India is producing millions of graduates, but where are the jobs?

India churns out millions of graduates annually, yet job creation has lagged behind, leaving many young professionals unemployed or underemployed. Vivek Kumar Jaiswal, a master's graduate in Hindi, exemplifies this struggle, finding only low-paying call center or data entry jobs after three years of education. His situation mirrors that of his two siblings, who depend on their father's autorickshaw income. This frustration is widespread among young Indians entering the workforce.

India's rapid economic growth and expansion of higher education have not translated into a proportional increase in graduate employment. According to a report by Azim Premji University, India produced about 5 million graduates per year between 2004 and 2023, but graduate employment only rose by around 2.8 million annually. Nearly 40% of graduates aged 25 and below remain unemployed, compared to 20% of those aged 25 to 29.

The mismatch between graduates' skills and employers' needs is a growing concern. Economist Rosa Abraham notes that many young Indians end up in low-paying, informal, or irregular work, or even transition into agriculture, a reversal of the expected structural transformation. The government has launched internship and apprenticeship programs, but these efforts have yet to meet the scale required to address the problem.

Artificial intelligence is further complicating the job market, reshaping entry-level roles and making it difficult for recent graduates to find positions that match their university training. Engineering graduate Shubh Kansara faced this challenge, taking over a year to secure a job outside his field after graduating. His parents had invested heavily in his education, expecting it to lead to better opportunities, but the reality is that a degree alone may not guarantee employment.

The issue of youth unemployment has become a political issue as well. Congress president Mallikarjun Kharge criticized Prime Minister Narendra Modi's government for failing to provide pathways from education to employment, accusing it of "ravaging" this pathway. As workplace requirements evolve, young Indians may find that their university degrees do not fully prepare them for the skills demanded by employers, highlighting a critical disconnect in India's education system and job market.