5 Major Reasons for Educated Unemployment in India 2024

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There are several challenges that our Country faces like Population, poverty, and inflation. All these problems have given birth to many other problems. One such problem is the Educated Unemployed. These people are well qualified and ready to contribute to society by working towards it. Despite many efforts, they failed to get the job. We will not go on Data as they are quite shocking, but yes women are more hurt as the societal structure is not supporting them to resume work after motherhood. Even Covid has played a big part in adding to the number of educated unemployed.

Educated unemployment, in simple words, is not finding a job in a particular industry despite holding a relevant degree and willing to work at industry-standard wages/salaries. 

Youth unemployment in India is among the major concerns and is one of the most widely discussed issues, yet it has hardly seen any resolution. Education for us Indians is finishing schools and colleges. But we fail to understand that that’s not it.

It’s not the number of years that you spend in schools or colleges that’s going to land you a job. It’s the quality of education and knowledge acquired during these years, that matters. Most of our childhood and youth is spent in mugging up textbooks and very less in practical understanding and acquiring skills.

According to a report, almost 2 million graduates and half a million postgraduates are unemployed in India. around 47% graduates in India are not suitable for any kind of industry role. Above all, the level of educated unemployment in India increases with higher education. while, at the primary level, youth unemployment is somewhere around 3.6%, it is 8% at the graduate level and 9.3% at the post-graduate level.

What Measures can be taken to reduce Educated Unemployment in India?

• We can provide more skill development courses and training from top educational institute for the immediate start earning. 
• Technical courses for those interested in IT and technology field.
• Flexible learning options to save time and continue learning with your regular studies and work
• Certificate from top academies or educational institutes is an add-on value to your credential.
• Introduce more job-guaranteed programs and training.
• Provide quality course content with upgraded modules that meet the upcoming requirements of industries. Thus, making the course valuable and beneficial for learners.
• Strong placement support to all learners with the aim of 100% placement
• Provide facility of education loans for top-ranking students.

Let us have a look at the 5 major reasons for educated unemployment in India:

1. Population

Population, or as they say, overpopulation, has always been a roadblock for a considerable number of issues. This ranges from healthcare, basic shelter, to youth unemployment in India. In an economy that has 1.35 billion people living in it, we can hardly expect to see that the demands of each and every individual are met. The population is humongous for meeting basic food supplies and medical treatments, let alone jobs and placements.

Talking about the youth population and youth unemployment in India, according to a source, every year, India sees an 8-9% increase in enrolment at the higher education level. India is among the top 5 countries to have the highest number of students going to universities. The problem here is that there is no equivalent rise in the number of opportunities.

The supply of graduates is more than the demand there is. This gap especially widens in times of recession, when the companies and organisation find it difficult to cope with the crumbling economy, resulting in laying off of employees, much less hiring new ones.

2. Low Institution/University Standards

When we compare our educational institutions with the ones outside of the country, we come to an understanding that the teaching methodology is extremely flawed. Outdated curriculum, inferior teaching resources, lack of basic infrastructure, to name a few, are at the root of youth unemployment. The students are not trained to meet the needs of the economy, or understand the subject to the core, but rather to cram up the syllabus and get the right grades.

The number of engineering institutes in India stood at 337 in 1990, which in 2017 stood at 6427  

Above all, the present education system has become a way of business for most. The fees have sky-rocketed, whereas the quality of education has remained substandard. This tends to leave most youth at the mercy of government colleges, which, by far, are completely lagging behind when compared to private institutes. While the increase in the number of institutes in any given field is important in light of the rising population, the quality of these institutes was and has never been touched upon. In India, the rising number of institutes only means compromising on the quality of education, probably due to a lack of monetary resources and funding. 

3. Lack of right skills

The absence of relevant skills is one of the major reasons for youth unemployment in India. To be fit for working in any industry, it is quite important to equip oneself with the necessary skill set and focus on competency. However, most youth today lack the appropriate skills that a job specification requires them to have.

