Why is the employment outcome of vocationally trained youth so poor?: Evidence from selected districts of Punjab and Haryana

This paper explores the employment patterns of vocationally trained pass-outs in two selected districts of Punjab and Haryana. It also estimates the determinants of their labour force participation decision and the existing skill gap among them. This paper is based on primary data, which is collected both qualitative and quantitative information using three different and complementary primary surveys. The major findings of the paper suggest that open unemployment rate among vocationally trained pass-outs is very high. This is mainly due to their poor skill endowments. Moreover, demand for relatively higher wages/earnings compels the private sectors employers not to prefer them. Instead, they prefer to hire low-skilled workers (mostly illiterate or with up to a primary level of general education) with much lower monthly wages rates. The employment situation of vocationally passouts, in government sectors, is even worse. In the case of self-employment, both skill and financial constraints still play a major role. Hence, it is argued that reducing existing skill gaps through reforms in both vocational and general education, along with the provision for wage employment in government sectors would reduce the extent of youth unemployment significantly.