Employability of Economics Graduates - Bridging the gap!

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DEE Conference 2011
Employability of Economics Graduates Bridging
the gap!
G. S. Panikar, Satheesh Menon, Jose Augustine,
Rajam Rajagopalan The Economics Club, Mumbai
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The Road Ahead

• Background
• Research objectives
• Research Methodology
• Survey of Employers
• Academicians perspective
• Survey of Recent Economics Graduates
• Bridging the gap

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Background

• Indian economy
• high growth rates
• managed to survive the global slowdown
• increasingly favourable investment climate
• Huge domestic demand fuelled by a growing middle
  class
• Need for economists who can
• analyse both the domestic market as well as
  global trends and predict opportunities

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Background

• India has one of the worlds youngest population
• Unprecedented opportunity to accelerate growth
• Equipping the youth with the right set of skills
  critical to acquire a competitive edge and
  maintain its engine of growth The World
  Development Report 2007
• Increasing employment opportunities available
• Yet organisations are facing a shortage of
  skilled and competent manpower!

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Employability a key concern

• Do employers feel that economics graduates have
  the requisite skills and competencies?
• If there is a skill gap, how can it be filled?
• What steps should institutes teaching economics
  take to develop inadequate skills?
• How can students be taught to apply their skills
  in the real world?
• How do we make economics graduates employable
  in the true sense of the word?

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Objectives of the study
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Objectives

• To elicit responses with respect to the skills
  and attributes that enhances employability for
  economics graduates
• To understand the attitude of potential employers
  towards economics graduates
• To identify skill gaps vis-a-vis the needs of
  employers
• To come up with measures to fill these gaps by
• Elaborating the role of educational institutions
  and academics
• Identifying areas of industry-academia
  partnership

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RESEARCH METHODOLOGY
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• METHODOLOGY Mix of Qualitative Quantitative
  Research
• RESEARCH TOOLS Interviews and Focus group
  discussion
• MARKET Mumbai
• RESPONDENTS
• Employers
• Academicians
• Recent economics graduates who are employed

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• SAMPLE SPREAD
• Interviews
• 14 interviews with Employers
• 6 interviews with Academicians
• 20 interviews with recent economics graduates
• One Focus Group Discussion with Employers

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OBSERVATIONS FROM THE EMPLOYER SURVEY
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SECTORS COVERED UNDER THE STUDY SECTORS COVERED UNDER THE STUDY

Consultancy 14.28
Banking 21.42
Fin. Services 14.28
Govt. Services 7.14
Think Tank 14.28
NGO 7.14
Manufacturing 7.14
Others 14.28
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Key tasks performed by economics graduates
ACTIVITIES OF ECONOMICS GRADUATES IN THE ORGANISATION () ACTIVITIES OF ECONOMICS GRADUATES IN THE ORGANISATION ()
Data Collection 57.14
Research 100
Policy Making 35.71
Statistical / Mathematical Analysis 71.42
Analytics 50
Corporate finance 14.28
Training 21.42
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REQUIRED COMPETENCIES
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OBSERVED COMPETENCIES
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The GAP
COMPETENCIES REQUIRED (MOST IMPORTANT) OBSERVATION (EXCELLENT)
Logical Reasoning and Problem Solving Logical Reasoning and Problem Solving Logical Reasoning and Problem Solving
Analysis of data Logical Reasoning 92.85 42.85
Attention to details 85.71 57.14
Personal Abilities Personal Abilities Personal Abilities
Communication Skills 92.85 57.14
Initiative/Enthusiasm 100 42.85
Technical Ability Technical Ability Technical Ability
Applying eco. Concepts and theories effectively 64.28 42.85
Knowledge and General Awareness Knowledge and General Awareness Knowledge and General Awareness
Economy, Business, Industry Sectors 100 71.42
Subject/Domain Knowledge 57.14 28.57
Level of Education 78.57 57.14
Institutes of learning 57.14 28.57
Social, Cultural, Political Awareness 50 28.57
Commitment to learning 85.71 42.85
Practical Aspects Practical Aspects Practical Aspects
Work Experience 78.57 35.71
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The GAP
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Employer Speak

