Eleven million of India’s 63 million graduates aged 20–29 are unemployed, and only a small proportion secure permanent salaried roles within a year, according to the latest State of Working India report by Azim Premji University.

The report states that about 7% of graduates who report themselves unemployed obtain permanent salaried employment within a year. Graduate unemployment stands at nearly 40% among those aged 15–25 and 20% in the 25–29 age group.

Researchers attribute the situation to the rapid expansion of the youth population and rising tertiary enrolment, which have increased the absolute number of degree-holders without a corresponding rise in employment opportunities. As of 2023, this has resulted in 11 million unemployed graduates in the 20–29 age bracket.

While India has narrowed several historic education gaps since Independence — including improved gross enrolment ratios and reduced gender and caste barriers — the transition from education to employment remains weak. The report notes persistent unemployment among young graduates, uneven access to education, and uncertain school-to-work pathways that often do not lead to stable or adequately paid work.

Participation in education among young men declined from 38% in 2017 to 34% in late 2024. A growing proportion cited the need to support household income as the reason for leaving education, rising from 58% in 2017 to 72% in 2023.

Between 2004–05 and 2023, around 5 million graduates were added annually, but only 2.8 million found employment each year, with fewer entering salaried roles. This imbalance has contributed to rising graduate unemployment and slower earnings growth.

The report notes that graduates earn about twice as much as non-graduates at labour market entry, with the gap widening over time. However, earnings growth for young male graduates has slowed, reducing the earnings premium. Gender gaps in graduate earnings have narrowed, indicating improved outcomes for young women.

Inputs from PTI

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