Over 53% graduates in India employed in roles below their educational qualifications: Economic Survey
When educational level and skills are compared, only 1.28% of people with primary education, 10 years of education or informal education have specialised skills
The 2024-25 Economic Survey found that over 53 per cent of graduates and 36 per cent of postgraduates are employed in roles below their educational qualifications.
When educational and skill levels are compared, only 1.28 per cent of people with primary education, 10 years of education or informal education have specialised skills.
The report says 32.13 per cent of them have elementary skills, 66.3 per cent are semi-skilled and 0.29 per cent of them have high competency skills.
On the contrary, graduates and postgraduates have higher specialised skills. Here's a detailed look.
| Occupational skill of workers | Primary education, or 10 years of education or informal education | Secondary education, or 11-13 years of education | Graduate degree | Postgraduate degree or above |
|---|---|---|---|---|
| Elementary skill | 32.13 | 19.25 | 3.22 | 0.96 |
| Semi-skilled | 66.3 | 72.18 | 50.3 | 28.12 |
| High competency skill | 0.29 | 2.79 | 8.25 | 7.67 |
| Specialised skills | 1.28 | 5.77 | 38.23 | 63.26 |
The survey found that low-skilled workers are a key challenge, and low educational skills in the workforce create a mismatch between their academic qualifications and job market demands.
It added that economic policies, technological advancements, globalisation, and labour market demands are among the factors shaping the country's skilling and employment ecosystem.
“In the context of emerging global trends, including automation, generative AI, digitalisation, and climate change, aligning the nation's skill development initiatives with the anticipated transformations in the labour market is vital. The increasing pace of these disruptive changes necessitates the establishment of a resilient and responsive skilled ecosystem. It is imperative to assess how well-prepared India’s youth are for emerging opportunities,” the report stated.
The report stated that the composition of skills by education and occupations has significant implications for the earnings of individuals.
“According to the PLFS data, there is a strong link between educational attainment, occupational roles, and income levels."
The report said 4.2 per cent of the workforce who have specialised skills earn between ₹4 lakh and ₹8 lakh annually, while 46 per cent earn less than ₹1 lakh, predominantly. Of them, a majority are low to semi-skilled workers like agricultural labourers, clerical staff, factory workers, and small-scale service providers.
Also read: Union Budget 2025: Young professionals share their expectations, wish for better jobs and tax reforms
It added that 65.3 per cent of the workforce received no form of vocational training.