• Syllabus is too theoretical with no practical
  relevance. Quantitative techniques are essential
  the faculty too needs training in quantitative
  skills.
• - Dr. Patil, Joint Director, Securities
  Exchange Board of India
• There is a scarcity in human resource. There is
  a need for market orientation as against the
  traditional production orientation when it comes
  to education.
• - Mr. Minoo Shroff, President, Forum of Free
  Enterprise

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Employer Speak

• There are inadequacies in the system, curriculum
  and assessment. There are rigidities or
  inflexibilities in going beyond the syllabus. The
  need is to translate knowledge to practical
  relevance.
• - Mr. S.S. Bhandare, Former Chief Economist,
  Tata Group
• Academic institutions do not provide problem
  solving assignments. Without quantitative skills
  students are at a disadvantage. Students do not
  read original texts. Many a times teachers are
  not motivated enough.
• - Dr. Rupa Rege Nitsure, Chief Economist, Bank
  of Baroda

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Attitude towards economics graduates
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Attitude towards economics graduates
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Attitude towards economics graduates
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Attitude towards economics graduates
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Academicians perspective
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Teacher Speak

• Statistics with computer orientation should be
  compulsory.
• Add on courses on current affairs should be
  introduced (can be organised by the Economics
  Club of Mumbai or/and a cluster of colleges).
• There is lack of problem solving mode or
  tutorials for core courses... problem solving
  internalises the knowledge.
• There is a need for English language training,
  you cannot write well unless you read well.
  Presentations should be a part of evaluation.

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Teacher Speak

• The system in itself is defective. You cannot
  have the current system and still talk about
  employability.
• The existing outdated reference books must be
  replaced with good international reference books
  used by leading institutions across the world at
  the earliest...
• Economics education should not be tailored to
  market demand value of the programme should be
  social scientific.

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OBSERVATIONS FROM SURVEY OF RECENT ECONOMICS
GRADUATES
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RELEVANCE OF ECONOMICS LEARNING TO REQUIRED
COMPETENCIES
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Relevance of economics learning to required
competencies
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BRIDGING THE GAP
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MEASURES TO INCREASE EMPLOYABILITY
Updating Curriculum 92.85
Use of better reference books 50
Adopt case study methodology 100
Adopt simulation based learning approach 42.85
Assignments and projects 100
Mandatory dissertation 7.14
Visiting faculty from industry 92.85
Encourage guest lectures 57.14
Improve communication skills of students 85.71
Use of technology and social media 35.71
Encourage students to keep themselves updated 78.57
Introduce group projects 21.42
Encourage discussions on economic issues 85.71
Introduce compulsory internships 50
Tie-up with industry 71.42
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INDUSTRY-ACADEMIA COLLABORATIONS TO INCREASE EMPLOYABILITY INDUSTRY-ACADEMIA COLLABORATIONS TO INCREASE EMPLOYABILITY
Creating internship opportunities 85.71
Facilitating exchange programmes among universities/colleges 42.85
Taking guest lectures at colleges 92.85
Facilitating Industrial visits 50
Working together on curriculum development 71.42
Introduction to short term courses/summer school 42.85
Carrying out teacher training 64.28
Creating entrepreneurship cells in colleges 14.28
Developing college infrastructure 78.57
Creating innovation hubs in colleges 21.42
Conducting joint research 57.14
Regular Industry-academic interaction platform 50
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Bridging the Gap

• There exists a significant competency / skill gap
• Could very well be applicable to the rest of the
  country
• Investment in higher education to improve the
  overall quality of education delivery is
  critical.
• Educational institutions have to train students
  to think like economists!
• Industry-academia partnership needs to be forged.

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