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Why are graduates not finding jobs matching their degrees? NITI Aayog flags skills gap
Only 8.25% of graduates are employed in roles aligned with their qualifications. Check out the points as why grads are not finding jobs matching their degrees.
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NITI Aayog's recent report titled 'Reimagining Skilling for Viksit Bharat 2047' has flagged that the unemployment rate among graduates in India remains much higher than the national average.
The report released by NITI Aayog on August 18 states that only 8.25% of graduates are employed in roles aligned with their qualifications. The report cites the Economic Survey 2024-25 for the 8.25% figure.
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The report states that the educated unemployment rate is also high: 13% of all graduates and 20.4% of graduate women are unemployed, far above the national unemployment rate of 3.2%.
Why are degrees not translating into jobs?
Lack of labour market information
According to the report, students and their parents lack labour market information. Curricula in many institutions have not adapted to the changing industry needs.
Placement-linked programs are overpriced
Advanced or placement-linked programmes, which serve as a gateway to stable, well-paid jobs, are frequently priced out of reach, limiting access for those who need them most. Generic degrees such as Bachelor of Arts (BA), Bachelor of Commerce (B.Com), and Bachelor of Science (B.Sc) seldom translate into direct employment, and even entry-level roles often require workplace-readiness certifications, such as Tally or Office applications.
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Lack of practical training
The report also highlights that practical training, hands-on projects, and industry exposure are largely absent across both school and higher education. As a result, foundational employability and entrepreneurship skills are not systematically built.
Government jobs remain a major aspiration
The report further states that of the 3.4 crore students enrolled in undergraduate programmes, 1.13 crore are in B.A. alone, and combined enrolment in B.A., B.Sc., and B.Com exceeds 2 crore. Many pursue these degrees primarily to remain eligible for government jobs, with 1.86 crore applications for just 55,000 posts between November 2024 and July 2025.
NITI Aayog’s proposed solution
1. First, schools and colleges need to move beyond generic degree pathways towards specialised, job-linked programmes, particularly within high-enrolment degrees such as B.A., B.Sc., and B.Com., through applied specialisations (e.g., B.A. Hospitality, B.Com. Analytics, B.Sc. Applied Technology) that are closely aligned with industry demand.
2. Work-integrated and apprenticeship-embedded degree programmes (AEDP) need to be scaled significantly.
3. System will require more flexible delivery formats, including modular, part-time, hybrid, and earn-while-you-learn models, to enable students to combine learning with work.
4. NITI Aayog also proposes reforms aimed at making learning more flexible and portable, including implementation of the National Credit Framework and a Digital Skills Passport to help track and recognise skills acquired across different learning pathways.
These reforms can be undertaken through multiple complementary modes of Public-Private Partnership (PPP) and private-sector engagement.
For more details, candidates can visit the NITI Aayog report posted here.
