Generic degrees face weak employment linkages as educated unemployment remains high
Srinagar, Aug 27: Only 8.25 per cent of graduates in India are employed in jobs aligned with their educational qualifications, highlighting a widening disconnect between higher education and the requirements of the labour market, according to a new NITI Aayog report.
The report, titled “Reimagining Skilling for Viksit Bharat@2047”, says India’s higher and technical education system continues to struggle with outdated curricula, inadequate practical exposure and weak industry linkages, leaving a large majority of graduates in jobs that do not correspond to what they studied. The figure of 8.25 per cent is cited by NITI Aayog from the Economic Survey 2024-25.
The report also points to a significant problem of educated unemployment. Citing Periodic Labour Force Survey data for 2023-24, it says unemployment among graduates stood at 13 per cent, while the rate among graduate women was substantially higher at 20.4 per cent. Both figures were well above the national unemployment rate of 3.2 per cent cited in the report.
NITI Aayog has linked the problem partly to the overwhelming preference for generic undergraduate degrees that have relatively weak direct linkages with employment. Of the 3.4 crore students enrolled in undergraduate programmes, 1.13 crore were pursuing Bachelor of Arts, while combined enrolment in B.A., B.Sc. and B.Com programmes exceeded two crore, according to the report.
The report notes that many students pursue such degrees, among other reasons, to retain eligibility for government recruitment. It cites the example of 1.86 crore applications received for just 55,000 posts between November 2024 and July 2025, illustrating the intense competition for a limited pool of formal jobs.
According to NITI Aayog, the problem is not simply the absence of degrees but the lack of alignment between what students learn and the competencies employers require. It says curricula across higher and technical education remain outdated and classroom-oriented, while practical training, industry exposure and workplace-linked learning remain inadequate.
The report says only about 8 per cent of secondary and higher-secondary schools currently offer National Skills Qualification Framework-aligned skilling, with vocational education often treated as an optional or additional subject rather than being integrated into mainstream education. It also notes that 34 per cent of students identify lack of skills as a key problem while pursuing their degrees, while 18 per cent cite inadequate interview preparation.
Practical exposure is another major gap. NITI Aayog says 80 per cent of higher-education students identify lack of practical experience and industry exposure as a major pain point, while 47 per cent of formal workers cite lack of prior work experience and internships as the top challenge in finding new jobs.
The report argues that generic degrees such as B.A., B.Com and B.Sc. should increasingly be supplemented or redesigned around applied, industry-linked specialisations. It suggests examples such as B.A. in hospitality, B.Com in analytics and B.Sc. in applied technology, with curricula designed around actual labour-market demand.
NITI Aayog has also called for a major expansion of apprenticeship and work-integrated degree and diploma programmes. Under the proposed model, internships, apprenticeships and relevant work experience could count towards academic credits, allowing students to graduate with both formal qualifications and demonstrable workplace experience.
The report further recommends greater participation of industry through public-private partnerships, industry-led skilling programmes and specialised institutions or skilling hubs within existing universities and colleges. Such partnerships, it says, could help modernise curricula, provide industry-standard equipment and training, and create courses linked directly to employer requirements.
It also advocates flexible academic pathways, including modular, part-time, hybrid and “earn-while-you-learn” programmes, allowing students to combine education with employment. The proposed architecture envisages greater use of the National Credit Framework to enable movement between academic, vocational and technical pathways without forcing students to restart their education from scratch.
The report places the reforms within NITI Aayog’s broader vision for Viksit Bharat@2047, arguing that India’s demographic advantage will translate into sustained economic growth only if its workforce is equipped with skills relevant to emerging sectors. It identifies areas such as green industries and electric vehicles among high-growth sectors where demand-driven skilling could be prioritised.
At the school level, NITI Aayog has proposed introducing General Employability and Entrepreneurship Skills from Class 6 onwards, along with structured vocational “Kaushal Tracks” from Class 9, so that students receive earlier exposure to workplace-oriented skills and career pathways.
The report was published by NITI Aayog in August 2026. The government has subsequently reiterated its commitment to the proposed skilling reforms, including the ₹600-crore Integrated Scheme in Skilling Architecture announced in the Union Budget 2026-27. The Press Information Bureau has also clarified that the report’s estimate of 8.7 crore NEET youth should not be interpreted as equivalent to unemployment, as the category includes people who are not seeking employment.
The central message of the report is that expanding access to degrees alone will not be sufficient to address India’s employment challenge. NITI Aayog argues that education, vocational training, apprenticeships and employment need to be brought into a more integrated system in which qualifications translate more consistently into demonstrable skills, workplace experience and meaningful employment.
