The State Must Equip Workers

Context: Due to the disruptions in the working conditions and changing scenarios amidst COVID, the state must equip workers for a post-pandemic economic recovery.

Impact on employment: 

• Less demand for goods and services: due to the closing down of hotels, airlines, brick and mortar retail and large entertainment avenues.
• Pay in many healthcare, homecare, and eldercare jobs is already at rock-bottom levels.
• Switch towards online platform: There is more demand for everything online including healthcare, childcare, and home- care services.
• Skill Disruptions:  New entrants to the labour force will need different sets of skills.
• Firms have limited capacity to provide on-the-job training.
• No guarantee of the fruitfulness of training post-pandemic due to uncertainties. 
• Trainee suffering from financial stress constraining choices for self-training.

Way Forward: 

• Productive training: Training works best when it is closely connected to a real job or occupation.
• Program design should be informed by detailed government forecasts for the types of jobs.
• Collaboration with firms and industries on program design and recognizing employers as a source of information
• For E.g. Europe has an advantage because of strong trade unions that can cooperate with employers’ associations in organizing apprenticeships.
• Create an enabling environment: through tax credit and subsidies.
• The credit could be structured along the lines of the tried and true research-and-development tax credit.
• Adequately funded technical and vocational schools and colleges.