79% employers willing to increase apprentice intake, says report

They regard apprentices help business growth, have skills suited for the market

As many as 79 per cent of corporate employers foresee increasing their apprentice intake in the fourth quarter of FY23, said a report on Monday.

About 37 per cent of them are willing to increase intake as they regard apprentices to have real-time skilled talent. At least 23 per cent feel that apprentices help business growth, according to the report by Team Lease Services.

The report covered 14 cities and 24 industries, surveying 597 employers. The net apprenticeship outlook (NAO), the number of employers willing to increase apprentice intake minus those willing to decrease, stands at 66 per cent, a 3 per cent dip compared to the second half of calendar year 2022.

According to the report, 12 industries reported an increase in NAO. The NAO is highest for large companies (from 69 per cent in July 2022 vs. 65 per cent in December) and decreases for small businesses (64 per cent vs. 71 per cent).

India’s major cities reported an increase in apprenticeship. Hyderabad has the highest NAO (78 per cent), followed by Delhi (74 per cent) and Bangalore (68 per cent). As many as 83 per cent employers in Hyderabad, 82 per cent in Delhi, 80 per cent in Bengaluru and 81 per cent in Chennai are willing to increase apprentice intake. Kolkata had the lowest NAO (42 per cent) and there only 68 per cent of employers expect an increase, said the Apprenticeship Outlook Report.

“Employers are realizing that apprenticeships with a degree linkage have better skill competencies. Moreover, even other stakeholders are taking the initiative to boost apprentice adoption in India. Increased advocacy from the government has helped improve awareness. Additionally, the budget announced stipend support for 47 lakh youth over the next three years, on-the-job training through PMKVY, and the rollout of Direct Benefit Transfer under a pan-India National Apprenticeship Promotion Scheme. The subsidy support is a great fillip for the apprenticeship landscape in India,” said Sumit Kumar, chief business Officer-manufacturing, Team Lease Degree Apprenticeship.