Maharashtra Election 2024: State’s job scheme stumbles; just 21% apprentice placements in private firms

MUMBAI: Maharashtra’s ambitious youth apprenticeship initiative, launched as part of its pre-poll supplementary budget for the financial year 2024-25, was aimed at bridging the gap between the unemployed youth and the state's thriving industrial ecosystem.

The Mukhyamantri Yuva Karyaprashikshan Yojana (CMYKPY), or Chief Minister Youth Apprenticeship Scheme, promised to transform the employment prospects of 10 lakh young residents aged 18 to 35 at an annual cost of Rs 5,500 crore, the state had announced. By fully subsidising trainee stipends – ranging from Rs 6,000 to Rs 10,000 depending on educational qualification – the state government sought to incentivise private businesses to invest in fresh talent.

However, data accessed by Careers360 from the state Skills, Employment, Entrepreneurship and Innovation Department shows that is still far from achieving its target. As of November 18, two days before the state goes to polls, the number of aspirants placed through CMYKPY stood a little under 2 lakh – 1,92,568, to be precise – of which around 1.26 lakh have so far joined their workplaces.

They form only a little less than a quarter of close to 5.14 lakh youngsters who signed up online and offline for the programme since it became operational in early August.

Along with the CMYKPY scheme, the Maharashtra government introduced a number of welfare programmes to court various population groups in the state, including farmers, women and youths. These schemes, including 'Ladki Bahin Yojana', and free electricity for farmers, were prominently publicised by the ruling Mahayuti alliance in its campaign for the state assembly elections to be held on November 20.

CMYKPY scheme: Public vs private hirings

The bulk of the placements under the CMYKPY scheme happened in various government establishments, with the private sector accounting for only around 40,000 out of 1.92 lakh or barely 21% recruitments till date. This disparity is evident even in the available opportunities, though to a lesser extent.

As of now, more than 15,000 government bodies have listed 2.96 lakh positions on the state's portal for CMYKPY, while around 14,000 private organisations have offered 1.21 lakh spots.

To be sure, the state skills minister Mangal Prabhat Lodha had said that the goal of 10 lakh apprenticeships is a yearly one, while the department officials explained that the onboarding of employers and aspirants for the scheme as well as matching and placing candidates according to their preferences is an ongoing rolling process.

CMYKPY, NAPS, Maharashtra employment

CMYKPY is aimed at improving Maharashtra's grim employment scenario in what is often touted as a highly industrialised state.

The Periodic Labour Force Survey (PLFS) of India 2023-24 pegs the state's urban unemployment to be at 5.2%, up from 4.6% in the previous year. The state's overall unemployment rate is estimated at 3.3%, marginally higher than the national avergae of 3.2%. The India Unemployment Report 2023 from the International Labour Organisation (ILO), on the other hand, found the educated unemployment in Maharashtra to be 15% in 2022, compared to 11% from a decade ago.

While CMYKPY is designed along the lines of the National Apprenticeship Promotion Scheme (NAPS), which was launched by the union Ministry of Skill Development and Entrepreneurship (MSDE) in 2016, it's deemed to be more attractive for employers.

Unlike NAPS, where the government pays only a part of trainees' stipends, Maharashtra promised to pick the entire tab of its flagship programme. The stipend amount is given according to the qualification of beneficiaries – Rs 6,000 for a Class 12 graduate, Rs 8,000 for diploma holders and Rs 10,000 for college graduates and postgraduates for a six-month training.

The programme is also relatively light on regulations. While the trainees enrolled through NAPS and other apprenticeship schemes are covered by The Apprentices Act, 1961, and other labour-related laws and rules, CMYKPY is largely devoid of such requirements – some officials are even averse to calling CMYKPY an 'apprenticeship scheme' and instead refer to it as 'internship scheme' to avoid any legal ramifications. The primary responsibility of the employers is to ensure the skilling of their trainees.

Maharashtra govt: Few takers for apprentices

Despite the stated advantages, many private industries in the state are yet to warm up to the idea. They suggest that, especially for the small, micro and medium (SME) organisations, the hassle and potential risks of employing unfiltered freshers trump the seeming benefits of partaking in the scheme.

"It would have made sense if we were to recruit people for low-skill office jobs, but when it comes to understanding business processes and customer requirements, how can we trust unknown people? Besides, the machines and equipment on shop floors are too valuable," said Manish Patil, co-founder of INNOeVERSITY, a Pune-based industry-academia interface platform, which runs a skilling programme in collaboration with the Maharashtra Chamber of Commerce, Industry and Agriculture and several state universities.

Patil said unlike large corporations, most of the SMEs in the state run a tight ship and lack adequate facilities and know-how to conduct training programmes. This coupled with inadequate manufacturing work opportunities and lack of practical exposure among graduates makes hiring apprentices a challenge for them.

"On some level, graduates aren't very desperate for employment due to relative prosperity compared to the past. However, there are needy students, and there are industries in need of skilled workers, but the proper matchmaking isn't happening," he added.

The state officials have acknowledged the poor response from the private organisations. Realising that many were reluctant to offer apprenticeships due to a mandatory insurance clause, the government even decided to bear the cost of monthly premium payments.

Lodha also held multiple meetings with industry organisations to encourage them to participate in the programme.