Are Apprentices The New Favourite of Companies?

Around 32% of companies have been considering an apprenticeship as an option to even out the scarcity of workforce they are facing due to the reverse migration caused by the pandemic. Also, about 25% of companies have started to employ apprentices in order to comply with the increased demand for products, as well as services, amidst the pandemic.

According to the National Employability through Apprenticeship Programme’s (NETAP) report, 46% of employers are eager to expand their apprentice circle between July and December 2020 in comparison to 41% during the second half of 2019.

There has also been a surge amidst apprentice jobs for optimising the manpower cost at the primary level. The sectors where apprentices are anticipated to be in demand include:

1. Healthcare & pharmaceuticals (42%)
2. Manufacturing & engineering (40%)
3. Retail (38%)
4. E-commerce (38%)

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The word ‘apprenticeship’ is nothing but a skill development programme wherein a firm engages an employee as a trainee for learning a profession or trade in exchange for employment for a fixed tenure. An apprentice will also learn work culture, soft skills, organisational behaviour, and ethics during the training period. A firm is allowed to hire up to 15% of the firm’s total strength as apprentices. The estimated count of apprentices in India is close to 65,000.

The initial months of the nationwide lockdown witnessed a major dip in hiring; however, the hiring numbers have bounced back subsequently during the months of June and July. Many employers are looking at an apprenticeship as a solution for creating a highly skilled and productive workforce.

From a category point of view, the proportion of increased hiring is 31%, 16%, and 22% for trade, graduate, and technician apprentices, respectively.

For any clarifications/feedback on the topic, please contact the writer at

bhavana.pn@cleartax.in