Apprenticeship Outlook Report H1 2021

Forecast for CY : Jan 2021 – Jun 2021
Apprenticeship Outlook Report

6 - m o n t h f o r e c a s t s f o r a p p r e n ti c e h i r i n g b a s e d o n e m p l o y e r s e n ti m e n t
1
About
The Apprenticeship Outlook
Sectors covered Cities Covered Industry classification

◦ Agriculture & Agrochemicals ◦ Ahmedabad • Manufacturing
◦ Automobile & Ancillaries ◦
◦ Bengaluru Manufacturing & Engineering
◦ Beauty & Wellness ◦ Automobile & Ancillaries
◦ Chandigarh
◦ BFSI ◦ FMCG & D
◦ Construction & Real Estate ◦ Chennai ◦ Health & Pharmaceuticals
◦ FMCG & D ◦ Delhi ◦ Apparel & Textiles
◦ Health & Pharmaceuticals ◦ Hyderabad ◦ Electrical & Electronics
◦ IT / ITeS ◦ Kochi
• Services
◦ Logistics ◦ Kolkata ◦ Beauty & Wellness
◦ Retail ◦ BFSI
◦ Lucknow
◦ Telecommunication ◦ Construction & Real Estate
◦ Travel & Hospitality
◦ Mumbai ◦ IT/ITeS
◦ Media and Entertainment ◦ Indore ◦ Logistics
◦ Apparel & Textiles ◦ Nagpur ◦ Retail
◦ Manufacturing & Engineering ◦ Coimbatore ◦ Telecom
◦ Ecommerce ◦ Travel & Hospitality
◦ Pune ◦
◦ Electrical & Electronics Media and Entertainment
◦ Ecommerce
◦ Education
◦ Education
• Agriculture
◦ Agriculture & Agrochemicals
2
Methodology
Net Apprenticeship Outlook (NAO)  (A) minus (B)

(computed based on responses given by 352 respondents who anticipate hiring in the current HY Jan–Jun, 2021: Total responses: 600)
◦ (A) Increase: The proportion of employers indicating that they will likely increase the hiring
of apprentices during the current HY (Jan 2021 – Jun 2021) as compared to the previous
HY (Jul 2020 – Dec 2020)
◦ (B) Decrease: The proportion of employers indicating that they will likely decrease the
hiring of apprentices during current HY (Jan 2021 – Jun 2021) as compared to the previous
HY (Jul 2020 – Dec 2020)
◦ (C) No Change: The proportion of employers indicating that they will likely have no change
in the hiring of apprentices during current HY HY (Jan 2021 – Jun 2021) as compared to the
previous HY (Jul 2020 – Dec 2020)
All other findings are reported as percentages of total respondents at the respective levels of analysis.
Key Findings
Employers Hiring Sentiment for the HY [Jan 2021 – Jun 2021] – Net Apprenticeship Outlook (NAO)
Net Apprenticeship Outlook NAO for the current HY (Jan-Jun 2021) has increased to 41% (an increase from 33% from the previous HY (Jul-Dec 2020)). 12% more employers
(58%) foresee an increase in hiring apprentices in the current HY when compared to the previous HY (46%)
Top 3 reasons for employers to increase hiring of apprentices:

◦ To handle frequent demand surges due to the pandemic: 31%
◦ To optimize the manpower cost of work at basic levels: 23%
◦ To offset the workforce scarcity due to the COVID pandemic: 15%
Top 3 reasons for employers to decrease in hiring of apprentices:

◦ As a step towards workforce downsizing specifically due to COVID pandemic: 43%
◦ As part of regular workforce restructuring: 20%
◦ No requirement of additional apprentices: 16%
Sector, city and business category wise NAO highlights.

◦ Manufacturing(55%), Automobiles & Ancillaries(51%) and Retail (48%): have a higher NAO when compared to other sectors.
◦ Sectors which were severely impacted by the Pandemic in the last HY are seeing significant growth in the current HY - Travel & Hospitality (growth of 34%), Beauty &
Wellness (growth of 31%).
◦ Similarly, Small businesses which were heavily hit by the pandemic are likely to witness a growth of 23% in hiring apprentices (Growth of 8% in current HY from -15% in
previous HY)
◦ Chennai emerges as the most apprentice friendly city (NAO of 57%) and Coimbatore as the least (NAO of 21%).
Key areas of hiring during Jan 2021 – Jun 2021

Employers preferred category of apprentices and job roles to hire.
◦ Trade – Outlook: 55% (Preferred Job role - Fitter / Welder – Outlook: 25% / Average number of hires: 37)
◦ Technician – Outlook: 43% (Preferred Job role - Automobile/Mechanical Technician –Outlook: 28% / Average number of hires: 34)
◦ Graduate – Outlook: 28% (Preferred Job role - Production Engineer – Outlook: 31% / Average number of hires: 31)
Top functional domain(s) where the apprentices are likely to be hired the most in the next 6 months:
◦ Production & Engineering – Outlook: 42%, Sales – Outlook: 28%.
4
Key Findings
Insights on current apprentice hiring:
Employer perception of productivity levels of apprentices engaged:
◦ Very productive: 41%, Fairly productive:45%, Unproductive:14%
Preferred Skills:
◦ Technical Knowledge – 32%, Communication skills – 22%, Willingness to learn – 15%
Gender preferences of employers:
◦ Employers continue to prefer male candidates (41%) over Female candidates (28%). The rest of the employers (31%) have no gender preferences.
◦ From city perspectives, Chennai (44%) and Hyderabad (41%) emerge as leaders with no gender preference.
Ease of hiring apprentices:
◦ Only 34% of all respondents (25% lesser than previous HY numbers (59%) face challenges in hiring apprentices)
◦ 27% of those respondents call out compensation related issues as the topmost hiring challenge .
5
More Findings
Stipend ranges paid to apprentices engaged (per month): [Percentage of total at the respective category level]:
◦ Trade Apprentices: 41% of respondents likely to pay between INR Rs.10,000 – Rs.12,000
◦ Graduate Apprentices: 52% of respondents likely to pay between INR Rs.12,000 – Rs.18,000
◦ Technician Apprentices: 47% of respondents likely to pay between INR Rs.12,000 – Rs.15000
◦ Technician (Voc): 41% of respondents likely to pay between INR Rs.10,000 – Rs.15,000
◦ Optional Trade: 49% of respondents likely to pay between INR Rs.10,000 – Rs.15,000
NAO Key highlights - YoY comparisons Between (Jan – Jun) 2020 and (Jan – Jun) 2021
◦ NAO levels - (Jan – Jun) 2020 : 69% -> (Jul – Dec) 2020 : 33% -> (Jan – Jun) 2021 : 41%
◦ The preference for Female candidates has increased by 10% YoY. This preference is more pronounced in the Agriculture sector when preference for female candidates has
doubled to 40% YoY.
◦ More employers (Increase from 41% to 66%) find the apprentice hiring process to be easier.
◦ Compensation related issues (27%) is the key hiring challenge faced by employers in the current HY. A year back, it was ‘Lack of awareness among job seekers’ ( 32%).
Overview of distribution of apprentices across states, organization types and Industries.

