In the fourth quarter of 2022 (Jan-March 2023), 79 per cent of employers are foreseeing an increase in their apprentice intake compared to 77 per cent of employers during the second half of the calendar year 2022 due to the market’s demand for real-time skilled talent and the need to seize growth prospects, states the Apprenticeship Outlook Report for Q4 2022 (Jan to Mar 2023) byTeamLease Services.
About 37 per cent of employers are willing to increase their intake due to the fact that apprentices are real-time skilled talent available in the market. Additionally, 23 per cent of employers feel that apprentices also help unlock business growth opportunities.
The forecast for net apprenticeships has improved in 12 of the 24 industries. The NAO is highest for large firms and went up from 65 per cent to 69 per cent in July-December 2022; however, in SMEs, the NAO declined from 71 per cent to 64 per cent.
Moreover, in sectors such as engineering and industrial design, which lead the list with the highest NAO (90 per cent), electrical and electronics (88 per cent), and BFSI (74 per cent), there has been a consistent increase in the participation of apprentices.
Employers are eager to boost their apprentice participation to a 94 per cent level in engineering and industrial, a 93 per cent level in electrical and electronics, and an 85 per cent level in the financial services industry, according to the report.
The overall NAO, however, saw a marginal dip of 3 per cent in the current quarter (Jan-Mar 2023), compared to the previous half-year (July-Dec 2022). This report states that this is primarily due to a higher number of employers foreseeing a decrease from 9 per cent to 13 per cent, which is driven by regulatory uncertainty around certain programs and macroeconomic headwinds.
Apprenticeships are a significant part of this talent strategy. Engaging apprentices is a tested methodology for addressing India’s skill crisis and today there are many new roles that are becoming popular for apprentices.For India to achieve its vision of 10 million apprentices in 10 years, the engagement of apprentices will act as a catalyst to reach its full potential,” said Dhriti Prasanna Mahanta, Business Head - Services, TeamLease Degree Apprenticeship.
From a geographic standpoint, the report noted that all metro areas are expected to see an increase. Hyderabad has the highest NAO (78 percent), followed by Delhi (74 per cent), and Bengaluru (68 per cent). In fact, 83 percent of employers in Hyderabad, 82 per cent in Delhi, 80 per cent in Bengaluru, and 81 per cent in Chennai are willing to increase their intake.
The Apprenticeship Outlook Report is a thorough study of apprentice engagement in India, covering 14 cities and 24 industries. The report has surveyed 597 employers and captures the appointment sentiment for the period Q4 2022 (January to March, 2023).