India's employability crisis: Why degrees aren't enough for today's job market
Across India, academic milestones often arrive with high expectations and critical decisions. As students progress through the education system, whether completing school or preparing for college, they and their families are faced with choices that influence not just career paths, but also financial security, personal aspirations and social identity.
In the midst of this transition, most conversations revolve around what to study next. However, there is a deeper and more urgent concern that often goes unnoticed. The real challenge India is grappling with is not just unemployment. It is the issue of employability. This concern is not limited to individuals or households; it affects industries, educational institutions and the nation's economic future as a whole.
Let's look at the numbers. Every year, over 1.5 crore graduates enter India's job market. Yet the India Skills Report 2024 reveals that only 46% of them are considered employable by industry standards.
The Centre for Monitoring Indian Economy (CMIE) reports youth unemployment standing at 16 percent, even as companies struggle to find candidates with the right skills. Clearly, the problem is not just a lack of jobs; it is a mismatch between what education produces and what the market needs.
This mismatch is especially risky given India's youth bulge. With over 50 percent of the population under 25 and 65 percent under 35, India has one of the world's largest pools of working-age people. This presents a potential 'demographic dividend' that could propel the country toward becoming the world's third-largest economy by 2028. But if these young people are undertrained or underprepared, they risk becoming a demographic liability instead, fueling underemployment, frustration and even social unrest.
Why the mismatch
Why is this happening? Part of the issue is the rigidity of educational choices. For decades, students have followed well-worn academic paths: after Class 10, over 55% opt for Science (usually aiming for engineering or medicine), around 25–30% go into Commerce (B.Com, CA, BBA), and only 10–15% choose Humanities. After Class 12, most continue into familiar undergraduate programs, whether or not these truly match their abilities or interests.
However, the fastest-growing job opportunities today are in emerging sectors: Artificial Intelligence, cloud computing, cybersecurity, fintech, biotechnology, digital marketing, green energy and agri-tech. According to National Association of Software and Service Companies (NASSCOM), India is expected to create 90 lakh new jobs in digital and emerging technologies by 2030. Yet fewer than 20 percent of students are actively preparing for these fields, partly because schools and colleges are still stuck in rote learning and outdated curricula.
For instance, consider a student who graduates with a first-class degree in electronics engineering but struggles to find a job. It is only after completing a short-term certification in data analytics, a subject never covered during college, that they manage to secure a position at a tech startup. Stories like this reflect a broader reality and highlight the urgent need for India's educational institutions to move beyond textbooks and degrees, incorporating practical skills, internships, and industry exposure into the core of learning.
The National Education Policy (NEP) 2020 emphasizes skill development and greater flexibility in learning pathways, aiming to better prepare students for real-world careers. However, its implementation has been uneven, particularly outside major cities.
For many students, access to professional career counseling is limited or entirely absent. As a result, choices are often guided by family expectations or societal norms rather than a clear understanding of individual strengths, interests, or market trends. Unless students and institutions actively respond to the changing demands of the workforce, the promise of the NEP may remain unrealized.
Studies by McKinsey & Company suggest that improving employability by just 10 to 15 percent could add between $200 - $250 billion to India's GDP over the next decade. At the same time, global reports from the World Economic Forum highlight that countries such as Japan, Germany, and South Korea are facing significant labor shortages due to aging populations. This creates a unique opportunity for India's young workforce to become a major exporter of skilled talent, but only if they are equipped with the right skills and training.
To bridge the gap, India needs a coordinated national push. Colleges must build stronger industry partnerships for apprenticeships and problem-oriented projects. Platforms like Skill India and Pradhan Mantri Kaushal Vikas Yojana (PMKVY) must expand their reach, ensuring even rural students can access cutting-edge training. Families need to embrace lifelong learning, where upskilling and reskilling through short courses, online certifications, or modular programs, even for mid-career professionals.
