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A recent NITI Aayog report points out that although the number of students pursuing higher education in India has grown rapidly, the job market has not expanded at the same pace.
Nearly 80 per cent of students lack practical knowledge and industry exposure. (Representative image)
According to NITI Aayog’s Reimagining Skilling for Viksit Bharat@2047 report, only 8.25 per cent of graduates were able to secure jobs matching their qualifications in one year. This means that more than 91 per cent of graduates were either unemployed or working in jobs below their educational level. This raises an important question: Why are educated young people struggling to find suitable employment even after completing their studies?
The report points out that although the number of students pursuing higher education in India has grown rapidly, the job market has not expanded at the same pace. At present, around 3.4 crores students in India are enrolled in undergraduate courses. More than 1.3 crore of them are pursuing BA degrees alone. If BA, BSc and BCom students are considered together, the number exceeds 2 crores.
The bigger concern is that these traditionally popular degrees are increasingly disconnected from the skills and requirements of today’s job market.
The report’s findings on students’ challenges are particularly concerning. Nearly 80 per cent of students said they lacked practical knowledge and industry exposure. While they were familiar with textbooks and theoretical concepts, they often had little understanding of how those concepts were applied in the workplace. Around 34 per cent identified a skills gap as their biggest challenge, while 18 per cent said they did not even know how to prepare effectively for job interviews.
When opportunities in the private sector become difficult to access because of skill gaps, many young people turn toward government jobs. However, competition in this sector is extremely intense.
According to reports, between November 2024 and July 2025, more than 1.86 crore applications were received for just 55,000 government positions. This means that thousands of candidates were competing for every available position. The figures highlight how difficult—and risky—it can be for young people to depend entirely on government employment.
What Is the Solution?
The problem is becoming increasingly clear, and so is the way forward. A formal BA, BCom or BSc degree alone is no longer enough to guarantee employment. Along with academic qualifications, students need to develop skills that match the demands of the modern workplace.
Unless the education system becomes more closely aligned with industry requirements, simply producing more graduates will not solve the unemployment problem. The focus now needs to shift from earning degrees alone to developing practical, job-ready skills. For India’s young population, becoming employable will require not just academic knowledge, but the ability to apply that knowledge in the real world. This includes digital skills, internships, projects and hands-on training during college which can help students understand how the industry actually works.
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August 24, 2026, 10:06 IST
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