Only 26 of every 100 young Indian graduates have salaried jobs; just 4 enjoy basic employment benefits: Report

Despite earning a college degree, only a quarter of young Indians are able to secure salaried employment, while an even smaller fraction have jobs that offer basic workplace protections, highlighting the challenge of creating quality employment in the country.

According to a Bloomberg News analysis of India's Periodic Labour Force Survey (PLFS) unit-level data, only 26 out of every 100 graduates aged 15-29 in 2025 have regular salaried jobs. Of these, just four have the complete package of a written employment contract, paid leave and social security benefits, indicating that formal employment remains out of reach for most educated youth.

The analysis paints a broader picture of the employment landscape for young graduates. Out of every 100 graduates, 50 are employed, 15 are unemployed and actively seeking work, while 35 are outside the labour force.

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Among the employed, salaried workers account for the largest share at 26. However, another 11 graduates work as unpaid family helpers, 10 are self-employed, and three are engaged as casual workers or employers in household enterprises. The data suggests that while employment opportunities exist, many are outside the formal sector or lack adequate job security.

A key finding of the Bloomberg News analysis is the quality of salaried employment. Although 26 graduates have regular salaried jobs, only four receive the benefits generally associated with formal employment—employment contracts, paid leave and social security coverage. The remaining salaried workers lack one or more of these protections, underscoring the prevalence of informal employment even among graduates.

The data also reveals a significant number of educated young people outside the workforce. Of the 35 graduates not in the labour force, 20 are engaged in domestic duties—all of them women—while 14 are pursuing higher education and one is in vocational training or other activities.

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The findings highlight the persistent challenge of female labour force participation, with domestic responsibilities continuing to keep many educated women away from paid employment.

India has expanded access to higher education over the past decade and continues to produce millions of graduates annually. However, the Bloomberg News analysis suggests that the availability of secure, formal jobs has not kept pace with the growing pool of educated workers.

The figures underscore that the challenge is no longer limited to job creation alone but also extends to improving the quality of employment. As policymakers seek to leverage India's demographic dividend, expanding formal employment with social security, written contracts and paid leave is likely to remain central to ensuring that higher education translates into meaningful economic opportunities for young graduates.

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