over apprenticeships, as per 30% of the employers surveyed. Previous HY: Compensation related issues (26%).

Data Analytics Executives (23%, under Graduate Apprentices), Production Apprentices (20%, under Trade Apprentices) and Maintenance Technician-Electrical (20%, under Designated Trade Apprentices) are the most sought after job profiles for the current HY.