analyses the linkages between higher education and labour markets in India in the context of recent developments. Various sections in this paper have been organized as follows – anoverview of recent developments; review of the higher education and training sector in India bringing out its salient characteristics; labour market, its structure and trends particularly as theyrelate to qualified people; new employment opportunities and perceived skill shortages; andfinally evolving an action plan for better alignment of growth in higher education with changinglabour market conditions in the country.
To set the context, this paper outlines recent developments to improve understanding of thelinkages of higher education / training with the labour markets. These developments relate to thechanging occupational structure in the knowledge economy; different ways in which higher education relates to work at the individual level; clearing of demand and supply in higher education and labour markets. Experiences of the a few countries / regions and their concernsrelating to higher education and labour market have been stated to set the overall context bringing out similarities and the differences amongst them.Changing occupational structure: Accompanied with growth and development, there has been achange in occupational structure resulting in better division of labour and shifting from manual attimes hazardous occupations to intellectual work. This transformation is the outcome of changing nature of work impacted by computerization. The end result is the emergence of aglobal occupational structure with an increasingly integrated labour market.Change in nature of work: While much of the technical change during the early nineteenthcentury has been skill-replacing, the twentieth century is marked by skill-biased technicalchange. Rapid increase in the supply of skilled workers has induced the development of skillcomplementary technologies. The skill-biased technical change has altered work-environment. Ithas transformed the nature of work and its content. The changes are at individual as well asorganizational level and this impacts employment structures and labour markets.At the individual level, there are two undeniable trends: the decrease of workers in industrial andmanual jobs and a rise in tertiary employment. Tertiary employment requires large number of people who do intellectual work. Work content of jobs has changed leading to new demands in