40% of graduates unemployed in India, future cohorts face same crisis: Azim Premji report
Follow TNM's WhatsApp channel for news updates and story links.Karnataka, Tamil Nadu, Kerala, and Andhra Pradesh continue to perform well in providing access to higher education, but are increasingly facing challenges related to skill-training and graduate employment, according to the ‘State of Working India 2026’ report published by Azim Premji University’s Centre for Sustainable Employment. The report highlights a widening disconnect between educational enrolment and job creation. Nearly 40% of those aged 15 to 25 are unemployed, while the rate stands at about 20% for those aged 25 to 29. Among the 6.3 crore graduates aged between 20 and 29 years, 1.1 crore were unemployed in 2023. Graduate unemployment has remained at 35–40% for decades. Even among young male graduates who find work within a year, only a small proportion secure permanent salaried positions.India has 36.7 crore persons aged between 15 and 29 years, making up one-third of the working age populace. Of this, 26.3 crore persons are outside the education system and form the potential workforce. The country’s median age is currently 28, but its demographic advantage is expected to begin narrowing after 2030, making job creation in the coming decade critical.How have southern states fared?Between 2011 and 2016, student-teacher ratios worsened across most regions, including southern districts. However, from 2016 to 2021, southern states continued to maintain relatively better ratios overall and conditions improved in some northern areas. Importantly, districts in Kerala, Andhra Pradesh, Karnataka, and Tamil Nadu managed to expand both enrolment and teacher numbers simultaneously, preventing a sharp decline in teaching quality.Southern states, particularly Karnataka, stand out for better access, with higher college density relative to population. As of 2021, Karnataka had the highest number of colleges per lakh youth population, indicating a more balanced distribution of institutions relative to its population. While larger states like Uttar Pradesh and Maharashtra have more colleges overall, southern states rank higher when adjusted for population, highlighting better access.A recent decline in male enrolment—from 38% in 2017 to 34% in 2024—has been linked to financial pressures, with a majority leaving education to support their household. While private institutions have driven much of the expansion in higher education nationwide, concerns remain over quality, including high student-teacher ratios and uneven standards.Vocational training has expanded rapidly, with Industrial Training Institutes (ITI) increasing nearly threefold since 2005. Southern states have seen significant growth in this sector, but the expansion, the report notes, has been uneven. In states like Karnataka, capacity has grown more in already developed districts, potentially widening regional disparities. Moreover, private ITIs often lag behind government-run institutions in quality, contributing to a fragmented training ecosystem.Gender disparities remain evident despite progress in education. While female enrolment has risen substantially, participation in vocational training—especially in ITIs—remains low across southern states, including Kerala and Tamil Nadu. States like Tamil Nadu and Karnataka have also been relatively successful in translating economic growth into salaried jobs for young people, including women. The report further notes that the contrast between government and private ITIs is stark in states like Tamil Nadu and Karnataka. “[G]overnment ITIs retain relatively high-quality scores, while the surrounding private institutions underperform, creating a fragmented training ecosystem within the same region,” the report says. In Andhra Pradesh, however, graduate unemployment remains high, underlining broader structural issues in job creation. Across the southern region, male and female unemployment rates tend to move in tandem, indicating systemic constraints rather than gender-specific factors.Despite expanded access, financial barriers continue to limit entry into professional courses. High costs of degrees in fields such as medicine and engineering often exceed the annual expenditure of poorer households, reinforcing inequalities in access to high-paying jobs. At the same time, graduates continue to earn significantly more than non-graduates, although entry-level wages for young men have stagnated over the past decade.With southern states already experiencing a decline in the share of youth in their populations, future growth will depend more on productivity gains than demographic advantage. The report underscores the need to better align education with employment opportunities, strengthen skill development systems, and improve the quality and reach of vocational training to address the growing gap between education and jobs.
Follow TNM's WhatsApp channel for news updates and story links.
KERALA, Karnataka, Tamil Nadu and Andhra Pradesh continue to perform well in providing access to higher education but are increasingly facing challenges related to skill training and graduate employment, according to the ‘State of Working India 2026’ report published by Azim Premji University’s Centre for Sustainable Employment.
The report highlights a widening disconnect between educational enrolment and job creation.
Nearly 40% of those aged 15 to 25 are unemployed, while the rate stands at about 20% for those aged 25 to 29. Among the 6.3 crore graduates aged between 20 and 29 years, 1.1 crore were unemployed in 2023.
Graduate unemployment has remained at 35–40% for decades. Even among young male graduates who find work within a year, only a small proportion secure permanent salaried positions.
India has 36.7 crore persons aged between 15 and 29 years, comprising one-third of the working-age population. Of this, 26.3 crore persons are outside the education system and form the potential workforce. The country’s median age is currently 28, but its demographic advantage is expected to begin narrowing after 2030, making job creation in the coming decade critical.
How have southern states fared?
Between 2011 and 2016, student-teacher ratios worsened across most regions, including southern districts. However, from 2016 to 2021, southern states continued to maintain relatively better ratios overall and conditions improved in some northern areas.
Importantly, districts in Kerala, Andhra Pradesh, Karnataka, and Tamil Nadu managed to expand both enrolment and teacher numbers simultaneously, preventing a sharp decline in teaching quality.
Southern states, particularly Karnataka, stand out for better access, with higher college density relative to population.
As of 2021, Karnataka had the highest number of colleges per lakh youth population, indicating a more balanced distribution of institutions relative to its population. While larger states like Uttar Pradesh and Maharashtra have more colleges overall, southern states rank higher when adjusted for population, highlighting better access.
A recent decline in male enrolment—from 38% in 2017 to 34% in 2024—has been linked to financial pressures, with a majority leaving education to support their household. While private institutions have driven much of the expansion in higher education nationwide, concerns remain over quality, including high student-teacher ratios and uneven standards.
Vocational training has expanded rapidly, with Industrial Training Institutes (ITI) increasing nearly threefold since 2005. Southern states have seen significant growth in this sector, but the expansion, the report notes, has been uneven.
In states like Karnataka, capacity has grown more in already developed districts, potentially widening regional disparities. Moreover, private ITIs often lag behind government-run institutions in quality, contributing to a fragmented training ecosystem.
Gender disparities remain evident despite progress in education. While female enrolment has risen substantially, participation in vocational training—especially in ITIs—remains low across southern states, including Kerala and Tamil Nadu. States like Tamil Nadu and Karnataka have also been relatively successful in translating economic growth into salaried jobs for young people, including women.
The report further notes that the contrast between government and private ITIs is stark in states like Tamil Nadu and Karnataka. “[G]overnment ITIs retain relatively high-quality scores, while the surrounding private institutions underperform, creating a fragmented training ecosystem within the same region,” the report says.
In Andhra Pradesh, however, graduate unemployment remains high, underlining broader structural issues in job creation. Across the southern region, male and female unemployment rates tend to move in tandem, indicating systemic constraints rather than gender-specific factors.
Despite expanded access, financial barriers continue to limit entry into professional courses. High costs of degrees in fields such as medicine and engineering often exceed the annual expenditure of poorer households, reinforcing inequalities in access to high-paying jobs.
At the same time, graduates continue to earn significantly more than non-graduates, although entry-level wages for young men have stagnated over the past decade.
With southern states already experiencing a decline in the share of youth in their populations, future growth will depend more on productivity gains than demographic advantage.
The report underscores the need to better align education with employment opportunities, strengthen skill development systems, and improve the quality and reach of vocational training to address the growing gap between education and jobs.
