On a humid summer morning, a freshly minted graduate steps out of a college gate, degree folder tucked under an arm, family pride quietly swelling behind them. In their eyes rests a fond hope that an elite degree will naturally open the door to a secure, well-paying job. But weeks turn into months, and that confidence begins to fray. The calls do not come, and the rejections pile up.This is not an isolated story. It is one that many have lived or watched at close quarters. The question, then, is why do so many graduates remain unemployable? The debate often circles around vacancy numbers, treating them as the convenient culprit. Yet that explanation is increasingly inadequate. The data tells a more uncomfortable story, one that shifts the spotlight back to higher education institutions themselves.India’s higher education system is expanding at speed, but the promise it makes to students is quietly breaking somewhere between the classroom and the workplace.
When numbers grow but readiness shrinks
India has the largest youth population in the world, with nearly 65% of its people under the age of 35. On paper, this is a demographic advantage. On the ground, it tells a more troubling story. The India Skills Report 2024 found that only 51.25% of final-year students and postgraduates tested were considered employable. At the same time, the Periodic Labour Force Survey 2023 reported urban youth unemployment (ages 15–29) at 17.5%, with graduates forming the biggest share of the unemployed.
From campuses to “degree factories”
The structural reasons are now difficult to ignore. A TeamLease report titled From Degree Factories to Employability Hubs shows that nearly 75% of higher education institutions (HEIs) in India remain misaligned with industry needs. Only 8.6% are fully aligned, while more than half admit they are not aligned at all.The classroom, in many cases, continues to reward memory over mastery. The world has evolved at an unprecedented speed, but the syllabus says no to progress. With time, some skills and theories become obsolete, but our academic curricula keep teaching the same syllabus for years. Assessment systems still privilege theory-heavy answers rather than problem-solving or application. Colleges struggle to keep up with the evolving industries.
Skills missing where they matter most
The gaps become clearer when curriculum design is examined closely. Only 36% of HEIs have embedded soft skills such as communication, teamwork, and critical thinking into their programmes. Just 23% involve industry professionals in training students. Applied learning remains limited, with only one in four institutions using live projects to simulate real workplace challenges.Employers are no longer obsessed with formal degrees. In fact, candidates with qualifications below Class 10 are now the most sought after across job listings, according to a report by blue- and grey-collar recruitment platform WorkIndia.Internships, long presented as the missing link between classrooms and careers, are properly embedded in just 26% of institutions. For most students, they function as optional extras rather than carefully designed learning experiences. Meanwhile, industry-recognised certifications, now a key signal for employers, remain outside the curriculum in more than 60% of higher education institutions.
A system built on theory, not practice
This imbalance has deep roots. For decades, Indian higher education prioritised theoretical instruction over vocational and skill-based learning. According to the Ministry of Skill Development and Entrepreneurship, only 4.7% of India’s workforce has received formal vocational training, a figure starkly lower than in countries such as the United States or Germany.The outcome is visible across disciplines. Engineering graduates struggle with industry tools. Law graduates leave college without exposure to real drafting or litigation. Humanities students are academically strong but lack pathways into applied roles. The issue is not intelligence, it is relevance.
Who pays the price for the disconnect?
The immediate cost is borne by young graduates, especially postgraduates, who enter the labour market late and with high expectations. When jobs fail to materialise, many drift into the growing category of the “educated unemployed,” facing financial dependence, frustration, and mental stress.Employers also lose. Companies spend time and money retraining recruits for basic tasks, while critical roles remain unfilled. Productivity suffers. Innovation slows.At a national level, the repurcussions are serious. The World Bank and the Centre for Monitoring Indian Economy have warned that India risks a long-term crisis of underutilised educated youth. If skills continue to lag behind degrees, economic growth itself could lose momentum.
Turning degrees into pathways, not dead ends
India does not lack intent. Policies under the Skill India mission and the National Education Policy 2020 acknowledge the crisis. But reform has not matched the speed at which degrees are being produced.The question confronting higher education is no longer academic. Are institutions content with certifying learning, or are they prepared to enable livelihoods? Until HEIs move from producing degrees to building capability, the paradox will persist, crowded campuses, empty opportunities.India’s demographic dividend is still possible. But only if higher education reconnects knowledge with work, and ensures that a degree once again leads somewhere meaningful.
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