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International Youth Day 2026: Do Indian employers want a degree or skills? Increasingly, the answer is both—but the degree is only the starting point.
The youth need adaptability and a willingness to learn. (AI Image)
India’s fresher job market presents a paradox: opportunities are growing, but so is the gap between what graduates know and what employers need. According to a TeamLease Degree Apprenticeship study, India’s skills gap stood at around 30–32 million in FY2025 and is expected to rise to 47–49 million by FY2027. A major reason for this widening gap is the lack of employability skills.
The study identifies lack of employability as a key reason behind the widening gap, with sectors including automobile, healthcare, real estate, pharma, textiles and construction expected to be significantly affected. Emerging sectors such as renewable energy, semiconductors, electronics manufacturing and electric vehicles could face a manpower shortage of around 2 million over two years.
Yet, demand for freshers is not disappearing. Naukri JobSpeak data shows fresher hiring grew 17% year-on-year in February 2026 and 16% in March, signalling stronger demand for entry-level talent. Hiring momentum continued through the quarter, even as employers became more focused on candidates who can contribute from day one.
The changing nature of jobs is equally important. The data also highlighted strong growth in AI/ML hiring, reflecting how quickly employers’ skill requirements are evolving.
Do Indian employers want a degree or skills?
The answer is both – but the degree is only the starting point. While a qualification can establish academic credibility and help a candidate clear an initial screening, employers increasingly need proof that a fresher can apply knowledge in a real workplace. Communication, problem-solving, digital fluency, adaptability and practical experience are becoming critical differentiators.
For students, internships, apprenticeships, live projects and industry certifications can help bridge the classroom-to-workplace gap. A degree may establish eligibility, but demonstrable skills establish employability.
Now is the time for Gen Z to step beyond their smartphones and laptops and develop their soft skills into superpowers, making them a good team leader, an excellent communicator, and a skilled problem solver.
AI is eliminating all “routine” tasks. So, the only value now is in what machines can’t do—thinking deeply and solving new problems. Students need analytical skills – the question isn’t ‘what happened?’, but ‘why did it happen?’ and ‘what can we do better next time?’. The ability to answer these tough questions is what sets one apart from the crowd.
They also need adaptability and a willingness to learn. One technology may be in vogue today, another tomorrow. Employees who are lifelong learners are free from the fear of being fired. Finding a mentor to learn and improve from and fearlessly accepting constructive criticism.
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August 12, 2026, 3:01 PM IST
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