Source : INDIA TODAY NEWS
A significant proportion of India’s educated youth continues to struggle in the job market, with nearly 40% of young graduates unable to secure employment, according to the latest State of Working India 2026 report released by Azim Premji University.
The findings highlight a persistent disconnect between rising educational attainment and meaningful job opportunities.
The report underscores that graduate unemployment has remained stubbornly high for decades. Among individuals aged 15 to 25, close to 40% are without jobs, while the figure stands at around 20% for those between 25 and 29 years.
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What is particularly concerning is the long-term trend. Despite a steady increase in the number of degree holders, unemployment rates among graduates have hovered between 35% and 40% from as far back as 1983 through 2023, indicating a structural issue rather than a temporary slowdown.
STABLE JOBS STILL OUT OF REACH FOR MOST
Even for those who do find work, job stability remains a major concern. The report reveals that while nearly half of young male graduates are able to secure some form of employment within a year, only a small fraction land secure, long-term roles.
In fact, just about 7% of graduates manage to obtain permanent salaried positions within a year, pointing to a labour market dominated by informal or short-term opportunities rather than stable careers.
DEMOGRAPHIC DIVIDEND AT RISK
India’s much-discussed demographic advantage is now at a critical juncture. With an estimated 367 million people in the 15–29 age group, the country is nearing the peak of its working-age population.
However, this window may not remain open for long. The report warns that the proportion of working-age individuals is expected to start declining after 2030. This makes job creation an urgent priority, as the ability to absorb a large, educated workforce will determine whether India can convert its demographic potential into sustained economic growth.
ECONOMIC PRESSURES IMPACTING EDUCATION CHOICES
Financial constraints are increasingly shaping education and employment decisions among youth. The share of young men enrolled in education has dropped from 38% in 2017 to 34% by late 2024.
At the same time, more young individuals are stepping away from studies to support their families. The proportion of young men citing financial necessity as a reason for leaving education has risen sharply from 58% in 2017 to 72% in 2023.
Post-pandemic employment trends also reveal a shift in the nature of jobs being created. While overall employment has grown, a large portion of this increase has been concentrated in agriculture.
Out of 83 million jobs added between 2021–22 and 2023–24, nearly 40 million were in the agricultural sector. This marks a reversal of earlier patterns where workers were gradually moving towards manufacturing and services, raising concerns about the quality and productivity of employment.
Overall, the report paints a worrying picture of an economy where higher education does not necessarily translate into better employment prospects. With limited time left to capitalise on its demographic advantage, the need for quality job creation has never been more pressing.
– Ends
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SOURCE :- TIMES OF INDIA
