Engineering, Electronics, and E-commerce reports an increase in Apprenticeship: TeamLease Degree Apprenticeship

Engineering, Electronics, and E-commerce reports an increase in Apprenticeship: TeamLease Degree Apprenticeship

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ABHAY
ABHAY ANAND
Manager Editorial
New Delhi, Updated on Dec 1, 2023 16:56 IST

41% of employers believe that degree apprenticeships stand as a formidable strategy to effectively address the skill gap

TeamLease Degree Apprenticeship unveils the 2023 Apprenticeship Outlook Report, showcasing an unprecedented 75% surge in apprenticeship opportunities across India which exhibits a noteworthy 9% growth over the quarter of Jan-Mar 2023.

The Net Apprenticeship Outlook (NAO) metric, a key indicator of employer sentiment, has reached an all-time high, signaling 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 organizations view apprenticeships as a pivotal talent development strategy, driving skill enhancement, workforce development, and talent pipeline creation.

The Apprenticeship Outlook Report brings to light a pivotal 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, emphasizing a strategic commitment to talent development, skill enhancement, and the establishment of a robust talent pipeline. As the report illuminates, this insight marks a significant leap toward fostering a skilled and promising future for India's workforce.

This extraordinary 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

An encouraging 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: Bangalore 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, Bangalore leading with an impressive 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%).

Sumit Kumar, Chief Business Officer at TeamLease Degree Apprenticeship, remarked, “It's encouraging to note that the percentage of businesses eager to boost their apprentice involvement in the quarter has improved as India Inc. continues to recognize the value of apprenticeships in building a robust talent pool. Over the last three years, the net apprenticeship outlook has gone up from 41% in 2021 (Jan - June 2021) to 75% (Oct 23 - March 24) which is an all-time high. 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.”

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About the Author
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ABHAY ANAND
Manager Editorial

Abhay an alumnus of IIMC and Delhi University, has over a decade long experience of reporting on various beats of journalism. During his free time he prefers listening to music or play indoor and outdoor games.