A new Niti Aayog report has raised serious concerns about graduate unemployment in India. It shows that joblessness among graduates is four times higher than the national average. While the overall unemployment rate is 3.2 per cent, 13 per cent of all graduates and over 20 per cent of women graduates are without work. Even more worrying, only about 8 per cent of graduates find jobs that match their qualifications.
The report, Reimagining Skilling for Viksit Bharat@2047, says many young people enter the labour market without practical, job ready skills. Communication, problem solving, and role specific abilities are often missing. In 2021, nearly 8.7 crore youth aged 15–29 were not in education, employment, or training (NEET).
Surveys show that 80 per cent of higher education students feel they lack industry exposure, and almost half of formal workers say the absence of internships or prior work experience makes it hard to find jobs. Many students pursue generic degrees such as BA, BCom, or BSc mainly to qualify for government jobs.
Between late 2024 and mid 2025, 1.86 crore applications were submitted for just 55,000 government posts.
Salary data highlights the gap. Graduates without skilling earn about Rs 22,000 a month, while those with added skills earn closer to Rs 29,000. Yet, awareness of these differences, as well as government schemes and apprenticeships, remains low. Curricula are often outdated, overly theoretical, and weakly linked to workplace needs. Students also lack support in CV writing, interview preparation, and structured job searches.
The report recommends starting skill education early, from Class VI, with subjects covering communication, digital basics, financial literacy, teamwork and entrepreneurship. It also suggests vocational schools in every district from Class IX onwards, teaching trades in partnership with industry.
Experts agree the recommendations are important but warn that skills must be constantly updated as industry needs change. Without stronger industry academia collaboration, apprenticeships, and practical exposure, India’s graduates will continue to struggle in the job market.