A very high number of graduates do not have the required proficiency in English communication. The role of primary education steps in when we talk about skills. It is important to focus on basic skills like communication and language at the elementary level.

4. Job Opportunity & Qualification Mismatch

 

Low salaries have been at the threshold of educated unemployment in India. The best colleges and institutes in India have failed to provide jobs that can pay decently.

A report says that 48% of urban youth face the problem of getting a suitable job. Of the ones employed, 38% are dissatisfied. This also means a lack of good working environment and conditions.

Lack of decent remuneration, especially in the field of engineering and legal studies, has been widely reported by the media. While the companies and lawyers might be making it huge, they fail to adequately compensate their fellow employees and juniors. This acts as a barrier for many graduates seeking employment. They will turn their back to the right opportunity knocking on their doors, leaving them idle. 

5. Meeting Societal Responsibilities

Women have always been at the center of discussion when it comes to employment and unemployment in India. Most women, drop the idea of taking up a job responsibility upon graduation. This is mainly due to prospects of matrimony.

The idea of a working female is still not very widely accepted in India. While most women do aspire to build their careers, time constraints, and family pressure have always been a reason to shun them away from taking up good opportunities. There is a clear need to focus on eliminating female youth unemployment in India by spreading awareness of women’s empowerment.

Conclusion

Employment and unemployment in India have always been at the center of discussion for the government and intellectuals alike. Employment in itself comes with some of its own issues, like lack of decent working conditions, exploitation of employees, absence of decent remuneration, etc.

Although there are laws that focus on employment and unemployment in India, we have barely seen any implementation. When it comes to educated unemployment in India, the Regulation of wages, making the private sector more organised, and fixing fees for educational institutes are, inter alia, some ways to control it.

Above all, quality of education should be the cornerstone for the government and people alike. It’s time we take the Skill development initiative undertaken by the ruling government more seriously. 

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FAQs

Q1. What does educated unemployment mean?

Ans. Educated unemployment indicates that individuals with formal education, usually those holding university degrees, are unable to secure appropriate employment corresponding to their qualifications.

Q2. What causes educated unemployment in India?

Ans. The causes include:

• Education-industry mismatch: Many graduates hold degrees in sectors with limited employment opportunities.
•  Education quality: Some institutions provide substandard education that does not meet industry requirements, resulting in unemployable graduates.
• Lack of practical skills: The education system prioritizes theoretical knowledge over practical skills.
•  Economic factors: Sluggish economic growth and inadequate job creation.
• Overemphasis on specific fields: There is an excess of graduates in popular areas like engineering and management.

Q3.  How does educated unemployment impact the economy?

Ans. The economy is impacted by educated unemployment in several ways:

• Investment in education does not result in productive employment, leading to wasted resources.
• High unemployment rates among educated individuals can cause dissatisfaction and social unrest.
• The emigration of educated individuals in search of better opportunities can result in a loss of talent, leading to a brain drain.

Q4.What sectors are most affected by educated unemployment in India?

Ans: In India, the following sectors are particularly affected by educated unemployment:

• There is an oversupply of engineers in comparison to available job positions.
• A high number of MBA graduates are unable to secure corresponding managerial positions.
• Despite growth, there is still a mismatch between the skills of individuals in the Information Technology sector and the job requirements.

Q5. How can educated unemployment in India be minimized?

Ans: Educated unemployment in India be minimized with potential solutions such as:

• Restructuring curricula: Matching educational curricula with the requirements of the industry.
• Promoting skill development initiatives: Encouraging vocational training and skill enhancement.
• Supporting entrepreneurship: Providing encouragement and assistance to startups and entrepreneurial endeavors.
• Strengthening ties between Industry and Academia: Improving collaboration between educational institutions and industries to enhance job opportunities.
• Enhancing Career Guidance: Offering improved career advice and counselling services for students.