As per Census, 2011, over 31 per cent of the total population lived in urban areas and estimates suggest that this will rise to over 50 per cent by 2050. As cities increase in number and existing cities become larger and denser, the pressure to support livelihoods will keep mounting. The changing technological landscape in manufacturing and service industries, and further mechanization of agriculture, is expected to lead to more robust job growth in urban areas. It is estimated that over the next two decades, about 70 per cent of the new jobs will be created in urban India.

Developing the Skills Ecosystem

• The National skill Development Policy was released in 2009 and the National Skill Development Corporation (NSDC) was established with a mandate to skill 150 million people by 2022. Structured as a PPP with government ownership restricted to 49 per cent of the equity, majority ownership of NSDC rests with the private sector with the shareholdings equally dispersed among 10 Chambers of Commerce and sector-specific industry organizations.
• The skills landscape in India has evolved considerably, with 22 Ministries offering various type of skill training programs. Recognizing the need for a consistent policy direction and outlook on skills, the Skill India Mission was launched.
• The skilling ecosystem is being complemented by a parallel effort to broaden access to formal financial services which is essential to promote self-employment opportunities. The JAM+ architecture, comprising of Jan Dhan, Aadhar, and Mobile based services has led to achievement of financial inclusion.
• An integrated approach to support both wage employment and self-employment is part of the Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM), under the Ministry of Housing & Urban Affairs (MoHUA). This Mission has been working towards creating livelihood opportunities for the poor and vulnerable population, in all the statutory towns.

Multi-dimensional Livelihoods Strategies

• City Livelihoods Centers (CLCs) established under the Skill India Mission help to organize the informal hyper-local services sector at the Urban Local Body (ULB) level.
• Self-employed and freelancing service providers such as electricians, carpenters, plumbers, painters, tailors, tutors etc. are registered at the CLCs and customers can access these services by calling the CLC.
• CLCs also provide marketing support to microenterprises.

Employment through Skill Training & Placement

• The ESTP component aims to enhance employability of the urban poor.
• The emphasis is on wage and self-employment through placement focused, outcome driven skill training programs.
• To ensure that the programs respond to domestic demand, a skill gap study has been conducted. Candidates are selected through a screening process and counselled, so that they can choose courses, aligned to their aspirations as well as the industry demand.
• The mode of training is primarily short-term skill training courses ranging from 3 to 6 months.

Self-Employment Program

• The Self-Employment component of the Mission support individuals and groups to establish micro-enterprises by facilitating bank loan @ 7 per cent ROI. Three types of subsidized loans are offered.
• Capacity Building under the Entrepreneurship Development Program is provided to beneficiaries to provide knowledge and skills, needed to sustain and grow micro enterprises.

DAY-NULM Mission Evaluation and New Initiatives

• In order to address the gap identified through the mid-term evaluation, DAY-NULM has undertaken a major initiative to set up a web portal for interest subvention – which has enabled the transfer of interest subvention directly to the loan accounts of the beneficiaries through Direct Benefit Transfer (DBT).
• MUDRA loans which are already available at subsidized rates of interest have also been made eligible for interest subvention through DAY-NULM as a convergence measure.
• The Mission is making strides towards enhancing placements of trained candidates by engaging models and through partnerships with private sector players in high growth sectors.
• A mechanism to get direct feedback from trained candidates has been introduce, called PARAS (Personalized Rapid Assessment System), which is helping States to assess and improve their training programs
• A ranking system called SPARK has been introduced to induce completion among the states based on outcome parameters of the Mission.

Recognizing and Addressing Key Risks

• As Ministry of Housing and Urban Affairs looks towards the future, its priorities are evolving based on the emerging risks and opportunities. Three key national challenges being addressed by the Mission are –

1. Informal nature of employment
2. Lower participation of women in the labour force
3. Capacity constraints of the implementing agencies

Formalizing the Urban Informal Workforce.

• Trends show that the high rate of urbanization in the country is not accompanied by a proportionately high rate of formalization, with more informal enterprises being added to urban areas.
• Informal sector outcomes are likely to reflect the economic impact of urbanization, as much as the formal.
• Sectors such as construction and sanitation employ a large proportion of the informal urban force and have the worst health and safety conditions.

DAY-NULM is addressing this challenge through two initiatives.

1. First, Recognition of Prior Learning (RPL) has been adopted in convergence with the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), as a mechanism to recognize, certify and formalize those who have acquired skills informally. The RPL process and certification, especially in vulnerable sectors such as construction and sanitation, is expected to improve health and safety standards, enable informal workers to take pride in their skills, and move up the qualification levels.
2. Further, the mission is also doing its bit to build capacities of the sanitation workers and promote green livelihoods in collaboration with the Sector Council for Green Jobs Council and the Swachh Bharat Mission. City Livelihoods Centers (CLCs) which are supposed to be established in all cities under DAY-NULM are being revitalized, with a renewed focus on creating a robust database of freelance service providers, making their services available through mobile apps etc. Many CLCs are collecting and training, informal workers and facilitating their formal employment through municipal contracts.

TID BITS:

CLS in Nahan, Himachal Pradesh for example, has trained informal sweepers from the Balmiki Basti. They have now been provided formal contracts by the Nahan Municipal Corporation, with detailed Terms of Reference and safety equipment’s.

Improving Women’s Participation in the Urban Workforce.

• The Female Labour Force Participation Rate (FLFPR) in India could rise by 21 percentage points (78 per cent) if all women who expressed a desire to work were enabled to do so.
• DAY-NULM directly address this gap, by mobilizing women into Self Help Groups.

The Way Forward

• Various missions of the Ministry viz PMAY-U, SBM-U, AMRUT, HRIDAY and SCM are making significant investments in the urban areas.
• Urban mobility is also improving through mass rapid transport projects.
• The creation and maintenance of this growing urban infrastructure is generating tremendous employment opportunities; thus, complementing the efforts of DAY-NULM.
• MoHUA is encouraging certification of workers in the construction sector, with the twin objective of improving livelihoods and the quality of public works.
• As the standard of living improves with rise in disposable income of urban Indians owing to sustained growth of the India economy, new sectors are emerging which have high employment potential. These include e-commerce delivery, on demand taxi services, fitness and wellness, elderly care, child, home-based services etc. DAY-NULM is encouraging courses relevant to these emerging sectors and exploring partnerships with private sector employers, in order to improve the income potential of candidates skill trained under the Mission.
• In Order to tap the global demand for skilled Human Resources, NSDC has launched Pravasi Kaushal Vikas Yojana and India International Skills Centers and being established.
• A detailed skill gap study on global skill demands is also being conducted by NSDC so that India’s positive demographic dividend can be suitable harnessed to fill the global gap in demand and supply of skills.