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JOBS STUDY IKP-LABS For World Bank Mid Term Appraisal.

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Presentation on theme: "JOBS STUDY IKP-LABS For World Bank Mid Term Appraisal."— Presentation transcript:

1 JOBS STUDY IKP-LABS For World Bank Mid Term Appraisal

2 JOBS STUDY IKP-LABS STUDY OBJECTIVES Socio-economic impact on youth/family: Increase in income/communication skills/self-confidence /accessing networks Family: social standing/stigma reducing/ receipt of remittances Demand for market-linked trainings HYPOTHESIS Return on investment is high Improves the quality of life

3 JOBS STUDY IKP-LABS Methodology: Indepth Interviews WARANGAL : VO leaders/parents : Raghunathpally/Aswaraopet mandals VO leaders: Peddapendial village VO leaders : Gadepally village – Sangam mandal (non-covered) Employers/alumni : Warangal city Trainees/faculty: Kazipet training centre

4 JOBS STUDY IKP-LABS Indepth Interviews NALGONDA VO interaction: Bibinagar(non-covered) Parents of students: Chetiyal VO and MMS: Devarakonda Employers: Suryapet Alumni: Suryapet Employed: Training centre Nalgonda

5 JOBS STUDY IKP-LABS MS/VO/CC: Identifying needy, vulnerable, unemployed youth between 18-26 years who are children of the SHG members; Sending the list to the district level for selection; Conducting selection process with DRF Deciding the location of the training centre which serves a 35 kms radius DRF : Allocating the youth into various trades based on their interest & competency Training in the respective trades Linking up the trained youth with the Industry for placements Post placement survey to know the status Study the socio economic changes of the family of youth PROCESS

6 JOBS STUDY IKP-LABS Identification of infrastructure for setting up training centre Allocating budget for three months bus pass if non-residential training Counseling parents to send their children to metros especially girls for better opportunities Arranging and ensuring different stakeholder Participate in valedictory function Counseling parents and youth to remain in their jobs despite initial challenges Deciding on the methodology of paying back: soft installments Converging with different government departments who have a job budget OTHER IMPORTANT PROCESSES

7 JOBS STUDY IKP-LABS Induction program includes life skills along with other personal grooming skills Training in English Trades of training: –ITES, –Customer relation management (CRM), –Hospitality, –White goods servicing, –Bedside nursing –White goods mechanic (ACs, Refrigerator, etc.,) Creating B2Y networks and arranging for mentoring and placement stakeholders TRAINING DETAILS

8 JOBS STUDY IKP-LABS Over All Socio Economic Profile Gender Ratio Gender No. of Trainees%age Male588061% Female376939% Education Levels EducationNo. of Trainees SSC Fail 937 SSC Pass 3449 Inter Fail 4250 Inter & Above 1162 Age Profile Age (in Years) No. of Trainees 18-20 6190 21-23 2534 >=24 925

9 JOBS STUDY IKP-LABS Cont… Over All Socio Economic Profile Family Income Ranges Income RangeNo. of Trainees 5000-90001625 9001-120006824 >120001157 Family Sizes Family SizeNo. of Trainees 2 to 45214 5 to 73849 >7468

10 JOBS STUDY IKP-LABS Placement Details SectorTrainedPlacedIn the Class Percentage Automobile807 610 10088 IT Enabled Services1901 1465 22189 Customer Relation 2209 1591 34688 & Sales Hospitality1255 868 27591 Bedside Patient 1546 1124 25089 Assistants Multi Skilled Worker713 541 8488 White Goods Servicing853 611 8882 Micro Irrigation Tech.137 64 5385 Refrigeration & 207 140 2178 AC Mechanism Total9628 7014 143888

11 JOBS STUDY IKP-LABS Cont…Placement Details Salary Ranges Salary (in Rs.)No. of Trainees <=9991038 1000 – 19994788 2000-29991669 >=3000521

12 JOBS STUDY IKP-LABS MENTORS No. of Jobs: 10,000 Mentors: McDonalds, Pantaloon, Kinetic Honda and Bajaj dealers, B level BPOs, ABN Amro and Citi bank call centres Salaries : District level : Rs.18,000 -20,000 annual In metros – Rs.36,000 upwards

13 No of trainees who changed jobs within 6months to 1 year of working period Trainees%ag e Same Job38930 Changed Job90970 Reasons for changing job Reason%age Distance from Home8 Better Working Environment7 Better Working Hours14 Problem in Job4 Better Salary25 Better Opportunity35 Any Other7 POST PLACEMENT SURVEY IN RANGA REDDY DISTRICT Sample size 484 -291m/193 females 93 villages in 18 mandals

14 Reasons for leaving the jobs Reason% Got Married25 Higher Education22 Health problems11 Family problems09 Distance problem23 Timings20 Percentage Of Trainees, who got Increment Within 6 To 1 Year Of Joining Jobs Yes51% No49% Average increment of the trainees who received increment = Rs. 550

15 Financial impact of the program on the family Nature % Clearing Debts38 Savings23 Assets19 Education12 Others8

16 JOBS STUDY IKP-LABS GOVERNMENT PERSPECTIVE: –High unemployment among youth –Social problems –Trainings not market linked COMPANY PERSPECTIVE –Emerging service sector opportunities –Skill gap at entry level jobs –High attrition rates and higher income expectations WHY IKP-LABS PARTNERSHIP