◦ Gujarat, Maharashtra, Haryana and Uttar Pradesh are the top 4 states engaging more than 60% of apprentices.
◦ Across different organization types, Large organizations (55%) employ more than half the apprentices. The same holds true for the private sector (employ 55% of all apprentices).
◦ By industry, Manufacturing engages the highest proportion of apprentices (53.2%)
Cost benefit Analysis of Apprenticeship model

◦ While enterprises benefit from increased productivity at lesser cost, apprentices benefit from on the job training model with pay. They also enjoy a chance to learn and be
employed as a organized skilled worker.
◦ In the case of Government, it is the accrual of social and economic benefits over long term. Increase in tax contributions and reduction in unemployment are some key benefits
that can be highlighted.
6
Net Apprenticeship Outlook (NAO)
Employers Hiring Sentiment
(Jan 2021– Jun 2021)
7
Overview [forecast for HY : Jan 2021 – Jun 2021]
Net Apprenticeship Outlook (HY Jan -Jun2021)
70%
60% 58%
50%
46% The Net Apprenticeship Outlook for the current HY (41%)
41% 41% has increased by 8% from the previous HY (33%). This
40%
growth can be attributed mainly to the increase in
% of respondents
33%
employers (58%) foreseeing a more robust apprentice
30%
25% hiring in the current HY. The positive outlook on hiring
indicates that the apprenticeship market is swiftly
20% 17%
13% recovering from the economic concerns caused by COVID
10%
crisis.
0%
Increase Decrease No Change Net
Apprenticeship
Outlook
Hiring sentiments
Jan– Jun, 2021 Jul– Dec, 2020
Source: Valuvox Survey of Apprenticeship Hiring Trends ,Dec 2020 – Jan 2021| Total number of respondents: 600 | The above computation is based on responses given by 352 respondents who anticipate hiring in the current HY (Jan-Jun,2021)
Reasons for the increase and decrease in the hiring during Jan 2021 – Jun 2021
23% 20%
To optimize the
As part of regular
manpower cost of work
workforce restructuring
at basic levels
31% 15% 43%

Capacity building to As a step towards
16%
To offset the workforce
handle frequent demand workforce downsizing No requirement of
scarcity due to the
surges due to the specifically due to additional apprentices
COVID pandemic
pandemic COVID pandemic
Top Reasons Top Reasons

for the for the
increase in decrease in
the hiring the hiring
The pandemic is a driver for increase in apprentice hiring (on part of 31% of employers who cite demand surges) as
well as decrease (on part of 43% employers who are downsizing their workforce due to pandemic).
9
NAO Highlights [forecast for HY : Jan 2021 – Jun 2021] – Top and Bottom Sectors and Cities
Manufacturing & Engineering Education Chennai Coimbatore

Jan-Jun,2021 - 55% Jan-Jun,2021 - 14% Jan-Jun,2021 - 57% Jan-Jun,2021 - 21%
Jul-Dec, 2020 - 40% Jul-Dec,2020 - 7% Jul-Dec,2020 - 38% Jul-Dec,2020 - 18%
Automobiles & Ancillaries Media & Entertainment Ahmedabad Nagpur
Jan-Jun,2021 - 20% Jan-Jun,2021 - 54% Jan-Jun,2021 - 26%
Top Sectors
Jan-Jun,2021 - 51%
Jul-Dec,2020 - 11%
Top Cities
Jul-Dec,2020 - 36% Jul-Dec,2020 - 15% Jul-Dec,2020 - 42%
Delhi Jan- Kochi
Bottom Sectors
Retail Travel & Hospitality
Bottom Cities
Jan-Jun,2021 - 24% Jun,2021 - 53% Jan-Jun,2021 - 27%
Jan-Jun,2021 - 48%
Jul-Dec,2020 – [-10%] Jul-Dec,2020 - 37% Jul- Dec,2020 - 20%
Jul-Dec,2020 - 38%
The NAO has seen a significant increase (between 5% and 34% by sector) in the current HY (Jan – Jun 2021) compared
with the previous HY (Jul-Dec 2020). The Travel & Hospitality sector, where NAO suffered last HY, sees a substantial
growth (34%) in the current half year. Chennai has recorded the highest NAO (57%) among the cities, and Coimbatore
has recorded the lowest NAO (21%).
NAO Highlights [forecast for HY : Jan 2021 – Jun 2021] – Top and Bottom Categories and Business
Size
Top apprentice categories Bottom apprentice categories Top business categories Bottom business categories
• Trade Apprentice • Technician (Voc) • Large • Small
• Jan-Jun,2021 - 55% • Jan-Jun,2021 - 16% • Jan-Jun,2021 - 50% • Jan-Jun,2021 - 8%
• Jul-Dec,2020 - 32% • Jul-Dec,2020 - 22% • Jul-Dec,2020 - 38% • Jul-Dec,2020 – [-15%]
• Technician • Optional Trade

