HUMAN RESOURCES

Human Resources refer to the people of a country who contribute to its economic growth, social development, and overall nation-building. In India, nearly 65 percent of the population lies in the working-age group. This demographic structure presents a historic opportunity to convert population advantage into economic growth, provided the workforce is healthy, educated, skilled, and productively employed.

Human resources are not limited only to those currently employed. They include:

• People working in the organised sector contributing directly through income taxes.
• People engaged in the unorganised sector contributing indirectly through production and consumption.
• Public servants who ensure smooth functioning of governance and administration.
• Students and youth who represent the future workforce of the country.
• Socio-economic upliftment through poverty alleviation, rural development, urban development, education, and health also enhances the quality of human resources.

India’s challenge lies in the fact that nearly 85 percent of the workforce in the unorganised sector lacks formal skill training. The annual incremental requirement of trainers is about 20,000, whereas current capacity is only around 2,000, creating a severe skill bottleneck.

CHALLENGES RELATED TO HUMAN RESOURCES

• Low Employability:
  • According to the India Skills Report 2021, only about 45.9 percent of Indian youth are considered employable. UNICEF data indicates that more than half of Indian youth may not have the necessary education and skills for employment by 2030.
• Lack of Job-Relevant Skills:
  • There exists a large mismatch between industry demand and skills imparted by educational institutions. Vocational education lacks credibility and market acceptance.
• Insufficient Training Capacity:
  • Around 12 million people enter the workforce annually, while the country’s total training capacity is about 4.3 million.
• Low Awareness of Entrepreneurship:
  • Around 70 percent of Indian youth are unaware of entrepreneurship-related schemes, as highlighted in the ORF–WEF report “Young India and Work”.
• Limited Female Workforce Participation:
  • Social norms, lack of childcare support, safety concerns, and limited skilling opportunities restrict women’s participation.

WHAT IS HUMAN DEVELOPMENT REPORT

The Human Development Report was first published in 1990 by the United Nations Development Programme. It was conceptualised by Amartya Sen and Mahbub ul Haq, shifting development focus from income to human well-being.

KEY INDICES IN HUMAN DEVELOPMENT REPORT:

• Human Development Index (HDI)
• Inequality Adjusted HDI
• Planetary Pressures Adjusted HDI
• Gender Development Index
• Gender Inequality Index
• Multidimensional Poverty Index

WORLD SOCIAL PROTECTION REPORT 2021–22

The report highlights global and regional status of social protection systems.

Key Findings:

• Countries like Mongolia, New Zealand, Singapore, and Australia have nearly universal social protection.
• In Asia-Pacific, three out of four workers lack protection against workplace injury or illness.
• Low-income countries including India cover less than 5 percent of workers under work injury schemes.
• Globally, only 46.9 percent of people had access to at least one social protection benefit.

Indian Perspective:

• India spends relatively low on social protection, covering only about 24.4 percent of the population.
• Benefits under non-contributory schemes are often inadequate.
• However, schemes like MGNREGA provide partial income security to informal workers.

DEMOGRAPHIC TRANSITION IN INDIA

Population Growth:

• India became the most populous country in 2023 with around 140 crore people.
• Projected population is 150 crore by 2030 and 166 crore by 2050.

Decline in Total Fertility Rate:

• India’s TFR declined from 6 in the 1950s to around 2 in 2021.
• Most states have achieved replacement-level fertility except Bihar, Uttar Pradesh, Jharkhand, Manipur and Meghalaya.

Improvement in Mortality Indicators:

• Life expectancy increased from 32 years in 1947 to around 70 years.
• Infant mortality reduced from 133 in 1951 to 27 in 2020.
• Maternal mortality ratio declined sharply to about 103 in 2019.

SIGNIFICANCE OF POPULATION GROWTH

• A larger working-age population increases economic activity.
• Dependency ratio has declined significantly.
• India will contribute nearly one-fifth of the global workforce in the next 25 years.
• Demographic dividend can boost growth if supported by education, health, and skills.

GOVERNMENT INITIATIVES

Skill India Mission:
Enhances employability through large-scale skilling.

National Policy on Skill Development and Entrepreneurship 2015:
Provides unified framework for skilling and entrepreneurship.

Pradhan Mantri Kaushal Vikas Yojana:
Skill training with financial incentives.

Deen Dayal Upadhyaya Grameen Kaushalya Yojana:
Targets rural poor youth for wage employment.

PM-YUVA Yojana:
Promotes entrepreneurship education and support ecosystem.

India Institutes of Skills:
Aims to create world-class skill infrastructure.

STRIVE Project:
Improves ITI and apprenticeship outcomes.

SANKALP:
Strengthens short-term skilling with focus on inclusion and quality.

SUGGESTIONS AND WAY FORWARD

• Strengthen state skill development missions.
• Integrate skilling with formal education.
• Improve trainer capacity and infrastructure.
• Align skilling with sectoral and regional needs.
• Promote women participation through targeted skilling and childcare support.
• Encourage entrepreneurship through credit access and mentorship.
• Ensure inclusion of marginalised and disadvantaged groups.

UNICEF RECOMMENDATIONS

• Combine education with workforce readiness.
• Promote soft skills, technical skills, and entrepreneurship.
• Increase spending on secondary education.
• Support labour-intensive industries and technology upgradation.
• Provide childcare facilities and paid leaves to boost women employment.

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Subject: Economics

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