Indian industries and employers have expressed the net intent to increase their apprentice pool in H2, 2022.  Close to 77% of employers have indicated an interest to increase their apprentice intake in the half-year period, a recently launched TeamLease Degree Apprenticeship (TLDA) report said.

The findings reveal that around 55% of Indian industries’ employers have expressed net intent to increase their apprentice pool in H2, 2022. Overall, apprentice hiring sentiment has seen a 24% increase in H2 2022, as compared to the H2 2021.

According to the report, both manufacturing and services industries have indicated positive hiring sentiments.

In the manufacturing sector, the leading industries include electricals and electronics, aerospace and aviation, and engineering and industries. The laggards in the manufacturing segment are handicrafts and jewellery (Net Apprenticeship Outlook (NAO) 55%), followed by apparel and textiles (NAO: 52%) and healthcare (NAO: 47%)).

The constant growth and development in the electricals and electronics sector have paved the way for product and service innovation. Fuelled by the increase in per capita income and consumption post the pandemic, the electrical and electronics sector tops the list with highest the NAO. Around 92% employers in the sector are keen to deploy apprentices as opposed to 18% in H2 2021. The focus region where the demand has been high are Hyderabad and Bengaluru. Some of the key profiles for which companies are deploying apprentices include electrician/ wireman, mechanical engineer and machine operator.

Interestingly, according to the Apprenticeship Outlook Report, aerospace and aviation has also emerged as top sector for apprentices for the first time. Around 88% employers are keen to hire more apprentices. The sector is globally understaffed in the Covid aftermath and organisations have found apprenticeship to be a lucrative solution to their talent crisis. The top profiles in the sector are service executive, mechanic, machine operator and customer care associate.

With industrial activity and manufacturing output increasing at a frenetic pace, the engineering and industrial sector has seen an NAO of 87% in H2 2022, with noticeable high demand for profiles like machine operator, mechanic and welder. In H2 of the previous year, NAO stood at 68%.

From a services sector point of view, the leaders in apprentice hiring are e-commerce, telecom and BFSI and sectors were hiring has been low are Logistics (NAO:49%), Life sciences(NAO:45%)and Education (NAO: 41%).

Overall, the e-commerce sector has grown exponentially over the last three years. According to industry data, India’s e-commerce market is expected to reach US$ 111 billion by 2024 and US$ 200 billion by 2026. The confluence of social e-commerce, quick commerce and social e-commerce has created more demand in the industry. Additionally, the festive season has also led to a surge in demand, driving organisations to hire across profiles and categories. Close to 85% of employers in the e-commerce segment have shared the outlook to engage with apprentices in H2, as compared to 47% in H2 last year. The top profiles for apprentices include sales and marketing executive, marketing, operations, account executive and majority of the hiring is across regions like Coimbatore and Pune.

Close to 81% of employers in the telecom are looking for skilled apprentices across profiles like assembly line operator, telecom in-store promoter, technician. In the second half of 2021, NAO stood at 38%. The positive outlook is an outcome of multiple factors like the expected increase in employment for implementation of 5G which would need a skilled workforce and organisation realising the potential of leveraging apprenticeship to create talent a strong resource pool.

76% of employers indicated an interest to deploy apprentices across profiles accounts executive, operations associate, computer operator and database engineer. Overall, the BFSI sector has remained traditionally warm towards apprentices’ engagement.

Sumit Kumar, Chief Business Officer, TeamLease Degree Apprenticeship, said, “As the effects of the pandemic abate, businesses are seeing growth/revival and employers are harbouring overall positive hiring sentiments. But the interesting aspect is that hiring positivity is not merely restricted towards blue-collar and white-collar profiles but apprentices as well.”

“More organisations across industries have realised the welding power of apprenticeships to create a skilled talent pool. On the other hand, due to the interventions of NEP and the aggressive efforts to expand industry-academia partnerships, awareness at a candidate level has also increased. These  factors are aiding the positive sentiment towards apprentice engagement”.

The Apprenticeship Outlook Report is a thorough study, covering 12 cities and 24 sectors. The report has surveyed 789 employers and captures the appointment sentiment for the period HY (July to December) 2022.