• Jan-Jun,2021 - 43% • Jan-Jun,2021 - 17% • Medium
• Jul-Dec,2020 - 22% • Jul-Dec,2020 - 15% • Jan-Jun, 2021 - 37%
• Jul-Dec,2020 - 30%
• Graduate
• Jan-Jun,2021 - 28%
• Jul-Dec,2020 - 16%
The Net Apprenticeship Outlook sees appreciable increase across Small, Medium and Large businesses for the Jan – Jun
2021 HY as compared to the previous HY. Small businesses, among business categories, and Trade apprentices, among
apprentice categories, witness the biggest jump in outlook (a net increase of 23% on both counts) from the previous HY.
NAO Highlights [forecast for HY : Jan 2021 – Jun 2021] – Large vs Small & Medium
Enterprises
Net Apprenticeship Outlook - Large vs. SME Net Apprenticeship Outlook - by business size and Industry (HY Jan-Jun,
2021)
70%
65% 80%
70%
70%
60% 62% 61% 59% 61%
60% 57%
53%
% of respondents
50% 48% 46%
50% 42%43% 43%
50% 38%
47% 40%
45%
30% 28% 27%
24% 24%
21% 21%
% of respondents
40% 38% 38% 18% 19%

20% 14% 13% 15%
32% 32% 32% 9%
10%
30% 0%
23% Industry/Business Size
20%
20%
15% 15% 15% Increase No Change Decrease NAO
10% 9% The Net Apprenticeship Outlook for large businesses (50%) is

higher than that of SMEs (32%) for the current HY. The
0%
Manufacturing industry has the highest NAO across large (61%)
Period/Business Size
businesses and SMEs (43%). In case of the second highest NAO,
it is the Agriculture industry (48%) for large businesses and
Increase No Change Decrease NAO Services industry (38%) for SMEs.
Top 3 Job profiles [forecast for HY: Jan 2021– Jun 2021] – by Industry
Manufacturing Agriculture Services
•Fitter/Welder- 31% •Sales Executive - 25% • Customer Support Executive- 28%

NAO  •Electrician/Wireman- 24% •Fitter - 21% • Sales Executive - 22%
•Mechanic - 20% •Helper - 18% • Housekeeping- 17%
Fitter/Welder (NAO: 31%) from Manufacturing Industry, Sales Executive (NAO: 25%) from Agriculture
Industry and Customer Support executive (NAO: 28%) from Services Industry are the most sought-
after Job profiles in the current HY (Jan – Jun 2021).
Net Apprenticeship Outlook (HY Jan 2021–Jun 2021) - Sectors
A Comparison with HY Jul 2020 – Dec 2020
Net
Apprenticeship
HY’s Increase No change Decrease Outlook
Manufacturing & Engineering
Jan– Jun, 2021 73% 19% 18% 55%
Jul– Dec, 2020 54% 32% 14% 40%
Automobile & Ancillaries
Jan– Jun, 2021 70% 11% 19% 51%
Jul– Dec, 2020 58% 38% 22% 36%
Retail
Jan– Jun, 2021 61% 26% 13% 48%
Jul– Dec, 2020 54% 30% 16% 38%
FMCG & D The top 3 sectors with highest hiring prospects in the current
Leaders
Jan– Jun, 2021 62% 25% 16% 46%

Jul– Dec, 2020 48% 37% 15% 33%
HY, are Manufacturing & Engineering (NAO: 55%),
BFSI Automobile & Ancillaries (NAO: 51%) and Retail (NAO: 48%).
Jan– Jun, 2021 56% 32% 12% 44%
Jul– Dec, 2020 38% 53% 9% 29%
Electrical & Electronics
Jan– Jun, 2021 53% 38% 9% 44%
Jul– Dec, 2020 42% 37% 21% 21%
Health & Pharmaceuticals
Jan– Jun, 2021 60% 28% 17% 43%
Jul– Dec, 2020 57% 28% 15% 42%
Agriculture & Agrochemicals
Jan– Jun, 2021 56% 30% 14% 42%
Jul– Dec, 2020 44% 46% 10% 34%
IT / ITeS
Jan– Jun, 2021 53% 33% 12% 41%
Jul– Dec, 2020 42% 41% 17% 25%
14
Net Apprenticeship Outlook (HY Jan 2021–Jun 2021) - Sectors
Net
Apprenticeship
Logistics
Jan– Jun, 2021 59% 22% 19% 40%
Jul– Dec, 2020 45% 38% 17% 28%
Construction & Real Estate
Jan– Jun, 2021 52% 33% 15% 37%
Jul– Dec, 2020 41% 48% 10% 31%
ECommerce Ecommerce is the only sector with lower NAO in the
Jan– Jun, 2021 52% 32% 16% 36%
Jul– Dec, 2020 49% 40% 11% 38% current HY (36%) when compared to the previous HY
Apparel & Textiles (38%). This can be attributed to the higher number of
Laggards
Jan– Jun, 2021 50% 35% 15% 35%

Jul– Dec, 2020 37% 50% 13% 24%
employers (16%) intending to reduce hiring of
Telecommunication apprentices in the current six months.
Jan– Jun, 2021 52% 30% 18% 34% Green shoots are evident in Beauty & Wellness and Travel
Jul– Dec, 2020 44% 42% 14% 30%
Beauty & Wellness & Hospitality sectors where the NAO has changed from a
Jan– Jun, 2021 41% 44% 15% 26% negative outlook from the previous HY to significantly
Jul– Dec, 2020 21% 53% 26% -5%
Travel & Hospitality
positive numbers in the current HY.
Jan– Jun, 2021 38% 48% 14% 24%
Jul– Dec, 2020 24% 42% 34% -10%
Media & Entertainment
Jan– Jun, 2021 41% 38% 21% 20%
Jul– Dec, 2020 29% 57% 14% 15%
Education
Jan– Jun, 2021 44% 26% 30% 14%
Jul– Dec, 2020 21% 65% 14% 7%
15
Net Apprenticeship Outlook (HY Jan 2021–Jun 2021) - Metro
Net
Apprenticeship
Chennai
Jan– Jun, 2021 70% 17% 13% 57%
Jul– Dec, 2020 51% 36% 13% 38%
Delhi
Jan– Jun, 2021 66% 22% 12% 54%
Jul– Dec, 2020 48% 41% 11% 37%
Bangalore
Employers in all metro cities anticipate an increase in
Jan– Jun, 2021 63% 25% 12% 51%
Jul– Dec, 2020 49% 36% 15% 34% their apprentice hiring numbers for the current HY.
Metro
Mumbai Chennai has the highest NAO (57%) among the metro
Jan– Jun, 2021 64% 22% 14% 50% cities. Kolkata on the other hand, continues to have the
Jul– Dec, 2020 53% 33% 14% 39% lowest NAO (36%) even though it has a significant growth
Hyderabad of 19% (from the 17% NAO for the previous HY).
Jan– Jun, 2021 62% 23% 15% 47%
Jul– Dec, 2020 52% 36% 12% 40%
Kolkata
Jan– Jun, 2021 49% 38% 13% 36%
Jul– Dec, 2020 33% 51% 16% 17%
16
Net Apprenticeship Outlook (HY Jan 2021–Jun 2021) – Non Metro
Net
Apprenticeship
Ahmedabad
Jan– Jun, 2021 68% 18% 14% 54%
Jul– Dec, 2020 56% 30% 14% 42%
Chandigarh
Jan– Jun, 2021 63% 21% 16% 47%
Jul– Dec, 2020 36% 49% 15% 21%
Pune
Among non metros, Ahmedabad continues to top the
Non Metro
Jan– Jun, 2021 60% 20% 20% 40%

