When Skills Don’t Translate to Jobs
Dr. Noour Ali Zehgeer
India stands at a pivotal crossroads. With one of the world’s youngest populations—over 600 million people under 25—the country has the potential to drive global economic growth. Yet, it grapples with a paradox: millions of educated and skilled youth remain unemployed or underemployed. The India Employment Report 2024, published by the International Labour Organization (ILO) and the Institute for Human Development, reveals a stark reality: youth account for 83% of India’s unemployed population, with the proportion of unemployed graduates nearly doubling over the past two decades. This is not just an unemployment crisis; it’s a crisis of unemployability, where education fails to meet the demands of a rapidly evolving job market.
A Crisis Rooted in Mismatch
The disconnect between India’s education system and industry needs is glaring. The Economic Survey 2023–24 estimates that nearly 50% of Indian graduates are either jobless or stuck in jobs that don’t utilize their skills. For example, engineering graduates, once celebrated as the backbone of India’s IT boom, now face dwindling job prospects. A 2023 study by Aspiring Minds found that only 7% of engineering graduates in India are employable in core engineering roles due to outdated curricula and a lack of practical training. Graduates from tier-2 and tier-3 colleges often lack proficiency in coding, problem-solving, or even basic communication skills—competencies that tech giants like Infosys and TCS demand.
This mismatch extends beyond technical fields. Take the case of Priya, a 23-year-old commerce graduate from a small town in Uttar Pradesh. Armed with a degree, she applied for jobs in banking and retail but was repeatedly rejected for lacking digital literacy and soft skills. Her story reflects a broader trend: the India Employment Report 2024 notes that 75% of Indian youth struggle with basic digital tasks like drafting professional emails or using spreadsheets, while 90% lack advanced digital literacy. In a world increasingly driven by automation and artificial intelligence (AI), these gaps are a recipe for exclusion.
The Formal-Informal Divide
The Employees’ Provident Fund Organisation (EPFO), with over 7 crore members, offers a window into India’s formal employment landscape. Recent data shows that most new EPFO subscribers are aged 18–25, with a significant chunk from the 18–21 bracket. This suggests that young workers are entering the workforce, but often into low-paying, unstable jobs. For instance, many join as contractual workers in manufacturing or retail, earning as little as ₹10,000–₹15,000 per month with no job security or benefits. The EPFO’s post-pandemic recovery indicates a rise in formal hiring, but the quality of these jobs remains a concern. A 2024 report by the Centre for Monitoring Indian Economy (CMIE) highlights that 90% of India’s workforce remains informally employed, lacking contracts, benefits, or social protections.
The gig economy, often hailed as a solution, offers limited respite. Consider Ravi, a 26-year-old from Bengaluru who works as a food delivery rider for a platform like Zomato. While the job provides flexibility, his earnings fluctuate, and he has no access to health insurance or retirement benefits. Such roles, while vital, trap workers in a cycle of precarity, with little room for skill development or career progression.
The Digital Divide and Automation’s Threat
The global job market is undergoing a seismic shift. The World Economic Forum’s *Future of Jobs Report 2025* predicts that by 2030, India will see 70 million new jobs created in emerging sectors like green energy, AI, and healthcare. However, 92 million existing jobs—8% of total employment—face displacement due to automation. For example, roles in customer service and data entry, once entry points for graduates, are increasingly automated by AI tools like chatbots and robotic process automation (RPA). This leaves India with a net job growth of just 3%, underscoring the need for rapid reskilling.
Yet, India’s workforce is ill-prepared. The India Employment Report 2024 reveals that 60% of youth cannot perform basic computer functions, a critical barrier in a job market where digital fluency is non-negotiable. For instance, a 2023 survey by the National Skill Development Corporation (NSDC) found that only 10% of ITI graduates were proficient in industry-relevant software like AutoCAD or Python. Without urgent intervention, India’s demographic dividend risks becoming a demographic liability.
Systemic Failures and Solutions
To bridge this gap, India needs bold, structural reforms:
1. Align Education with Industry Needs: Universities must collaborate with industries to design curricula that reflect real-world demands. For example, IIT Delhi’s partnership with Microsoft to offer AI-focused courses has produced graduates who are immediately employable in tech roles. Such models should be scaled to tier-2 and tier-3 institutions, with mandatory internships and industry certifications.
2. Revolutionize Vocational Training: Vocational institutes like ITIs must integrate cutting-edge skills like data analytics, cloud computing, and soft skills into their programs. The NSDC’s Skill India initiative, which trained 1.4 crore youth between 2015 and 2023, is a step forward but needs to prioritize emerging technologies. Setting up Tinker Labs and incubation centers in every district, as seen in Tamil Nadu’s Naan Mudhalvan scheme, can foster hands-on learning.
3. Establish an Indian Education Service (IES): India needs a dedicated cadre of education professionals, akin to the Indian Administrative Service (IAS), to overhaul its education system. These experts, drawn from academia and industry, could ensure that curricula are future-ready and aligned with national priorities. Singapore’s education system, which integrates industry feedback into its polytechnics, offers a blueprint.
4. Globalize Skill Development: Programs like Link4Skills, piloted with the European Union, assess and certify Indian workers for global markets. Expanding such initiatives, along with foreign language training and migration-friendly certifications, could make Indian youth competitive in countries like Germany, which faces a shortage of skilled workers. For example, Germany’s 2023 immigration reforms opened opportunities for Indian nurses and IT professionals, but language barriers remain a hurdle.
5. Empower Women and Rural Youth: With female workforce participation at a dismal 24%, India must prioritize gender-sensitive policies. Initiatives like Karnataka’s Gruha Lakshmi scheme, which provides financial support to women, could be paired with remote work infrastructure and childcare facilities. Similarly, rural youth need access to training centers, as seen in Odisha’s Skilled-in-Odisha program, which has trained over 5 lakh youth since 2016.
A Call to Action
India’s employment paradox—millions of skilled youth but few suitable jobs—threatens to derail its economic aspirations. The country’s future hinges on its ability to transform its education system, close the digital divide, and prepare its workforce for a tech-driven world. Success stories like Telangana’s T-Hub, which has incubated over 2,000 startups and created 1.5 lakh jobs, show what’s possible when innovation and skill development align.
Without swift action, India risks squandering its demographic advantage. The time to act is now—equipping youth with skills that match the demands of tomorrow’s economy, from AI to renewable energy, is not just an economic imperative but a moral one. India’s youth deserve more than degrees; they deserve careers that offer dignity, stability, and growth.
(The writer is a professional with 29 years of experience in the corporate world and a pioneer in India’s telecom industry, recognized with numerous prestigious awards in India and abroad.)
