Study: India adds more graduates than jobs

New Delhi: About 40 per cent of India’s young graduates are unable to find jobs, and only a small fraction secure stable salaried employment within a year of completing their studies, according to a report by Azim Premji University.

The State of Working India report estimates that 11 million out of 63 million graduates aged 20–29 were unemployed as of 2023. It also highlights that just around 7 per cent of graduates who report themselves as unemployed are able to find permanent salaried jobs within a year.

Unemployment remains particularly high among younger graduates, with rates nearing 40 per cent for those aged 15–25 and about 20 per cent for the 25–29 age group.

The report attributes this trend to the rapid expansion in the number of graduates, which has not been matched by sufficient job creation.Many graduates struggle to find stable and adequately paid jobs, reflecting deeper structural issues in the labour market.

The report also notes a decline in the share of young men in education, from 38 per cent in 2017 to 34 per cent in 2024, largely due to financial pressures. The proportion citing the need to support household income as a reason for leaving education rose from 58 per cent in 2017 to 72 per cent in 2023.

Between 2004–05 and 2023, India added about 5 million graduates annually, but only 2.8 million found jobs each year, with even fewer entering salaried roles.