Jul– Dec, 2020 38% 45% 17% 21% NAO chart (54%) for the current HY. Nagpur graduates to
Lucknow the second spot with a 26% NAO from 11% for the
Jan– Jun, 2021 56% 27% 17% 39%
previous HY. Coimbatore is at the bottom of the chart
Jul– Dec, 2020 28% 59% 13% 15%
Kochi
with a NAO of 21%.
Jan– Jun, 2021 48% 38% 14% 34%
Jul– Dec, 2020 36% 48% 16% 20%
Indore
Jan– Jun, 2021 45% 40% 15% 30%
Jul– Dec, 2020 38% 39% 23% 15%
Nagpur
Jan– Jun, 2021 48% 30% 22% 26%
Jul– Dec, 2020 31% 49% 20% 11%
Coimbatore
Jan– Jun, 2021 41% 39% 20% 21%
Jul– Dec, 2020 36% 46% 18% 18%
17
Net Apprenticeship Outlook (HY Jan 2021–Jun 2021) – Business Size
Net
Apprenticeship
Business Size
Large
Jan– Jun, 2021 65% 20% 15% 50%
Jul– Dec, 2020 53% 32% 15% 38%
Medium
Jan– Jun, 2021 56% 25% 19% 37% Small businesses anticipated a strong hiring momentum
Jul– Dec, 2020 48% 34% 18% 30%
Small with a significant growth of 23% compared to the
Jan– Jun, 2021 35% 38% 27% 8% previous HY (Jul-Dec,2020). Large business employers
Jul– Dec, 2020 15% 55% 30% -15% report the strongest hiring outlook with a NAO of 50%, a
growth by 12% compared to the hiring outlook of
previous HY. Although small employers reported the
lowest NAO of 8% this HY, their hiring intentions have
grown 23% compared to the previous HY.
18
Net Apprenticeship Outlook (HY Jan 2021–Jun 2021) – Category of apprentices
Net
Apprenticeship
Category of apprentices
Trade
Jan– Jun, 2021 65% 25% 10% 55%
Jul– Dec, 2020 58% 24% 18% 40%
Technician
Jan– Jun, 2021 56% 31% 13% 43%
Jul– Dec, 2020 43% 36% 21% 22%
Graduate
Jan– Jun, 2021 45% 38% 17% 28% Trade (55%) and Technician (43%) category apprentices
Jul– Dec, 2020 35% 46% 19% 16%
continue to witness highest NAO during the current HY.
Optional Trade
Jan– Jun, 2021 41% 35% 24% 17% Hiring intent for Technician(Voc) and Optional Trade has
Jul– Dec, 2020 36% 43% 21% 15% seen minimal change (Increase by 1 to 2%) this half year
Technician(Voc) when compared to the previous half year.
Jan– Jun, 2021 35% 46% 19% 16%
Jul– Dec, 2020 31% 53% 16% 15%
19
Apprenticeship Outlook - Key areas of hiring
Employer’s Hiring Sentiment
(Jan 2021 – Jun 2021)
Top Categories [forecast for HY-1: Jan 2021 – Jun 2021] Y-O-Y Comparison
Graduate Apprentices Trade Apprentices

11% drop from corresponding period last year Jan- 4% drop from corresponding period last
Jun, 2020 year Jan-Jun, 2020
Top Sectors: Manufacturing & Engineering, Top Sectors: Manufacturing & Engineering,
Automobile & Ancillaries, IT/ITeS, 21% Automobile & Ancillaries, Healthcare &
Pharma, Electrical & Electronics
53% 30%
Technician (Voc) Apprentices Technician Apprentices
4% drop from corresponding period last year Jan- 14% 3% growth from corresponding period last
Jun, 2020 year Jan-Jun, 2020
Top Sectors: Retail, Agriculture & Agrochemicals, Top Sectors: Manufacturing & Engineering,
Ecommerce Automobile & Ancillaries, FMCG/D
Despite a 4% drop in YoY outlook, Trade apprentices (55%) continue to be employers most preferred category of
apprentices in the current HY (Jan – Jun, 2021) as well. Technician apprentices (30%) are the second most
preferred category and have grown 3% in outlook, YoY.
Top Job profiles [forecast for HY-1: Jan 2021 – Jun 2021]
Fitter/Welder Production Automobile Computer Maintenance

Engineer /Mechanical Technician Technician
25% Painter
31% Technician 29%
Mechanic Delivery Executives
Gr Mechanical Tec 28% Sales & Store Keepers
Engineer Electrical/Electro Marketing Health Advisors
21% ad hni Tec
31% nics Technician Executive
Tra Electrician/Wirema uat cia hni Op
n Sales & 25% 25%
de e Marketing n IT/Computer cia tion
Electrician/Wirem
16%
pro Housekeeping Pro Executive Pro Technician 21% n an al
file file 25% file (Vo 14% Tra
s 13% s s c) des
Fitter/Welder (NAO: 25%) under Trade category, Production Engineer (NAO: 31%) under Graduate category,
Automobile/Mechanical technician (NAO: 28%) under Technician category and Computer technician (NAO: 29%)
under Technician Vocational category are the most sought after job profiles for hiring during the current HY.
Estimated numbers likely to be hired during Jan 2021 – Jun 2021
Average number of apprentices by category
Estimated number Estimated number

