Linking Employment Services, Skills Development and Labour Market Needs: Issues for India

The Indian skills system has undergone a period of significant reform in recent years with a range of initiatives aimed at improving the supply of skills and increasing private sector involvement in the overall skill system. At the heart of these reforms is the assumption that improving the supply of skills will reduce mismatches with labor market demand. Whilst the role of public and private employment services in India is recognized, their potential to address youth unemployment, support the skills system and enhanced labor market functioning have not been fully developed. This article reviews major reform initiatives in the skills system, examines the delivery of employment services in India, and suggests ways through which employment services and skills development system can be better integrated to improve labor market outcomes for both employers and job seekers.