Only one in two Indian graduates unemployable: Economic Survey

About one in two graduates straight out of Indian colleges is not employable, the Economic Survey for 2023-24 has found. This startling data comes at a time when the government is aiming to shrink unemployment numbers, increase apprenticeship programs, and create jobs in the services and manufacturing sectors.

“Estimates show that about 51.25% of the youth is deemed employable. In other words, about one in two are not yet readily employable, straight out of college. However, it must be noted that the percentage has improved from around 34% to 51.3% in the last decade," highlighted the Economic Survey.

The survey also said the Indian economy needs to generate an average of nearly 7.85 million jobs annually until 2030 to cater to the rising demand for workforce, especially because of the production-linked incentive schemes that are meant to boost domestic manufacturing.

The survey also highlighted the role gig workers can play in improving employment as their strength is expected to expand to 23.5 million by 2029–30. 

Gig workers and vocational training

“Gig workers are expected to form 6.7% per cent of the non-agricultural workforce, or 4.1% of the total livelihood in India, by 2029–30,” the Economic Survey said, while flagging concerns over effective social security measures for them.

“While the gig economy may open up employment opportunities for various sections of workers, including youth, persons with disabilities, and women, a significant issue in the Indian context and globally has been the creation of effective social security initiatives for gig and platform workers,” the survey noted. “The Code on Social Security (2020) marks a significant advancement by expanding the scope of social security benefits to encompass gig and platform workers.”

The Economic Survey also pointed to challenges faced by apprenticeship programs as a reason for India’s gap in skillsets.

"There exist significant challenges in the Indian apprenticeship ecosystem, such as lack of coordination between education institutions and industry, inadequate infrastructure, gaps in the regulatory framework,” the survey said. “Besides, the negative perception of vocational training as being inferior to academic education is one of the biggest challenges.”

“The apprenticeship framework thus needs to be re-calibrated to provide flexibility and negotiability in work hours, compensation, and disengagement,” it added.