Trade Profiles of hiring Estimated number
Graduate Profiles of hiring Technician Profiles of hiring
Fitter / Welder 37
Mechanic 33 Production Engineer 31 Automobile /Mechanical Technician 34
Electrician/Wireman 29 Mechanical Engineer 22
Electrical/Electronics Technician 30
Helper 29
Sales & Marketing Executive 20
Housekeeping 22 IT / Computer Technician 25
Machinist 19 IT/Computer Engineer 17
Sales Executive 21
Computer Operator and Civil Technician 14
Programming Assistant 12 Electrical & Electronics Engineer 12
Steward 11 HR Executive 10 Chemical Technician 12
Plumber 10
Draughtsman 10
Carpenter 9
Estimated number of
Technician (Voc) Profiles hiring
Sales & Marketing Executive 20
Computer / IT Technician 18 Across the four categories of apprentices, roles associated with Electrical,
Electrician / Wireman 11 Mechanical and Automobile domains are the most sought after.
Mechanic / Automobile Technician 10
Production Technician 7 Overall, Trade and Technician apprentices are the most sought after among
Lab Technician 6 apprentice categories.
Office Secretaryship/Stenography 5
Fashion Designer 3
Estimated numbers likely to be hired during Jul 2020 – Dec 2020
Average number of apprentices by Business Size
Estimated number of hires

Business Size (Average per respondents)
The average number of apprentices likely to be hired

Large 364 for the current HY is expected to be much higher for
Large (364) when compared to Small & Medium
Small & Medium (SME) 186 enterprises (186).
Functional Area [forecast for HY-1: Jan 2021 – Jun 2021] Y-O-Y Comparison
Hiring under various functional areas - by Industry -

HY Jan –Jun, 2021
Apprentice hiring – by functional area 60%
50% 46% 51%
45% 42% 50% Sales
40%
Marketing
35%
28% 40% Information
% of respondents
30% 35%
31% Technology
25%
19% 30% 28%
20% 17% 17% 25% Production &
15%
13% 13% Engineering
% of respondents
15% 11% 20%19%

10% 8% 20% 17%
6% 16% 15% HR
5% 14% 14%
10% 11% Administration &
0% 10%
s 5% Office Services
i es HR gy tin
g
rin
g le
rv lo e Sa 2% 1% 2%
se no ke ne
ce ch ar gi 0%
Te M n Agriculture Manufacturing Services
Offi on &
E
& ati on
ti on rm cti
Industry
ra fo u
i st In od
i n Pr
m
Ad
Functional areas
Jan-Jun, 2021 Jan-Jun,2020
Production & Engineering (42% of all employers) and Sales (28%) witness higher outlook levels for the current HY (Jan – Jun,
2021). Manufacturing (51%) and Agriculture (35%) industries are likely to hire apprentices mainly for their Production &
Engineering functions. The Services industry (28%) is likely to hire for the sales function.
Apprentice hiring
More Insights
Top Skills
Requirements
Skill Requirement – by Industry
40%
35%
35% 33%
30%
30%
% of respondents
25% 23%
21%
19%
20% 17% 16%
15% 14%
15% 13%
11% 10%
9% 10%
10%
5% 5% 5% 6%
5% 1% 2%
0%
Agriculture Manufacturing Services
Skills
Technical knowledge Willingness to learn Physical fitness Personality

Communication skills Interest in the trade English skills
Technical knowledge (32%), Communication skills (22%) and Willingness to learn (15%) are the top 3 skills employers expect
apprentices to possess.
Technical Knowledge is a key skill requirement for employers of Agriculture (33%) and Manufacturing (35%) industries. In case of
Services Industry, it is Communication skills (23%).
Source: Valuvox Survey of Apprenticeship Hiring Trends ,Dec 2020 – Jan 2021| Total number of respondents: 600 | The above computation is based on responses given by 480 respondents who have apprenticeship program implemented in their organization.
Top Stipend Pay-outs
By Category (Y-O-Y Comparison)
All figures are in Rs/month.
Trade Apprentices
●
Jan-Jun,2021: Rs.10,000 - Rs.12,000 41%
●
Jan-Jun, 2020: Rs 10,000 - Rs 15,000 33%
Graduate Apprentices
Jan-Jun,2021: Rs.12,000 - Rs.18,000 52%
● Jan-Jun, 2020: Rs 12,000 - Rs 15,000 48%
Most employers continued to pay relatively
higher stipend (in the Rs.10,000-Rs.15,000
Technician Apprentices range). While Graduate apprentices are not
Jan-Jun,2021: Rs.12,000 - Rs.15,000 47% as much in demand as Trade apprentices,
● Jan-Jun, 2020: Rs 10,000 - Rs 15,000 57%
they draw a relatively higher stipend due to
the higher educational qualification.
Technician (Voc) Apprentices
Jan-Jun,2021: Rs.10,000 - Rs.15,000 41%
● Jan-Jun, 2020: Rs 10,000 - Rs 15,000 53%
Optional Trade
Jan-Jun,2021: Rs.10,000 - Rs.15,000 49%
● Jan-Jun, 2020: Rs 8000 - Rs 10,000 51%
Gender Preference in Apprentice Hiring
Overall and by Industry (Y-O-Y Comparison) Gender Preference - by Industry
70%
58%
60% 51%
% of respondents
47% 48%
50%
Gender Preference (Y-O-Y Comparison) 40%
40%
33% 33% 36%
31% 29% 28%27% 31% 31%
30% 21% 21%
20%
20% 15%
10%
0%
Gender/Industry
28%
Jan- Male
Jun,2021, Jan-
Female
No such preference
[PERCENT Jun,2021, Jan-Jun,2021 Jan-Jun,2020
AGE] [PERCENT
AGE]
54% Overall, majority of employers continue to prefer male
Jan-
candidates (41%) over HY Jan-Jun 2021. However, this
Jun,2021, proportion has declined by 13% from last year.
18% [PERCENT
AGE]
Manufacturing Industry (58%) continues to be a male
dominant Industry. Preference for female candidates has
doubled YoY in the Agriculture Industry with 40% of
employers displaying a preference for female candidates in
Jan –Jun 2021 as compared to 20% in Jan – Jun 2020.
Gender Preference in Apprentice Hiring
Across cities - Overall
Gender Preference - by city -HY Jan-Jun,2021

