Now Reading: India’s education-job mismatch threatens demographic dividend
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India’s education-job mismatch threatens demographic dividend
India has rapidly expanded school and higher education, now enrolling 24.72 crore students in schools and 4.50 crore in higher education, but faces a severe employability crisis. Graduate unemployment stands at nearly…
India has rapidly expanded school and higher education, now enrolling 24.72 crore students in schools and 4.50 crore in higher education, but faces a severe employability crisis. Graduate unemployment stands at nearly 40% for those aged 15-25 and 20% for ages 25-29, according to the 'State of Working India 2026' report. The overall unemployment rate for youth aged 15-29 declined to 9.9% in 2025 as per the PLFS Annual Report 2025.
School access is near-universal at primary level (90.9% enrolment ratio), but drops sharply to 58.4% at higher secondary. Dropout rates rise from 1.8% at preparatory stage to 7% at secondary stage. In higher education, the gross enrolment ratio (GER) reached 30%, with female GER at 31.2% and a gender parity index of 1.08, reflecting 42.2% growth in female enrolment since 2014-15.
The core policy challenge, according to a Business Standard editorial, is no longer just enrolling students but creating a complete pathway from foundational learning to productive employment and lifelong reskilling. This requires shifting public spending toward foundational learning, modern skill development, and stronger Centre-State cooperation.
Indian Opinion Analysis
The 40% graduate unemployment rate for the 15-25 age group signals that India's demographic dividend is at risk of becoming a demographic liability. The gap between school expansion (68.1% government schools but only 49.2% enrolment) and job creation highlights a structural mismatch: the education system produces graduates faster than the economy generates productive roles. The NEP 2020's focus on vocational education and the Skill India Mission are existing responses, but their impact remains limited. The upcoming Union Budget and state-level implementation of NEP 2020 will be key to watch for concrete steps on skilling and job-linked training.
Source: drishtiias.com
This story was synthesised by AI from the source linked above.
