According to a recent study by Azim Premji University, 11 million out of 63 million graduates aged 20-29 in India were unemployed in 2023, while only about seven percent managed to secure permanent salaried jobs within a year of being unemployed.
Graduate unemployment stands at nearly 40 percent for those aged 15-25 and around 20 percent for the 25-29 age group. The study suggests that unemployment has risen alongside the growing size of the graduate population, with both the youth population and higher education enrolment increasing significantly in recent decades. While around 5 million graduates are added each year, only about 2.8 million find employment.
The study also notes that India has made progress in reducing gender and caste barriers in education. However, the transition from education to stable employment remains weak and uncertain. There are simply not enough jobs, and underemployment continues to be a persistent issue. The job market is becoming increasingly saturated, with limited employment opportunities available.
India has long faced the problem of brain drain due to a lack of adequate opportunities. Despite having a highly capable education system, the country struggles to fully utilise its human capital. These are not mere statistics; they are indicators of a deeper structural issue-an economy that is unable to provide sufficient opportunities for its educated population.