70%
61%
60% 59% 58%
55%
52% 53% 52%
50%
50% 48%
44%
40% 41% 40%
Male candidates are preferred in cities
40% 37%
35% 34% 34%
37%
35% 35% 36% like Lucknow (61%), Chandigarh (59%),
% of respondents
32% 33% 32% 33% 33%
30% 29%
31%
28% 29% Pune (58%), and Indore (55%).
22%
25% Bangalore (37%), Mumbai and
20%
16% 17%
19% Kolkata(35%) are more female centric.
15% 15% 15%
10%
14%
10%
However, Chennai (44%) and
10%
6% Hyderabad (41%) emerge as leaders
0%
with no gender preference.
i e hi i i r
ad or
e
ar
h
na or l ba
d re ch ta ow ba pu ne
ab l g n t De ra do Ko lka kn g Pu
e d nga di Ch
e ba e In Ko c um N a
a an im d Lu M
Ah
m B Ch Co Hy
City
Male Female No such preference
Employer Perception of Apprentice Productivity
Y-O-Y Comparison
Employer Perception of apprentice productivity - by Industry
70%
60% 59%
60%
54%
52%
50% 46% 47%
% of respondents
42% 42%
40% 40%
40% 36% Jan-Jun,2021
33%
Jan-Jun, 2020
30%
20%
12% 11% 10%
10% 8% 8%
0%
0%
Productivity/Industry
Employer's Perception on apprentice productivity - by business size

60%
50% 51%
50% 48%
45% 45% 44% 43%
Employee perception of Apprentice productivity (“very productive” 41% 41% 40%
% of respondents
40% 35%
and “fairly productive”) has come down slightly YoY (by 6%) from 30%
32%
92% in Jan-Jun 2020 to 86% in Jan –Jun 2021. 20%

22%
20% 15%
14%
9%
10%
While majority of large businesses (45%) perceive their apprentices 5%
0%
to be “very productive”, most of the medium (48%) and small (43%) Business Size
businesses consider their apprentices to be only “fairly productive”.
Very productive Fairly productive Unproductive
Challenges in hiring apprentices HY Jan-Jun,2021
Y-O-Y Comparison Challenges faced while hiring apprentices
35% 32%
30% 27% 25%
25% 20% 21%
Was the hiring process convenient? 20% 17% 16% 14%
18%
15% 10%
10%
5%
0%
ed s es rs s
% of respondents
at ip
tic ke ce
Yes l sh e ur
re c e ren se s o
No 41% n
en
ti p b re
a tio pr ap t jo
in
g
34% ns p re gs li z
pe
a hi on i
er to ob
No Co
m
t ov rm sa
m M
59% en tfo es
Yes m la en
oy /p a r
66% pl l w
Jan-Jun,2020 m ne fa
e re ha
n
ko
Jan-Jun,2021 ef rc La
c
s pr pe
er pro
e ek fo
r
bs ck
Jo La Challenges
Jan-Jun,2021 Jan-Jun,2020
More employers perceive the hiring process to be easier in the current HY Jan – Jun, 2021 (66%) than in Jan – Jun 2020 (41%).
On the same note, “Lack of awareness among job seekers” which was the topmost hiring challenge (32%) in Jan – Jun, 2020 has
turned into the least challenging aspect in Jan – Jun, 2021 faced only by 14% employers. Instead, employers highlight
compensation related issues (27%) as their key challenge currently.
Current Scenario of
Apprenticeship Program in India
33
Hiring Preference of Employers
Percentage Hires By Employment Type
18% 4%
Overall, employers prefer permanent employment over

apprenticeship. Only 4% of employers across sectors and cities have
preference for apprentices. However, the impact of recent
amendments and reforms is beginning to have a positive effect. The
number of apprenticeship contracts crossed 3 lakhs in 2019-20 up by
50% from 2018-19.
78%
Permanent Contractual Apprentices
Source: India Skills Report, 2020, Wheelbox
34
Apprentice Engagement
Implementation of apprenticeship programs by employers
Will employers hire in the next 6 months? Reasons for hiring apprentices
35%
32%
30%
30%
21%
25%
20%
% of respondents
15%
15% 13%
10%
10%
59% 5%
20%
0%
Creating talent Cost effective It’s a law which Catering to Other Reasons
pool deployment of needs to be expansion of
work force followed buisness
Reasons
Yes No, we do not have apprenticeship program No, but we have apprenticeship program
59% of all employers who intend to hire apprentices in the current HY (Jan-Jun,2021), highlight creation of talent pool (32%) and having a
cost-effective workforce (30%) as their apprentice hiring motivators. Of the 41% of employers who do not intend to hire apprentices, nearly
half do not have any apprenticeship programs at all in their organizations.
Source: Valuvox Survey of Apprenticeship Hiring Trends ,Dec 2020 -Jan 2021 | Total number of respondents: 600 35
Why Companies are reluctant to hire apprentices?
25% Lack of awareness about

apprenticeship model, regulatory
Employers do not foresee policies and Government offerings
value add to their 20%
organization
Financial Constriants,
15% therefore less likely to ‘risk’
investing in apprenticeships
Lack of clarity on how to go
about starting and design an 15%
apprenticeship programme
Lack of staff to mentor, coach

13% and train an apprentice
Lack of training infrastructure

and a dedicated HR Team 12%
Top reasons discouraging employers from hiring apprentices are lack of awareness about apprenticeship model and its associated policies and offerings
(25%) and no clear visibility of value addition to the organization through apprenticeship program (20%).
36
Source: Valuvox Survey of Apprenticeship Hiring Trends ,Dec 2020 -Jan 2021 | Total number of respondents: 600
State wise Distribution of apprentices
Gujarat, Maharashtra, Haryana and Uttar

Pradesh are the top 4 states engaging
more than 60% of the apprentices.
Note: The analysis is deduced from data extracted from

apprenticeship portal.
Source: NAPS Apprenticeship portal, as on Dec (2019,2020), Ministry of Skill Development & Entrepreneurship
37
Distribution of apprentices – by business size
1% 0% 2% 0%
11% 9%
Large
Large Medium
Medium Small
Small 29% Micro
32% 55%
Micro Cottage
Cottage 60%
% of total apprentices (as on Dec 2020) % of total apprentices (as on Dec 2019)
Over 55% of apprentices are engaged by large organizations followed by around 32% by Medium sized organizations.

