Graduate unemployment stands at a stark 13 per cent overall and reaches 20.4 per cent among female degree holders, compared to the national average of 3.2 per cent.
Only 8.25 per cent of Indian degree holders secure jobs matching their educational backgrounds, with over 90 per cent working in completely unrelated fields.
NITI Aayog recommended restructuring conventional courses into specialised, industry-aligned degrees like B.A. Hospitality and B.Com. Analytics.
NITI Aayog Flags Job Crisis In Generic Degrees, Calls for Structural Reforms In Higher Education
Only 8.25 per cent of Indian degree holders secure jobs matching their educational backgrounds, with over 90 per cent working in completely unrelated fields.
Summary
Millions of Indian students are pursuing generic undergraduate degrees that offer limited employment prospects, creating severe structural imbalances across degree colleges, polytechnics and industrial training institutes. Last week, NITI Aayog released a report titled 'Reimagining Skilling for Viksit Bharat' highlighting this widespread academic mismatch.
The apex public policy think tank stated that of the 34 million learners registered in undergraduate programmes nationwide, 11.3 million chose a Bachelor of Arts alone. Total registrations for BA, BSc and BCom degrees surpass 20 million.
"Compounding this is the overwhelming inclination toward generic degree programmes with weak job linkages," the NITI Aayog report stated.
Educated Unemployment Crisis
Graduate unemployment remains starkly elevated compared with the broader population. The report stated that joblessness affects 13 per cent of degree holders and 20.4 per cent of female graduates, which is significantly higher than the country's overall 3.2 per cent unemployment figure.
According to the Economic Survey 2024–25, as cited by the think tank, just 8.25 per cent of degree holders secure positions matching their educational background. Overall, the think tank stated that over 90 per cent of graduates work in roles unrelated to their studies.
Students primarily chase these conventional degrees to qualify for state employment. From November 2024 through July 2025, job seekers filed 18.6 million applications for only 55,000 state vacancies.
Reforming Generic Degrees
To address these shortfalls, NITI Aayog recommended transitioning from generic degree pathways toward specialised, job-linked programmes. The report called for restructuring high-enrolment degrees into industry-aligned courses through applied specialisations, suggesting options such as B.A. Hospitality, B.Com. Analytics and B.Sc. Applied Technology.
The think tank urged institutions to significantly scale work-integrated and Apprenticeship Embedded Degree Programmes (AEDP). Limited adoption of these frameworks currently restricts the ability of students to graduate with demonstrable work experience.
Policymakers also suggested adopting flexible delivery formats to help students combine learning with work. These models include modular, part-time, hybrid and earn-while-you-learn structures.
Industry-Led PPP Models
"India’s higher and technical education system faces a fundamental disconnect between what is taught and what the labour market demands," the NITI Aayog report stated. Outdated academic frameworks frequently yield degrees, diplomas and certificates that fail to translate into actual employability.
Advertisement
The report recommended driving industry-led skilling initiatives through structured Public-Private Partnership (PPP) models. This strategy aims to modernise outdated curricula, embed job-linked learning directly into syllabi and secure broader private sector engagement to ensure skilling remains connected to real employment outcomes.
Future educational reforms will focus on creating specialised, job-linked programmes targeted at high-growth economic sectors. These include tailored training for green industries and the electric vehicle manufacturing ecosystem.
Published At: