In-depth Analysis of the COVID-19 impact on India Career Skilling Industry
COVID-19 pandemic posed a huge threat on the lives & businesses across the globe. Number of cases reached 10.4 Mn in India as a result of this pandemic, making the country one of the most affected among others. In order to reduce the number of cases, government lifted lockdown restrictions in phases while the shutdown of operations took a toll on the country’s economy. According to IMF projections, India’s GDP will contract by 10.3% during FY 2020-21, making India one of the biggest hit countries.
The halt in most of the economic activities presented unforeseen outbreak and huge losses across all the major industries especially Logistics, Hospitality, Travel and Tourism. More than 50% companies are not yet fully operational in India and are still working on limited capacity and workforce they have. 10%-20% decline is still anticipated in the revenue for some of the companies in the country. Economic uncertainties like this have forced companies to lower down their costs and consider delaying long-term capital expenditure plans. Majority of the companies have implemented cost containment initiatives, some cancelled planned investments and others have made modifications in their investment plans to overcome the impact of the situation.
COVID-19 outbreak in India and at Global level was a major turning point in Education and Skill Development sector. According to data published by Centre for Monitoring Indian Economy (CMIE), one in four employees in India lost their jobs in just two months of the pandemic i.e. March-April 2020.
The outbreak that resulted in massive layoffs and pay cuts forced many graduates and working professionals in India to utilize the career skilling options and rethink on their career options. Fresh graduates who have just entered the corporate world or are just entering the workforce would need to constantly up-skill themselves as layoffs would be the maximum in their scenario.
Growth in GIG Workforce
India is the leading country in the Online Labor Market with 24% share at global level in terms of workforce. 80% working adults believe that freelance work is a viable alternative to full-time employment and would consider taking up freelance work in the near future. Percent of Companies aiming to Hire GIG Workers have also increased in all the sectors as the current pandemic have opened a new GIG workspace as a result of the flexible timings in Work from Home scenario. Freelancing has become the next best opportunity for some of the graduates to enter as many campuses across the country are witnessing job offers being rescinded, specifically in Tier-2 & Tier-3 colleges.
Revival of New Job Opportunities & Sector Growth in India
Employment workforce across all the sectors is anticipated to grow in future, wherein a significant proportion of fresher hiring is estimated to happen across sectors such as FMCG/Retail and Pharma & Healthcare. Initiatives like “Make in India” and several others, increased number of domestic companies across various industry domains resulting in higher number of jobs in the marketing, sales and support, production roles.
The growth in job opportunities will create a high competition among graduates owing to low skill proficiency since finding an employment is still considered a challenge among them as they generally take more than 10 months to find an appropriate or desired job.
Future of Career Skilling Platforms
In the future, the career skilling platforms will foresee intense competition in terms of the optimal course structure in order to increase the number of enrollments or retain existing users. Sectors are also rapidly growing and are in need of professionals with good business aptitude and communications skills, interpersonal skills, basic technical skills and others. First time job seekers on the other hand across different education levels in the country have now understood the complexity & uncertain environment in the job industry and hence are thinking of acquiring new skill sets to make them stand out in the crowd and to increase their success rate to secure job in a post COVID world. Basis all these factors, the professional skilling market is anticipated to grow with a CAGR of 30%-35% on the basis of revenue during the forecast period 2019-2025.
Key Segments Covered:-
Demand Supply Gap (Number of Job Seekers and Jobs Available)
Target Addressable Market
Service Addressable Market
Service Obtainable Market
Online Ed-Tech Market (Revenue)
By Sectors (Employment Workforce)
IT & ITES
Retail & FMCG
Pharma & Healthcare BFSI
Telecom & Allied
Eruditus & Emeritus
Hughes Global Education
Key Target Audience:-
Career Skilling Companies
Professional Skilling Companies
Corporate Training Companies
Venture Capital Firms
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Ankur Gupta, Head Marketing & Communications