38
Distribution of apprentices – by Organization Type
Apprentice Distribution - by Organization Type
24%
Central Sector
21%
Private sector businesses (55%) are the major

Organization Type
27%
State Sector employers of apprentices.
24%
50%
Private Sector
55%
0% 10% 20% 30% 40% 50% 60%

% of apprentice engagements apprenticeship portal.
% of total apprentices as on 2020 % of total apprentices as on Dec 2019
Distribution of apprentices – by Industry Type
Industry wise Distribution of apprentices
16.5%
Other
20.6%
0.5%
Trading
0.5%
Industry Type
33.4%
Services
24.6%
49.6%
Manufacturing
53.3%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

% of total apprentices
% of apprentices (as on Dec 2020) % of apprentices (as on Dec 2019)

The Manufacturing industry engages the highest number of apprentices (53.3% overall). The Automobile & Allied Industries and
Manufacturing & Engineering are the leading sectors in apprentice engagements
Cost and Benefit
Analysis
41
Cost Benefit according to stakeholders involved
Government
Apprentices
Enterprises
Costs Benefits
Costs Benefits
Costs Benefits
While the cost of training apprentices is higher for all stakeholders in the first year, there are many benefits to be accrued over long term.
• Companies enjoy high productivity at lesser cost and benefit primarily from government repayments, subsidies and other monetary assistance.
• Apprentices benefit from the opportunity of undergoing 'on the job' training and are exposed to real working conditions.
• The government benefits from social and economic advantages such as increased tax revenues and lower unemployment rate.
Source: Skills for Employment,2018, International Labor Office
Cost Benefit Analysis – Apprentices vs Fresher regular employee
Cost and Benefit - 2020 Apprentice -First Year Permanent employee - First Year
Average Basic Stipend / Salary 10500 15000
Production Contribution 25 25
Experienced workers wage 25000 25000
Employer Cost
Stipend Cost / Month 10500 (Basic Pay) 17716 (Basic Pay+ESI+PF) An employer employing an apprentice and a
Supervisory cost regular employee (fresher) may not be able to
Training Manager Salary recover the investment made on them during
60000/Month 4800 4800
% of training manager time spent 8% & the first year. However, considering the
3% reimbursements and other benefits from
Training Costs (approx.) 3000 3000
Government, the cost involved in training
Other Costs 750 750
Total Costs 19050 26266
apprentices is much lesser than for a regular
Employer Benefits fresher candidate hired as an employee.
Production Contribution 6500 6500
Reimbursement of stipend from
Government 1500 0
Other Benefits (Training Cost
reimbursement) 1000 0
Total Benefits 8500 6500
Cost-Benefit
Total Benefits - Total Costs (10550) (19766)
Source: Using Benefit Cost Calculations to Assess Returns from Apprenticeship Investment in India, 2014, International labor organization, ‘Salary Primer’, 2020, Teamlease.
43
Annexure
RESEARCH METHODOLOGY
SAMPLE DESIGN
BIBLIOGRAPHY
44
Research Methodology
Sample Design
Random stratified sampling technique was used to identify respondents for the survey. Respondent Selection
Target respondents for the study were HR Managers, HR head, Business owners or directors (for small companies).
Data Collection
The survey instrument was then administered to the target respondents using the valuvox® mobile survey application. Please
refer the following section named ‘Sample Distribution’ for details on city and business size-wise breakup of the sample.
Data Analysis
Data Analysed using statistical methods and techniques. The Major tools used are MS Excel and Python.
45
Sample Design
Respondents who have apprenticeship Program - by city Ahmedabad
Bangalore
5% 7%
Chandigarh
11% Chennai
Respondents who have apprenticeship program – by sector 16% Coimbatore
7% Delhi
Hyderabad
Agriculture & Agrochemicals 5% 5% Indore

4% 5%
5% Automobile & Ancillaries Kochi
9% Beauty & Wellness
5% 5% Kolkata
BFSI 9%
2%
2% Construction & Real Estate Lucknow
eCommerce 7%
5% 5% Mumbai
Education
Electrical & Electronics 5% 9% Nagpur
5% FMCG & D 5%
7% Pune
Health & Pharmaceuticals
IT / ITeS
14% Logistics
7% Manufacturing & Engineering Respondents who have apprenticeship program - by business size
Media and Entertainment
Retail
5% Telecommunication
5% Travel & Hospitality
5% Logistics
31%
8% 5%
39%
8%
30%
Large Medium Small

Agricul Health Media
ture & Autom Beauty Constr & & Travel
Agroch Appar obile && uction Pharm Manuf Entert Teleco &
Sample Design
City/S emical el & Ancilla Wellne & Real FMCG aceutic IT / Logisticacturin ainme mmuni Hospit
ector s Textiles ries ss BFSI Estate & D als ITeS s g nt Retail cation ality Total
Ahmed
abad 0 0 7 0 11 4 4 0 0 0 7 4 14 7 11 67
Bengal
uru 0 0 14 0 4 0 4 7 11 4 7 0 4 0 4 57
Chandi
garh 7 7 4 4 0 7 7 0 0 4 4 4 7 0 0 53
Chenn
ai 0 4 7 11 4 4 7 7 0 0 7 0 4 0 4 57
Delhi 4 0 4 0 0 4 4 0 7 11 0 4 0 7 11 53
Hyder
abad 7 7 0 0 7 4 0 7 0 0 4 4 0 4 0 42
Kochi 7 4 0 4 0 0 7 0 0 7 0 0 11 0 0 39
Kolkat
a 0 14 4 4 0 4 0 4 4 4 11 0 0 4 4 53
Luckno
w 0 4 0 4 4 4 7 4 0 0 4 7 0 4 0 39
Mumb
ai 0 7 0 0 4 0 0 4 4 0 7 4 0 7 14 49
Total 25 46 39 25 32 28 39 32 25 28 49 25 39 32 46 509
Respondents by Sector & City
Agriculture & Health & Media &

