Indus Valley Times

BENGALURU, MAR 17 : Nearly 40% of young graduates in India are unemployed, a figure that has remained largely unchanged for four decades, according to the State of Working India 2026 report by Azim Premji University. The report shows that unemployment among graduates aged 15 to 29 remains persistently high, with about 40% of those aged 15 to 25 and 20% of those aged 25 to 29 unable to find work.

This is not a new trend. The report states that graduate unemployment has “remained more or less unchanged between 35 and 40%” from 1983 to 2023, even as the number of graduates has increased significantly over time.

Even when work is found, stable employment is uncommon. Tracking young graduate men over a year, the report finds that about half can find some form of work, but very few secure permanent salaried employment. “Among graduates, only about 7% find permanent salaried employment within a year,” the report states.

This gap between education and employment comes at a critical time for the country. India’s demographic advantage, driven by its large young population, is nearing its peak. The report estimates that the share of the working-age population will begin to decline after 2030. With around 367 million people aged 15 to 29, the ability to create enough jobs in the coming years will determine whether this demographic dividend translates into an economic one.

The report estimates that the share of the working-age population will begin to decline after 2030.

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“The extent to which this large, increasingly educated and aspirational cohort is productively absorbed into the labour market will determine whether this massive… demographic dividend translates into an economic dividend,” the report notes.

At the same time, financial pressures are affecting education patterns. The share of young men in education has declined from 38% in 2017 to 34% in late 2024, and a growing number are leaving studies to support their families. The report highlights that this reason increased from 58% in 2017 to 72% in 2023 among young men aged 15 to 24.

While more young people are entering the workforce, the type of work available raises further concerns. In the period after COVID, employment increased, but much of this growth was concentrated in agriculture. Of the 83 million jobs added between 2021–22 and 2023–24, about 40 million were in agriculture.

Earlier trends had shown young workers moving away from agriculture towards manufacturing and services, but recent data shows a shift in this pattern.

Taken together, the findings point to a widening gap between rising education levels and limited job opportunities at a time when the country’s demographic window is beginning to narrow.

-PTI