Strategy for students and parents
For students at this crossroads, the key is to think beyond marks. Ask yourself: What are you passionate about? Where are the new opportunities? A student interested in Biology doesn't have to limit themselves to Medicine; they could explore Biotechnology, genetic research, health informatics, etc. Someone good at Math doesn't have to stick to Engineering; they could venture into data science, AI, quantitative finance, etc.
And for parents: support your child's curiosity and adaptability. The most successful careers of tomorrow may be in fields that didn't even exist ten years ago.
As the results season sweeps across India, let's widen the national conversation. It's not just about who scored how much, or who gets into which college. It's about whether we are preparing a generation that is ready, ready not just to find a job, but to shape the future of India.
Because the real question isn't just 'What will you do after Class 10 or 12 or a degree?' It's 'How will you help build the India of tomorrow?
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The Hindu
11-06-2025
- The Hindu
India's employability crisis: Why degrees aren't enough for today's job market
Across India, academic milestones often arrive with high expectations and critical decisions. As students progress through the education system, whether completing school or preparing for college, they and their families are faced with choices that influence not just career paths, but also financial security, personal aspirations and social identity. In the midst of this transition, most conversations revolve around what to study next. However, there is a deeper and more urgent concern that often goes unnoticed. The real challenge India is grappling with is not just unemployment. It is the issue of employability. This concern is not limited to individuals or households; it affects industries, educational institutions and the nation's economic future as a whole. Let's look at the numbers. Every year, over 1.5 crore graduates enter India's job market. Yet the India Skills Report 2024 reveals that only 46% of them are considered employable by industry standards. The Centre for Monitoring Indian Economy (CMIE) reports youth unemployment standing at 16 percent, even as companies struggle to find candidates with the right skills. Clearly, the problem is not just a lack of jobs; it is a mismatch between what education produces and what the market needs. This mismatch is especially risky given India's youth bulge. With over 50 percent of the population under 25 and 65 percent under 35, India has one of the world's largest pools of working-age people. This presents a potential 'demographic dividend' that could propel the country toward becoming the world's third-largest economy by 2028. But if these young people are undertrained or underprepared, they risk becoming a demographic liability instead, fueling underemployment, frustration and even social unrest. Why the mismatch Why is this happening? Part of the issue is the rigidity of educational choices. For decades, students have followed well-worn academic paths: after Class 10, over 55% opt for Science (usually aiming for engineering or medicine), around 25–30% go into Commerce ( CA, BBA), and only 10–15% choose Humanities. After Class 12, most continue into familiar undergraduate programs, whether or not these truly match their abilities or interests. However, the fastest-growing job opportunities today are in emerging sectors: Artificial Intelligence, cloud computing, cybersecurity, fintech, biotechnology, digital marketing, green energy and agri-tech. According to National Association of Software and Service Companies (NASSCOM), India is expected to create 90 lakh new jobs in digital and emerging technologies by 2030. Yet fewer than 20 percent of students are actively preparing for these fields, partly because schools and colleges are still stuck in rote learning and outdated curricula. For instance, consider a student who graduates with a first-class degree in electronics engineering but struggles to find a job. It is only after completing a short-term certification in data analytics, a subject never covered during college, that they manage to secure a position at a tech startup. Stories like this reflect a broader reality and highlight the urgent need for India's educational institutions to move beyond textbooks and degrees, incorporating practical skills, internships, and industry exposure into the core of learning. The National Education Policy (NEP) 2020 emphasizes skill development and greater flexibility in learning pathways, aiming to better prepare students for real-world careers. However, its implementation has been uneven, particularly outside major cities. For many students, access to professional career counseling is limited or entirely absent. As a result, choices are often guided by family expectations or societal norms rather than a clear understanding of individual strengths, interests, or market trends. Unless students and institutions actively respond to the changing demands of the workforce, the promise of the NEP may remain unrealized. Studies by McKinsey & Company suggest that improving employability by just 10 to 15 percent