17 JOBS STUDY IKP-LABS Raju 21, painter in Bhongir Mother : SHG member; father marginal farmer Private school duped by the head master 10th standard back to painting Mother informs him of market linked training Today Pizza Hut, upmarket Banjara Hills drawing Rs. 36,000 annually A CASE STUDY

18 JOBS STUDY IKP-LABS ROI Investment : Rs.6,000 Return: Rs.25,200 per annum(2,100 pm average) Investment comes back in three months time ROI 420% 40years of productive life (5% escalation) Earnings Rs.30,44,154 IMPACT ASSESSMENT

19 JOBS STUDY IKP-LABS IKP-LABS (RURAL LABS MODEL) PILOTTED BY IKP Government of India: Based on the IKP-LABS rural model, initiated Grameen Labs with DRF in 4 states and this year plans a contract to do 1,45,000 Jobs nationally including 10,000 in Andhra Pradesh. IMPACT : Policy

20 JOBS STUDY IKP-LABS Achieve Self-Confidence/self-esteem Move to better opportunities without project help Frustrations channelised to aspiration fulfillment Addresses vulnerability (non-agricultural) Improvement in their quality of life Feel good contributing to family income: * Increased awareness of outside opportunities and information IMPACT ON TRAINED YOUTH

21 JOBS STUDY IKP-LABS For girls : save money for marriage Better marriage/divorce stopped Social respect for girls increased: not just housewives Send remittances home through money orders IMPACT : Girls

22 JOBS STUDY IKP-LABS Family prestige goes up with children's white collared job Indebtedness less due to certainty of income flow and clear old debts Savings made in chit funds, banks Surplus for younger children education Well being increases due to extra money for health expenditure and food security IMPACT: PARENTS

23 JOBS STUDY IKP-LABS VOs motivated parents to send children to the trainings Focused on girls Proud girls are working in Hyderabad in computer firms Program is good as youth are sending money to parents for household consumption and savings by chits If unemployed, youth will waste time watching TV and ungainful activities Sufficient notice must be given to VOs to motivate more youth VO LEADERS PERCEPTIONS

24 JOBS STUDY IKP-LABS Acute poverty : Need stipend (Gadepally) Training centre Kazipet Rs.275 insufficient. No buses.Have to travel by autos Construction workers willing to forgo wages for such market- linked trainings Counseling needed to motivate youth that they can do white collared jobs Control villages: 50 unemployed youth in village with 500 families. No information. Willing to send them for training- Bibinagar UNCOVERED VILLAGES/YOUTH: Experience

25 JOBS STUDY IKP-LABS Motivated employees Better than MBA Citi Bank Micro irrigation: more practical training to be given so that youth need not work as trainee. Dropouts occur because of low trainee salary Automobile industry: Youth move out to set out their own mechanical shop. Latent entrepreneurial skills unleashed EMPLOYERS PERCEPTION

26 JOBS STUDY IKP-LABS Addresses social problems in RAIV; hence police cooperate Impacts the next generation of SHGs Definite change in youth in change from rude to polished behavior, dress sense and become role model for others Partnership good since govt. cannot do market linked training Converge with other related govt. depts for this program DISTRICT OFFICIALS PERCEPTIONS

27 JOBS STUDY IKP-LABS Dropouts in multi skilled workers and nursing due to lower salaries Tracking youth difficult as they do not inform about job changes Lack of accommodation in metros poses a problem CHALLENGES

28 JOBS STUDY IKP-LABS Strength of the partnership: –Both IKP & DRF have common vision of providing sustainable livelihoods to the poor Large network of SHGs of IKP-mobilisation of really vulnerable facilitated Weakness of partnership compared to Upadhi/Grameen –Decentralised approach –funding delays Planning difficult for faculty/placements-makes implementation difficult DRF PERCEPTION

29 JOBS STUDY IKP-LABS Lessons for LABS: –Drop trades with low incomes like multi skilled workers –Include practical in trades like micro irrigation to avoid internships with low salaries –Mentor enterprises for trained youth by facilitating credit – videography/photography Way Ahead

30 JOBS STUDY IKP-LABS Systematic approach of budget flow and MOU signing Treat DRF as partners and stakeholders not mere trainers Putting in place counseling facilities at VO level to encourage especially girls to take up better opportunities in metros Lessons for District Functionaries

31 JOBS STUDY IKP-LABS For scaling, appoint at least 2 staff dedicated to jobs in districts Centralized MOU/payment to partner for better quality and planning Half way homes in Hyderabad, Bangalore, Chennai need to be urgently set up to prevent dropouts *Youth can stay in half-way homes for three months with escalating rent till they find their feet Lessons for District Functionaries


33 JOBS STUDY IKP-LABS Budget/Targets 2006-8 1,50,000 jobs 2006-7 Rs. 30 crores 68,200 jobs IKP-LABS 18,200 (GOI,DFID,IKP) Security 16,900 Textiles 22,000 District models/JKC/Kiosk/pilots/it-rural 12,000 Budget requirement for 2007-8 Rs. 40 crores

34 JOBS STUDY IKP-LABS LAs in place, 2 per district CRPs-15 in star districts and 8 in others Designed training modules for LAs and CRPs For CRPs, focus is on counselling, motivation, communication, work planning * Strong building blocks for scaling up

35 JOBS STUDY IKP-LABS English and soft skills module: Detailed plan made Fund requirement Rs. 20 crores Quantum jump in employability Employment exchanges become livelihood hubs Link with Jobs search engines Bringing poor closer to the markets

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