Unemployment crisis: '66% of unemployed are graduates', expert breaks down India’s graduate job struggle
Chartered Accountant Nitin Kaushik, in a post on X, noted that while youth unemployment rates in countries such as France and across the OECD remain high, India faces a different structural problem.
- Mar 13, 2026,
- Updated Mar 13, 2026 4:58 PM IST
India’s youth unemployment data may appear moderate at the headline level, but a closer look reveals a worrying trend — graduates form the largest share of the jobless population, raising concerns about the country’s education system and skill readiness, according to Chartered Accountant Nitin Kaushik.
Kaushik noted that while youth unemployment rates in countries such as France and across the OECD remain high, India faces a different structural problem. “Nearly 66% of the unemployed in India are graduates. In most countries, a degree acts as protection against joblessness, but here it has become a vulnerability,” he said.
According to him, the graduate unemployment rate in India is close to 29%, higher than several emerging and developed economies for the same demographic. This suggests that higher education is not translating into employability, creating what he described as a mismatch between qualifications and market demand.
India is expected to remain one of the youngest countries in the world, with projections showing that about 63% of the population could be in the working-age group by 2031. However, Kaushik warned that the demographic advantage could turn into a liability if job creation and skill development do not keep pace.
“If current trends continue, we are not looking at a demographic dividend but at a large, educated yet underemployed population,” he said, adding that many professional degrees have effectively become a waiting period for government job preparation rather than pathways to employment.
He pointed out that countries such as South Korea have managed to keep youth unemployment relatively low by focusing on vocational and technical training instead of expanding general academic degrees. “They built specialists through strong vocational systems, while we are producing generalists with certificates,” Kaushik said.
The Union Budget 2026 increased allocation for skilling programmes by about 62% to nearly ₹9,886 crore, but Kaushik believes the scale is still too small compared to the size of the problem. The allocation accounts for less than 0.2% of total government expenditure, which he said is insufficient to address a graduate unemployment rate nearing 30%.
He also highlighted the financial burden on middle-class families, who continue to invest heavily in higher education expecting stable careers in return. However, the job market is no longer absorbing graduates at the same pace.
“Parents are saving for tuition, but the market is no longer buying what those degrees offer. The value of a traditional degree is depreciating faster than most assets in the middle-class portfolio,” he said.
Kaushik added that the issue is not a lack of effort among students, but a structural problem in the education-to-employment pipeline. “We are over-invested in credentials and under-invested in competence,” he said, calling for a stronger focus on practical skills, vocational training and industry-linked education.
India’s youth unemployment data may appear moderate at the headline level, but a closer look reveals a worrying trend — graduates form the largest share of the jobless population, raising concerns about the country’s education system and skill readiness, according to Chartered Accountant Nitin Kaushik.
Kaushik noted that while youth unemployment rates in countries such as France and across the OECD remain high, India faces a different structural problem. “Nearly 66% of the unemployed in India are graduates. In most countries, a degree acts as protection against joblessness, but here it has become a vulnerability,” he said.
According to him, the graduate unemployment rate in India is close to 29%, higher than several emerging and developed economies for the same demographic. This suggests that higher education is not translating into employability, creating what he described as a mismatch between qualifications and market demand.
India is expected to remain one of the youngest countries in the world, with projections showing that about 63% of the population could be in the working-age group by 2031. However, Kaushik warned that the demographic advantage could turn into a liability if job creation and skill development do not keep pace.
“If current trends continue, we are not looking at a demographic dividend but at a large, educated yet underemployed population,” he said, adding that many professional degrees have effectively become a waiting period for government job preparation rather than pathways to employment.
He pointed out that countries such as South Korea have managed to keep youth unemployment relatively low by focusing on vocational and technical training instead of expanding general academic degrees. “They built specialists through strong vocational systems, while we are producing generalists with certificates,” Kaushik said.
The Union Budget 2026 increased allocation for skilling programmes by about 62% to nearly ₹9,886 crore, but Kaushik believes the scale is still too small compared to the size of the problem. The allocation accounts for less than 0.2% of total government expenditure, which he said is insufficient to address a graduate unemployment rate nearing 30%.
He also highlighted the financial burden on middle-class families, who continue to invest heavily in higher education expecting stable careers in return. However, the job market is no longer absorbing graduates at the same pace.
“Parents are saving for tuition, but the market is no longer buying what those degrees offer. The value of a traditional degree is depreciating faster than most assets in the middle-class portfolio,” he said.
Kaushik added that the issue is not a lack of effort among students, but a structural problem in the education-to-employment pipeline. “We are over-invested in credentials and under-invested in competence,” he said, calling for a stronger focus on practical skills, vocational training and industry-linked education.