For decades, India has faced the same challenge: a large share of its educated youth cannot find work. Despite more young people gaining access to higher education, nearly 40 per cent of graduates between the ages of 15 and 25 remain unemployed. The problem does not ease much with age—about one in five graduates aged 25 to 29 are also without jobs.
The latest ‘State of Working India 2026’ report from Azim Premji University shows how stubborn this issue has been over the past 40 years. As of 2023, 11 million out of 63 million graduates aged 20 to 29 were unemployed. The report highlights a clear gap between education and employability: degrees are not translating into stable work.
Even for those who do find jobs, the opportunities are often limited. Only around seven per cent of graduates manage to secure permanent salaried positions within a year of reporting themselves as unemployed. This means most young people either remain jobless or end up in temporary or unstable work.
The findings raise serious concerns about India’s ability to fully benefit from its demographic advantage. With such a large youth population, the country has the potential to drive economic growth. But unless education leads to meaningful employment, that potential risks being wasted.
In short, while India has made progress in expanding higher education, the job market has not kept pace. The mismatch between skills and opportunities continues to leave millions of young graduates struggling to find secure work.