Agrochemical Apparel & Automobile Beauty & Construction Electrical & Pharmaceuti Manufacturi Entertainme Telecommuni Travel &
Row Labels s Textiles & Ancillaries Wellness BFSI & Real Estate eCommerce Education Electronics FMCG & D cals IT / ITeS Logistics ng nt Retail cation Hospitality
Ahmedabad 1 2 3 2 2 2 1 2 2 2 3 2 2 4 1 2 2 3
Bangalore 3 2 4 4 5 4 4 3 2 4 5 5 4 5 4 5 2 2
Chandigarh 2 1 1 2 2 2 1 1 2 3 2 3 2 2 2 3 1 2
Chennai 3 1 3 3 4 3 2 2 2 4 3 5 1 3 3 4 2 3
Coimbatore 2 4 1 2 2 2 1 1 2 2 1 2 1 2 1 3 1 2
Delhi 2 2 4 1 3 3 2 2 2 4 3 3 3 2 2 4 2 4
Hyderabad 3 2 3 3 4 1 3 3 2 3 4 6 2 1 3 4 3 1
Indore 2 1 2 2 2 1 2 2 1 3 3 2 1 2 1 3 1 1
Kochi 1 1 3 2 2 1 1 2 1 3 2 2 2 2 1 3 2 3
Kolkata 2 1 2 3 3 2 2 1 1 2 1 3 2 2 2 4 4 3
Lucknow 1 2 1 2 2 1 2 2 2 1 1 2 1 2 1 2 1 4
Mumbai 2 4 4 3 5 1 2 4 4 4 3 3 4 2 5 4 3 1
Nagpur 2 1 3 1 4 1 1 2 2 3 2 2 2 4 1 4 3 2
Pune 1 4 4 1 3 4 2 2 3 4 2 3 2 2 2 1 4 1
Respondents by City & Business size
City/Business size Large Medium Small
Ahmedabad 13 15 14
Bangalore 16 30 25
Chandigarh 6 12 10
Chennai 13 21 25
Coimbatore 7 18 17
Delhi 15 14 20
Hyderabad 11 18 20
Indore 7 6 15
Kochi 7 11 12
Kolkata 10 16 15
Lucknow 5 12 16
Mumbai 13 17 24
Nagpur 5 13 16
Pune 9 12 19
43
Bibliography
Ministry of Skill Development and Entrepreneurship NAPS portals www.apprentice.gov.in, https://apprenticeshipindia.org
Ministry of Human Resource Development NATS mhrdnats.gov.in
‘India Skill Report’, 2020, PeopleStrong, India's fastest growing HR solutions, and HR Technology Company, and Wheebox
‘Using Benefit Cost Calculations to Assess Returns from Apprenticeship Investment in India’, 2014, International labor organization
‘Skills for Employment’,2018, International Labor Office

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Forecast for CY : Jan 2021 – Jun 2021

Apprenticeship Outlook Report

Sectors covered Cities Covered Industry classification

Net Apprenticeship Outlook (NAO)  (A) minus (B)

Top 3 reasons for employers to increase hiring of apprentices:

Top 3 reasons for employers to decrease in hiring of apprentices:

Sector, city and business category wise NAO highlights.

Key areas of hiring during Jan 2021 – Jun 2021

Overview of distribution of apprentices across states, organization types and Industries.

Cost benefit Analysis of Apprenticeship model

Net Apprenticeship Outlook (HY Jan -Jun2021)

Jan– Jun, 2021 Jul– Dec, 2020

31% 15% 43%

Top Reasons Top Reasons

Manufacturing & Engineering Education Chennai Coimbatore

• Technician • Optional Trade

40% 38% 38% 18% 19%

10% 9% The Net Apprenticeship Outlook for large businesses (50%) is

Manufacturing Agriculture Services

•Fitter/Welder- 31% •Sales Executive - 25% • Customer Support Executive- 28%

Jan– Jun, 2021 62% 25% 16% 46%

Jan– Jun, 2021 50% 35% 15% 35%

Jan– Jun, 2021 60% 20% 20% 40%

Graduate Apprentices Trade Apprentices

Fitter/Welder Production Automobile Computer Maintenance

Estimated number Estimated number

Estimated number of hires

The average number of apprentices likely to be hired

Hiring under various functional areas - by Industry -

15% 11% 20%19%

Jan-Jun, 2021 Jan-Jun,2020

Technical knowledge Willingness to learn Physical fitness Personality

Gender Preference - by city -HY Jan-Jun,2021

32% 33% 32% 33% 33%

Male Female No such preference

Employer's Perception on apprentice productivity - by business size

92% in Jan-Jun 2020 to 86% in Jan –Jun 2021. 20%

Percentage Hires By Employment Type

Overall, employers prefer permanent employment over

Permanent Contractual Apprentices

Source: India Skills Report, 2020, Wheelbox

25% Lack of awareness about

Lack of staff to mentor, coach

Lack of training infrastructure

Gujarat, Maharashtra, Haryana and Uttar

Note: The analysis is deduced from data extracted from

Note: The analysis is deduced from data extracted from

Apprentice Distribution - by Organization Type

Private sector businesses (55%) are the major

0% 10% 20% 30% 40% 50% 60%

% of total apprentices as on 2020 % of total apprentices as on Dec 2019

Industry wise Distribution of apprentices

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

% of apprentices (as on Dec 2020) % of apprentices (as on Dec 2019)

Agriculture & Agrochemicals 5% 5% Indore

Large Medium Small

Respondents by Sector & City

Agriculture & Health & Media &

Respondents by City & Business size

City/Business size Large Medium Small