Written by Part 1: The Problem – Educated Yet Unemployed
India has a youthful population, which means more than 50% of the population is under 30 years of age. Each year, students graduate from universities by the millions with a degree, and they are hopeful about their future. Yet a huge number of these educated youth end up unemployed or underemployed. ‘Educated unemployment’ is no longer just a term; it has become a bitter reality for a generation that was led to believe education would lend them credibility.
This crisis of educated unemployment stems from a paradox: while levels of education are rising, the employment opportunities have not kept pace. The Centre for Monitoring Indian Economy (CMIE) has repeatedly said that educated unemployment is highest among graduates. Reports have shown that the average national unemployment rate is around 7-8%. However, if you look at the number of educated youth, it is more than double that, especially for youth between 20 to 29. The situation is even worse in rural areas, where, even for those with professional degrees, the lack of relevant job vacancies and the sheer number of applicants is extremely concerning.
One of the major reasons for this is the mismatch between academic qualifications and employable skills. Colleges and universities tend to emphasize theory over practice and an understanding of technical skills that students need today to be successful in the workforce. Many graduates, especially those from the arts, commerce, and even some engineering programs, find they cannot join the workforce because they do not feel ready. Employers state, fresh graduates do not know how to effectively communicate, solve problems, and often do not know how to even use technology.
In today’s job market, many institutions have outdated curricula. The job market has changed significantly with the introduction of new technologies such as Artificial Intelligence, Data Analytics, Cloud Computing, and Cyber Security. Conversely, most colleges are still teaching outdated programming languages, outdated management practices, and irrelevant case studies. For graduates to succeed, the significance of these differences means that a degree will have little impact.
India also suffers from a quantity-over-quality problem. The rapid rise of private colleges and universities has led to a dilution in the standard of education. In their rush to cash in on the growing demand, many institutions compromise on infrastructure, faculty quality, and placement support. Students graduate without adequate exposure to industry standards, internships, or project-based learning. This results in a scenario where degrees become a formality rather than a true measure of competency.
A cultural and systemic issue that adds to the problem is the overdependence on government jobs. Government positions are still seen as the most secure and prestigious form of employment. As a result, lakhs of graduates spend years preparing for competitive exams with no guarantee of success. The demand far outstrips the supply, leading to intense competition and widespread frustration. For example, a single clerical government job often sees more than 50,000 applicants, many of them postgraduates and even PhD holders.
The urban-rural divide further widens the employment gap. Students from rural backgrounds, despite being qualified, often lack access to digital tools, career guidance, and exposure to English or industry-standard training. They are at a disadvantage when competing for jobs with their urban counterparts who benefit from better coaching, networking, and internship opportunities.
Another disturbing trend is the rise in underemployment. Many educated youth are forced to take up jobs that do not match their qualifications or pay scales. A mechanical engineer working in a call center, or a commerce graduate doing data entry work, is not an uncommon sight. Such employment may reduce the unemployment figures on paper, but it fails to provide dignity, satisfaction, or professional growth to individuals.
The problem also has a psychological and emotional dimension. Young people who invest years in education, often at great financial cost, find themselves without a return on their investment. This leads to anxiety, loss of self-confidence, depression, and even a sense of failure. Families also feel the burden, having spent their savings with the expectation of a better future. Societal pressure adds to the weight, as unemployed graduates face constant questioning and judgment.
Adding to the chaos is the lack of career counselling and informed decision-making. Many students choose courses based on parental pressure or popular trends without understanding the scope or their aptitude. As a result, we have a flood of graduates in oversaturated fields like engineering or B.Com, with very few pursuing niche or emerging sectors like environmental science, ethical hacking, or design thinking.
Lastly, the lack of industry-academia collaboration means that students are unaware of the real-world expectations. Unlike countries where companies regularly interact with colleges through internships, lectures, and sponsored projects, India’s academic system remains largely isolated. The gap between classroom learning and workplace demands continues to widen.
In conclusion, the problem of unemployment among educated youth is a ticking time bomb. It is not just an economic issue but a social and emotional one that affects millions of families. If left unaddressed, it can lead to widespread disillusionment, brain drain, and a generation that loses faith in the very system meant to empower them. The second part of this article will explore the possible solutions and policy reforms that can help reverse this trend and truly empower India’s youth.
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