It is another serious problem that is seriously affecting the labour market and has a more serious implications in larger economies like India as the geographical outreach for skills is uneven:

The states with much higher economic growth have more new jobs with lower rate of labour-force and vice versa. Thus, these states need to rely on migrant workers to cope up with this market demand.

Majority of formal institutions are in urban areas compared to rural areas. Also, the private sectors are also reluctant to operate in rural areas. Hence, the large proportion of the youth population does not have any formal vocational training or development accessibility.

Districts that are economically backward have major paucity in formal skill and training as training institutions emphasizing on the job-ready and livelihood skills are usually provided by the social development programs. Therefore, these skills are not assessed or not recognized for employment.