Surabhi Gupta
New Delhi: The unemployment situation in India is becoming increasingly serious. Many fresh graduates struggle to find jobs because there’s a big gap between what they learn in school and what companies actually need. With businesses moving quickly towards using Artificial Intelligence (AI) and automation, they are looking for workers who can adapt to new roles almost instantly.
According to the India Graduate Skill Index 2025 by Mercer-Mettl, only 42.6% of Indian graduates are employable, down from 44.3%. This means that over half—57.4%—of graduates do not meet employers’ standards. When looking at gender, around 43.4% of men and 41.7% of women are considered employable.
Trending Skills: AI and Data Science
The job market is particularly hot for roles in AI and data science. The employability rate for those in AI and machine learning is at 46%. In addition to technical skills, soft skills are becoming more important. Graduates need to focus on:
- Communication skills (55.1%)
- Critical thinking (54.6%)
- Leadership qualities (54.2%)
However, creative professionals face challenges too, with an employability score of just 44.3%.
Top States and Colleges for Employability
Employability rates vary by college tier: 48.4% for Tier-1, 46.1% for Tier-2, and 43.4% for Tier-3 colleges. Among states, Delhi (53.4%), Himachal Pradesh (51.1%), and Punjab (51.1%) lead in producing employable graduates, thanks to their strong educational systems and industry partnerships.
Job Market Challenges
The biggest hurdle graduates face is the skill gap between their education and what industries require. Many lack hands-on experience, which makes transitioning to real jobs difficult. Contributing factors include:
- A traditional education system that emphasizes theory over practice.
- Rapid advancements in AI that are reshaping job roles, creating a need for continuous learning.
- A lack of training in essential workplace skills, like teamwork and adaptability.
Tesla’s Job Openings in India
In light of rising unemployment, Tesla Inc. has announced job openings in India, stirring excitement about its potential expansion. They are looking to fill 13 positions, including service technicians and advisors in Mumbai and Delhi. The Indian government’s decision to lower import duties on luxury electric vehicles has fueled speculation about Tesla’s growth in the region.
Future Directions for India’s Workforce
To tackle the employment crisis, experts recommend the following:
- Students should focus on AI, data science, digital marketing, and soft skills like teamwork and communication.
- Colleges need to offer more industry-relevant training and practical experience.
- Employers should provide internships and job training programs to help close the skill gap.
As industries evolve, aligning education with job market needs will be critical for preparing a future-ready workforce.
Chandrasekhar Sripada, Clinical Professor of OB at ISB, emphasizes that our approach to skill development is flawed. He points out that we do not create training programs based on actual job market needs, which leads to graduates who lack relevant skills. For instance, training journalists solely for print media will not prepare them for the booming digital space.
Moreover, the quality of education often fails to translate into employment-ready skills. Graduates from fields like B.Sc. or B.Com may lack practical skills needed in the workforce. The disconnect between educational programs and real job requirements is what the National Education Policy (NEP) aims to improve.
Komal Srivastava, an education expert, argues that the current education system often stifles creativity and independence. Many students feel pressured to pursue specific paths, often based on parental expectations, which can lead to a lack of engagement and high dropout rates. She notes that the focus on rote learning over holistic development limits students’ potential.
Yogesh Rai from JNU points out that rapid technological change is widening the skills gap. Many graduates simply are not learning the skills needed for today’s jobs. Key issues include:
- Accelerating technological progress demands new skills.
- Old curricula do not align with industry needs.
- Continuous learning is necessary to keep up.
To bridge this gap, collaboration between schools and industries is essential. This partnership can lead to practical learning opportunities, ensuring that students are better prepared for the workforce.
Key Areas for Development:
- Create more industry-focused training.
- Enhance vocational training and apprenticeships in curricula.
- Regularly update educational programs to include relevant skills and subjects.
- Promote government initiatives that support skill development.
As industries demand specialized skills, students should prioritize acquiring a mix of technical skills—especially in AI and digital fields—and soft skills such as emotional intelligence and effective communication. This balanced skill set will be vital for future job opportunities as AI continues to redefine the employment landscape.
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Source linkINDIA EMPLOYMENT CRISIS, UNEMPLOYEMENT, AI RESHAPING INDUSTRIES, INDIA BRACES FOR A FLARING EMPLOYMENT CRISIS — LEARN SKILL GAP MAKES MOST OF GRADUATES JOBLESS
