Vocational Education in Schools and Local Skill Demand: Evidence from Himachal Pradesh

Abstract

This study examines the alignment between vocational education provided in schools of Himachal Pradesh and skilled workforce required at regional level in Himachal Pradesh, a critical factor influencing youth employability. Using data of Directorate of Education, Himachal Pradesh Government on schools with vocational education and workforce demand projections data (2018–2022) taken from the National Skill Development Corporation’s Skill Gap Report (2013), the study compares the vocational trades offered in schools with sector-wise employment demand across districts of Himachal Pradesh. The findings reveal that there is minimal alignment between vocational education provided at school level and regional workforce requirements (r=-0.27). Substantial skill deficiencies are observed in construction, banking, financial services and insurance (BFSI) and transportation and logistics sectors, in contrast with private security and agriculture sectors showing an oversupply of vocational education. Stronger alignment is observed in healthcare and partially in tourism and hospitality sectors. The study highlights the need for stronger coordination between government agencies, educational institutions and industry stakeholders. It emphasises a data-driven approach to vocational education planning that integrates labour market information into curriculum design to address skill mismatches and to improve youth employability.