Ramani Dathi on how to create more jobs

Ramani Dathi, CFO, Teamlease Services, says “while the kids are getting the degrees, they are not fully equipped to take up jobs in the manufacturing sector. We clearly need a skill bridging solution which can be in the form of either an apprenticeship or on the job training or some sort of work integrated degree programmes to bridge this gap.”



When it comes to manufacturing, we need a larger impetus. How do you see this sort of problem being addressed?

Ramani Dathi: Almost 80-85% jobs that we have created over the last 15 years are all in the service industry. Only 15% of them have been in manufacturing and other related services. The main issue here is that we have noticed the skill gap. Because while the kids are getting the degrees, they are not fully equipped to take up jobs in the manufacturing sector. We clearly need a skill bridging solution which can be in the form of either an apprenticeship or on the job training or some sort of work integrated degree programmes to bridge this gap.

Just getting your take in terms of the private sector, the CEA is very categorical in saying that it is the private sector that must do the hiring. Is this something that you would concur with?

Ramani Dathi: Yes, definitely and to some extent, that is the trend we have already been seeing over the last few years. But the main thing which we have seen as that wage inflation and formalisation are in direct proportion because in formal sectors, we have been consistently seeing the wages rising between 6% and 12% per annum over the last few years whereas in the informal sector, the wages have been stagnant.

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Since 80% of the working population are employed in the informal sector, we are seeing that the overall wage inflation is stagnant. The only solution would be more formalisation and more productivity coming in from the private sector

Harry Byrne

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