In India, getting a good job after completing a college degree is becoming a major challenge for the youth. A degree that was once considered a path to a better future and financial security no longer guarantees employment. According to Azim Premji University’s ‘State of Working India 2026’ report, nearly one in five young graduates between the ages of 25 and 29 are unemployed. At the same time, the unemployment rate among graduate youth aged 15 to 25 is around 40%.
According to the report, between 2004-05 and 2023, about 50 lakh graduates grew every year, but only 28 lakh of them could find employment. That is, as fast as the number of young people getting degrees has increased, the number of jobs has not increased as fast. This is the reason why a large number of young people are looking for employment even after completing their studies.
Why don’t you get job even after degree?
The main reason for this is the lack of coordination between education and job requirements. Colleges are earning degrees, but many young people lack the practical skills and experience needed for jobs. Another problem is that higher education has expanded faster than employment opportunities. A report by Azim Premji University shows that despite the increase in the number of young graduates, there are limited permanent salaried jobs for them. According to the report, graduates earn nearly twice as much at entry level as non-graduates, and this gap increases with career. That is, a degree has financial benefits, but not every graduate benefits from it.
Why are the youth running after government jobs?
Low pay, job insecurity and lack of better facilities in the private sector also push the youth towards government jobs. In a government job one gets regular salary, pension related facilities, health insurance, holidays and social prestige. In comparison, many private jobs carry low pay and fear of job loss.
As reported by The Wall Street Journal (WSJ), in many recruitments for government jobs, the selection rate remains less than 1%. Yet lakhs of youngsters prepare for competitive exams for years. 26-year-old Akshay Tomar from Meerut is an example. He has appeared in 15 exams so far, but has not made it to the final stage of any of them. His brother has finally opted for a private job with less pay and less security. The leak of NEET papers has also increased the youth’s distrust of the system. They feel that despite working hard they are not getting a chance for fair competition.
Jobs increase, but lack of good jobs
A look at the employment figures reveals another aspect of the picture. According to a report by Azim Premji University, 8.3 crore jobs have increased between 2021-22 and 2023-24 in the country after the Corona epidemic. But 4 crore of these jobs were created in the agriculture sector. That means almost half of the total new jobs were in agriculture.
Women’s employment also increased during this period. The number of women in new employment in agriculture sector was about 3.8 crore. Compared to 2017, the number of self-employed women has almost quadrupled. However, there was no significant increase in self-employment earnings of women and earnings of both men and women in salaried jobs.
Colleges rise, questions on quality of education
Higher education has expanded in the country. According to Azim Premji University, there were 29 colleges for every one lakh youth in 2010, which has increased to 45 in 2021. But as the number of colleges increased, the number of teachers did not increase in the same proportion.
According to All India Council for Technical Education (AICTE) norms, there should be 15 to 20 students per teacher. While private colleges have an average of 28 students and government colleges have an average of 47 students per teacher. This can affect the quality of education and the personalized training students receive.
The number of Industrial Training Institutes (ITIs) has also increased by nearly 300% since 2010. But the quality of training has gone down, especially in private institutions. According to the report, there is no clear correlation between the presence of ITIs and the number of manufacturing companies nearby. It means there is no guarantee of getting a job after training.
Diminishing options and growing anxieties before youth
The impact of this crisis is not limited to jobs. According to the report, there are about 36.7 crore youth in the age group of 15 to 29 years in India. They make up about one-third of the country’s working-age population. Out of these 26.3 crore youth are currently not engaged in studies and fall under the category of potential workers.
After 2030, India’s working age share will begin to decline. In such a situation, it will become more important to employ the youth in the coming years. According to the report, youths are moving from one state to another for better employment. Low-income states with high youth populations are providing workers, while outbound youth are working in high-income states.
According to a NITI Aayog report, 1.86 crore applications were received for only 55 thousand posts between November 2024 and July 2025. This shows the extent of competition among youth for government jobs. The question is, when the youth are studying, the number of colleges is increasing and the country has such a large population of youth, then why are they not getting employment? The answer lies not only in the skills of the youth, but also in the education system, the needs of industries and the economic capacity to generate employment.
The challenge facing India is not just to create more jobs, but to create jobs that offer good pay, stability and advancement opportunities to the youth. Only then the youth population of the country will become an economic force.