could add between $200 - $250 billion to India's GDP over the next decade. At the same time, global reports from the World Economic Forum highlight that countries such as Japan, Germany, and South Korea are facing significant labor shortages due to aging populations. This creates a unique opportunity for India's young workforce to become a major exporter of skilled talent, but only if they are equipped with the right skills and training. To bridge the gap, India needs a coordinated national push. Colleges must build stronger industry partnerships for apprenticeships and problem-oriented projects. Platforms like Skill India and Pradhan Mantri Kaushal Vikas Yojana (PMKVY) must expand their reach, ensuring even rural students can access cutting-edge training. Families need to embrace lifelong learning, where upskilling and reskilling through short courses, online certifications, or modular programs, even for mid-career professionals. Strategy for students and parents For students at this crossroads, the key is to think beyond marks. Ask yourself: What are you passionate about? Where are the new opportunities? A student interested in Biology doesn't have to limit themselves to Medicine; they could explore Biotechnology, genetic research, health informatics, etc. Someone good at Math doesn't have to stick to Engineering; they could venture into data science, AI, quantitative finance, etc. And for parents: support your child's curiosity and adaptability. The most successful careers of tomorrow may be in fields that didn't even exist ten years ago. As the results season sweeps across India, let's widen the national conversation. It's not just about who scored how much, or who gets into which college. It's about whether we are preparing a generation that is ready, ready not just to find a job, but to shape the future of India. Because the real question isn't just 'What will you do after Class 10 or 12 or a degree?' It's 'How will you help build the India of tomorrow?
Time of India
10-06-2025
- Time of India
7 high-paying diploma courses in India for 2025
In India's rapidly evolving job market, diploma courses have emerged as highly effective pathways to well-paying careers. These programmes, typically ranging from six months to three years, offer practical, industry-focused education that aligns directly with current market demands. Unlike traditional degree courses, diplomas provide specialised skills that employers actively seek, often leading to immediate employment opportunities with competitive salaries. These 7 diploma courses represent the most promising options for students seeking high-earning career prospects in 2025, based on current industry trends, salary data, and projected growth rates. 1. Diploma in Computer Science and Information Technology The technology sector continues to drive India's economic growth, with the National Association of Software and Service Companies (NASSCOM) reporting an impressive 8% annual expansion in their 2023 report. This growth creates substantial demand for skilled IT professionals across programming, networking, cloud computing, and cybersecurity domains. Core skills development: Programming languages including Python and Java Network administration and security protocols Software testing methodologies Cybersecurity fundamentals Database management systems Career opportunities : Graduates typically secure positions as software testers, IT support specialists, junior developers, or network administrators. The versatility of IT skills allows for career progression across multiple specialisations. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Esta nueva alarma con cámara es casi regalada en Mercedes (ver precio) Verisure Undo Salary expectations : Starting salaries range from ₹22,000 to ₹50,000 monthly for fresh graduates. Professionals specialising in high-demand areas such as cloud computing or cybersecurity often exceed ₹60,000 monthly within their first few years of experience. 2. Diploma in Engineering (Polytechnic) Engineering diplomas provide robust technical foundations across specialisations including Mechanical, Civil, Electrical, and Computer Engineering. These programmes serve industries ranging from manufacturing and construction to technology and infrastructure development. Technical competencies: Advanced CAD software proficiency Technical design and drafting Project management principles Industry-specific equipment operation Quality control and testing procedures Professional pathways: Diploma engineers typically begin as junior engineers, site supervisors, CAD designers, or maintenance technicians. Many graduates secure positions with multinational corporations or pursue opportunities in Gulf countries. 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Experienced professionals in luxury establishments or international positions can achieve ₹1,00,000 monthly or higher. 