Why in news?
A recent labour market survey reported that unemployment rates among graduates and postgraduates have risen despite economic recovery. Discussions in Parliament on 10 October 2025 underscored the urgency of creating quality jobs for educated youth.
Understanding the problem
Unemployment among degree holders has grown steadily in recent years. While overall unemployment dipped after the pandemic, joblessness for graduates remains high. Women and young people are disproportionately affected. Many qualified individuals either stay unemployed or work in jobs that do not match their skills.
Causes
- Skill mismatch: Educational curricula often lag behind industry needs. Employers report that graduates lack practical skills and communication abilities.
- Jobless growth: Sectors like agriculture and manufacturing generate fewer jobs per unit of output. The rise of automation and digital technology reduces demand for routine labour.
- Gender barriers: Female labour force participation is low due to safety concerns, social norms and lack of childcare facilities.
- Urban concentration: Jobs are concentrated in a few metro areas. Graduates from smaller towns face relocation costs and stiff competition.
- Underfunded public sector: Government vacancies remain unfilled due to fiscal constraints, limiting stable employment opportunities.
Impact on society
Persistent unemployment leads to frustration, mental stress and social unrest. Families who invest in education may fall into debt when returns are uncertain. Skilled workers may emigrate, causing brain drain. Youth without meaningful work are more susceptible to addiction and crime.
What can be done?
Experts suggest overhauling curricula to align with emerging sectors such as renewable energy, artificial intelligence and healthcare. Apprenticeships and on‑the‑job training can bridge the gap between education and employment. Promoting entrepreneurship through access to credit and mentoring can create self‑employment. Public investment in infrastructure and social services generates direct jobs and crowds in private investment. Finally, policies that encourage women’s participation—such as flexible work hours and safe transport—can unlock a large pool of talent.