Graduation Done, Job Search Continue, NITI Aayog Finds Just 8.25% in Matching Jobs

India’s higher education and skilling systems face a significant challenge in connecting what students learn with the jobs available in the economy, according to a new NITI Aayog report. The think tank has called for a stronger focus on specialised, job linked education, apprenticeships and emerging sectors as part of the country’s broader skilling strategy. The report, titled ‘Reimagining Skilling for Viksit Bharat’, highlights the gap between educational qualifications and employment outcomes, while pointing to outdated curricula and the popularity of generic undergraduate programmes as some of the factors behind the mismatch. Only a small share work in qualification-matched roles Citing data from the Economic Survey 2024-25, NITI Aayog said only 8.25% of graduates are employed in roles aligned with their qualifications. In other words, the vast majority of graduates work in positions that do not closely correspond to what they studied. The report argued that India's higher and technical education system has struggled to keep pace with changing industry requirements. According to the think tank, curricula at many institutions remain insufficiently aligned with evolving labour market needs, meaning degrees and other qualifications do not always translate directly into employability. Graduate unemployment remains a concern NITI Aayog also highlighted relatively high unemployment among educated workers. According to figures cited in the report, unemployment among graduates stood at 13%, while the rate for graduate women was 20.4%. Both figures were considerably higher than the national unemployment rate of 3.2% cited by the report. The figures underline the challenge of ensuring that higher education leads to meaningful employment opportunities. However, unemployment and qualification mismatch are not identical measures. A graduate may be employed in a job unrelated to their qualification and therefore be counted as employed despite experiencing a skills or education mismatch. The popularity of generic degrees The report also pointed to the large concentration of students in conventional undergraduate programmes such as Bachelor of Arts, Bachelor of Science and Bachelor of Commerce. Of the 3.4 crore students enrolled in undergraduate programmes, around 1.13 crore were enrolled in B.A. programmes alone, according to the report. Combined enrolment in B.A., B.Sc. and B.Com programmes exceeded 2 crore students. NITI Aayog argued that these programmes do not always provide a direct pathway into specific occupations, particularly when curricula and practical training are not sufficiently connected to industry requirements. Greater focus on emerging sectors The think tank has recommended moving towards more specialised and employment-oriented programmes, particularly in sectors expected to experience strong growth. Among the areas highlighted are- Green industries Electric vehicles Emerging technologies Industry-linked technical skills Apprenticeships and workplace training The broader objective is to make education and skilling more responsive to actual demand in the labour market. Apprenticeships could play a bigger role NITI Aayog has also emphasised apprenticeships as an important bridge between education and employment. Workplace based training can give students exposure to practical skills and help employers assess potential workers before making longer term hiring decisions. A stronger apprenticeship ecosystem could therefore complement classroom education, particularly in sectors where employers require specialised technical capabilities. What about the NEET figure? The report also mentioned that 8.7 crore people aged 15 to 29, equivalent to around 11% of the population outside the labour force, fall into the NEET category those not in education, employment or training. However, NITI Aayog subsequently issued a clarification on the figure. The think tank said that the NEET category referred to in its report consists of people not seeking employment, and therefore the number should not be interpreted as a measure of unemployment or added to the country unemployment rate. This distinction is important because someone who is neither studying nor working may not necessarily be looking for a job. The unemployment rate, meanwhile, is calculated using a different population base and definition. A skill to jobs challenge The findings highlight a broader question for India's education system: how can the country ensure that growing access to higher education translates into skills that employers actually need Increasing the number of graduates alone may not be enough if courses remain disconnected from changing economic opportunities. At the same time, generic degrees can continue to have value when combined with relevant skills, practical experience and further professional training. NITI Aayog recommendations therefore point towards a greater emphasis on specialisation, industry collaboration, apprenticeships and emerging sectors. The challenge now lies in translating those recommendations into changes across universities, colleges, vocational institutions and the labour market so that a degree becomes not just an academic qualification, but a stronger pathway towards sustainable employment.