5. Diploma in Nursing India's healthcare sector expansion, driven by population growth and increased health awareness, creates substantial demand for qualified nursing professionals. International opportunities further enhance career prospects. Technical competencies: Comprehensive patient care protocols Medical procedure assistance Healthcare administration systems Emergency response procedures Medical equipment operation Professional pathways: Graduates typically work as registered nurses, clinical assistants, or healthcare coordinators in hospitals, clinics, and diagnostic centres. Salary expectations: Domestic starting salaries range from ₹20,000 to ₹40,000 monthly. Private hospitals and international positions often offer ₹50,000 or higher monthly compensation. 6. Diploma in Graphic Design The proliferation of digital content across industries has dramatically increased demand for skilled graphic designers. Opportunities span advertising agencies, media companies, technology firms, and freelance markets. Technical competencies: Adobe Creative Suite mastery (Photoshop, Illustrator) Typography and visual composition Brand identity development User Interface (UI) and User Experience (UX) design fundamentals Digital illustration techniques Professional pathways: Graduates work as graphic designers, UI/UX designers, art directors, or independent freelance designers. The creative industry offers diverse specialisation opportunities. Salary expectations: Starting positions typically offer ₹20,000 to ₹40,000 monthly. Skilled designers with strong portfolios often earn ₹60,000 or more monthly, particularly through freelance work. 7. Diploma in Medical Laboratory Technology Medical Laboratory Technology professionals play crucial roles in India's expanding healthcare system, conducting essential diagnostic tests and analyses that inform medical treatment decisions. Technical competencies: Laboratory testing procedures Sample collection and analysis Diagnostic equipment operation Quality control protocols Medical report generation Professional pathways: Graduates typically work as laboratory technicians, diagnostic specialists, or pathology assistants in hospitals, diagnostic centres, and research facilities. Salary expectations: Starting salaries range from ₹20,000 to ₹35,000 monthly. Specialisation and experience can lead to ₹50,000 or higher monthly earnings. Building successful careers through practical education These diploma courses represent excellent pathways to lucrative careers in India's evolving economy. 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Indian Express
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Declining poverty, and the data that shows it
Poverty and inequality estimation in India have been subjects of considerable debate, especially in recent years with the economy experiencing several shocks. The great India poverty debate has, in fact, been marked by significant differences of opinion on the household survey data which forms the basis of estimation, the construction of the poverty lines, and on the trends over the decades. The debate has been particularly heated in the absence of data — the government did not release the consumption expenditure survey data for 2017-18 due to 'data quality issues'. This led to several studies trying to estimate poverty levels in India by drawing on alternate data sources such as the Periodic Labour Force Surveys and the CMIE data. Recently, the government has attempted to fill the data gap by conducting two rounds of household consumption expenditure surveys for 2022-23 and 2023-24. These surveys now allow for an examination of the trends in poverty over the past decade or so. The decline has been significant. Extreme poverty in India is estimated to have declined from 27.1 per cent in 2011-12 to 5.3 per cent in 2022-23 as per the latest World Bank data reported in this paper. This steep decline has occurred even as the Bank has raised the threshold for measuring extreme poverty to $3 a day from $2.15 earlier. To put these figures in perspective — the number of people living in extreme poverty in India fell from 344.47 million to 75.24 million over this period. While there has been some concern over the comparability of the consumption expenditure surveys carried out in 2011-12 and 2022-23 due to changes in the manner in which the recent survey was carried out and its sampling design, this is a steep decline. Moreover, even considering the poverty line for lower-middle income countries of $4.2 per day (revised upwards from $3.65), the poverty ratio in India fell from 57.7 per cent in 2011-12 to 23.9 per cent in 2022-23. The decline appears to have continued in the year thereafter. Earlier, Niti Aayog had estimated that multidimensional poverty in India had also registered a steep decline — falling from 55.34 per cent in 2005-06 to 24.85 per cent in 2015-16 to 14.96 per cent in 2019-21. This estimate of poverty was based on 12 indicators and drew on data from the National Family Healthy Surveys. Alongside these poverty estimates, the World Bank has also estimated that inequality in India, based on measures such as the Gini and Theil indices, did fall between 2011 and 2022. However, these estimates of inequality are based on the household consumption expenditure data, which typically tends to be lower than estimates based on household income. This is not just an academic exercise. The data from the latest rounds of the consumption expenditure surveys as well as the labour force surveys must serve as a valuable input for policy, informing the choices of policymakers.
