Top 5 Indian Cities Fostering Highest Employer Intent for Apprenticeship Engagement

In 2023, various industries experienced layoffs and a slowdown or halt in recruitment. The underlying issue of a significant skill gap among the youth has exacerbated this situation. As per the India Skill Report 2023 data, 70% businesses across industries acknowledge that there is a skill gap in their employees. To counteract this, employers are increasingly turning to apprenticeships, evident in the soaring Net Apprenticeship Outlook (NAO) metric, a key indicator of employer sentiment. At 75% NAO, the net intent of hiring apprentices is at all-time high, as per the Apprenticeship Outlook Report by TeamLease Degree Apprenticeship, HY2 23-24. This shift marks a substantial increase from previous years, showcasing a nearly 30% Compound Annual Growth Rate (CAGR).

Mentioned below are the list of Top 5 cities showing the highest employer intent for apprenticeship in decreasing order, along with their apprenticeship landscape, as per the Apprenticeship Outlook Report by TeamLease Degree Apprenticeship.

Pune- Pune secures the highest NAO among India’s cities with 86% NAO. Pune is a leading IT center in India and holds a crucial role as a hub for both automobile and manufacturing industries nationwide. Despite being a non-metro area, it stands out, ranking among the top 5 since July 2022. Not just a financial hub, Pune shines in per capita income. Its livability echoes consistently, and its NAO surged by 10% from Jan-Mar 2023 to HY2: Oct – Mar 2023-24, hitting 86%. The Apprentice Outlook Report forecasts a significant 24% engagement of Diploma Apprentices in Pune during this period.

Bangalore- Bangalore clinched second place with an impressive 85% NAO. Known as the Electronic City of India, the City is a preferred location for industrial progress. Renowned for its IT sector, startups, automotive manufacturing, aerospace industries, and electronic and hardware production, it stands out for offering quick career advancements and plays a crucial part in India’s economic landscape. Remarkably, Bangalore witnessed a substantial 17% spike in NAO from Jan-Mar 2023 to Oct-Mar 2023-24 HY2, hitting 85%. The top industries engaging apprentices include Engineering & Industrial (89%), BFSI (86%), and Retail (82%).

Coimbatore- Coimbatore secures the third spot with an impressive 83% NAO, standing as the second non-metro city in the top 5. Known for its manufacturing, education, and healthcare prominence in Tamil Nadu, it’s among the fastest-growing tier-II cities. Hosting over 25,000 industries, primarily in engineering and textiles, Coimbatore expects a higher engagement (25%) of Graduate Apprentices compared to Trade Apprentices among employers.

Delhi- Delhi secures the fourth spot with an 82% NAO, standing as the entertainment and corporate hub of the NCR. Among the fastest-growing states, Delhi reported a Gross State Domestic Product (GSDP) of Rs. 10.4 trillion (US$ 130 billion) in 2022-23. It boasts a thriving real estate sector and stands as a sought-after tourist hotspot. Becoming a prominent startup hub, Delhi serves as the primary commercial center in North India. Employers in Delhi predominantly engage in Telecommunication, Electrical and Electronics, and Construction and Real Estate industries, for apprentices.

Hyderabad- Hyderabad secures the fifth spot with an 80% NAO, boasting a substantial startup landscape. Hyderabad boasts robust sectors in IT, pharmaceuticals, life sciences, and real estate, establishing itself as a global trade hub. The city has experienced growth in IT enterprises, biotech, insurance, and finance, fostering a significant employment base in ancillary sectors like trade, transport, communication, real estate, and retail, diversifying from its previous service sector dominance. Top industries engaging apprentices in Hyderabad include Electrical and Electronics, Aerospace and Aviation, and Automobile and Ancillaries, shaping its apprentice engagement landscape.

Conclusion- In a dynamic Indian job market marked by a slowdown in hiring and a significant skills gap among the youth, the resurgence of apprenticeship engagement stands as a beacon of opportunity. These cities, each with their unique economic contributions and industry landscapes, signify a shift in talent development strategies. The surge in Net Apprenticeship Outlook (NAO) reflects a fundamental shift in how organizations perceive talent development. This trend not only addresses skill shortages but also highlights the cost-effectiveness and community engagement aspects. As industries adapt, the increase in apprenticeships becomes integral for fostering talent, bridging skill gaps, and fortifying India’s economic prowess. These cities stand as examples of the evolving landscape where apprenticeships play a pivotal role in shaping a skilled workforce for a thriving economy.

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