Graduate Unemployment Crisis: 11 Million Jobless, Says Azim Premji University Report

Of the 63 million youths aged between 20 and 29 years, 11 million are unemployed. The worrying trend is that only 7% of the unemployed gain a permanent employment contract within a year of their unemployment. The situation has been worsening over the years due to an increase in the number of people graduating.

According to the report "State of Work in India - 2026" released by Azim Premji University, there has been a significant increase in access to higher education for youth (15-29 years) in the country. However, employment-related challenges persist. The unemployment rate among graduates remains high. The unemployment rate among graduates aged 15 to 25 is approximately 40%, and among those aged 25 to 29, it is 20%. The report states that graduates enjoy an income advantage, with starting earnings nearly double those of non-graduates. Despite this, the wage growth rate for young male graduates has slowed since 2011. Professor Rosa Abraham, lead author of the report, said, "This study reflects the transitions and changes in the journey of young people from education to employment."

In the last 40 years, the enrollment of students in higher education has been 28%. The number of women has been increasing, while that of men has been decreasing, from 38% in 2017 to 34% by the end of 2024. This is mainly due to the men trying to find jobs to feed their families. The number of higher learning institutions has been increasing as well. The number of colleges per lakh youth increased from 29 in 2010 to 45 in 2021, with private institutions playing a major role in this.

According to the report, participation of poor families in higher education has increased, from 8% in 2007 to 15% in 2017. However, economic barriers remain. Students from relatively affluent backgrounds have a higher participation rate in expensive professional courses such as engineering and medicine. Youth are increasingly moving away from agriculture towards the service and manufacturing sectors. The report also states that the number of Industrial Training Institutes (ITIs) has increased by nearly 300% since 2010. Furthermore, concerns have emerged about the quality of private institutions.