employability of economics graduates – bridging the gap! g. s. panikar, satheesh menon, jose...

Employability of Economics Graduates – Bridging the gap!

G. S. Panikar, Satheesh Menon, Jose Augustine, Rajam Rajagopalan

The Economics Club, Mumbai

DEE Conference 2011

THE ECONOMICS CLUB, MUMBAI

The Road Ahead…

• Background

• Research objectives

• Research Methodology

• Survey of Employers

• Academicians’ perspective

• Survey of Recent Economics Graduates

• Bridging the gap


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


Background…

• India has one of the world’s 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!


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?


OBJECTIVES OF THE STUDY


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


RESEARCH METHODOLOGY


• METHODOLOGY: Mix of Qualitative & Quantitative Research

• RESEARCH TOOLS: Interviews and Focus group discussion

• MARKET: Mumbai

• RESPONDENTS:

Employers

Academicians

Recent economics graduates who are employed


• SAMPLE SPREAD

– Interviews:

• 14 interviews with Employers

• 6 interviews with Academicians

• 20 interviews with recent economics graduates

– One Focus Group Discussion with Employers


OBSERVATIONS FROM THE EMPLOYER SURVEY


SECTORS COVERED UNDER THE STUDYSECTORS 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


Key tasks performed by economics graduates

ACTIVITIES OF ECONOMICS GRADUATES IN THE ORGANISATION (%)ACTIVITIES OF ECONOMICS GRADUATES IN THE ORGANISATION (%)Data Collection 57.14Research 100Policy Making 35.71Statistical / Mathematical Analysis 71.42Analytics 50Corporate finance 14.28Training 21.42


REQUIRED REQUIRED COMPETENCIESCOMPETENCIES


OBSERVED OBSERVED COMPETENCIESCOMPETENCIES


The GAP…COMPETENCIES REQUIRED

(MOST IMPORTANT) %OBSERVATION(EXCELLENT) %

Logical Reasoning and Problem Solving

Analysis of data & Logical Reasoning 92.85 42.85

Attention to details 85.71 57.14

Personal Abilities

Communication Skills 92.85 57.14

Initiative/Enthusiasm 100 42.85

Technical Ability

Applying eco. Concepts and theories effectively 64.28 42.85

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

Work Experience 78.57 35.71


The GAP


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


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


Attitude towards economics graduates


ACADEMICIANS’ PERSPECTIVE


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.”


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.”


OBSERVATIONS FROM SURVEY OF RECENT ECONOMICS GRADUATES


RELEVANCE OF RELEVANCE OF ECONOMICS ECONOMICS

LEARNING TO LEARNING TO REQUIRED REQUIRED

COMPETENCIESCOMPETENCIES


Relevance of economics learning to required competencies


BRIDGING THE GAP


MEASURES TO INCREASE EMPLOYABILITYMEASURES 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


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


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.


THE ECONOMICS CLUB, MUMBAICreating leaders in economics!

www.economicsclubmumbai.org

employability of economics graduates – bridging the gap! g. s. panikar, satheesh menon, jose...

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