Only 8.25 per cent of graduates are working in jobs that match their qualifications, according to a NITI Aayog report. According to the ‘Reimagining Skilling for Viksit Bharat@2047’ report, there is a clear gap …

Only 8.25 per cent of graduates are working in jobs that match their qualifications, according to a NITI Aayog report. According to the ‘Reimagining Skilling for Viksit Bharat@2047’ report, there is a clear gap between what students study in college and what the job market actually needs. The report says outdated curricula, generic degree programmes and limited industry exposure are preventing degrees from consistently translating into employability.The report, released in August 2026, calls for a shift in India’s skilling and higher education ecosystem towards industry-linked learning, apprenticeships, work-integrated degrees and skills-first hiring, including removing degree requirements for jobs where a formal degree is not essential.40% of India’s graduates cannot find jobs, few get secure salaried jobs within one year: ReportOnly 8.25 per cent graduates in qualification-aligned jobsNITI Aayog identifies a “fundamental disconnect” between what is taught in higher and technical education institutions and what the labour market demands. It says curricula in most institutions remain outdated and misaligned with changing industry requirements, meaning degrees, diplomas and certificates do not consistently translate into employability.Alongside this, the report cites an educated unemployment rate of 13 per cent among all graduates and 20.4 per cent among graduate women, compared with a national unemployment rate of 3.2 per cent.The report links the problem partly to the concentration of students in generic undergraduate programmes. Of the 3.4 crore students enrolled in undergraduate programmes, 1.13 crore are enrolled in BA alone, while the combined enrolment in BA, BSc and BCom exceeds 2 crore.NITI Aayog says many students pursue these degrees primarily to retain eligibility for government jobs. Between November 2024 and July 2025, 1.86 crore applications were submitted for just 55,000 government posts, according to the report.Nearly half of workforce contemplating career move in next six monthsThe report argues that this imbalance makes it necessary to rethink higher education around job-linked specialisations rather than generic degree pathways. It proposes applied options such as BA Hospitality, BCom Analytics and BSc Applied Technology, alongside greater industry participation.Students cite lack of practical and industry exposureAccording to data from the Ministry of Skill Development and Entrepreneurship’s State of Skills Survey 2024, cited in the NITI Aayog report, 80 per cent of higher-education students identified lack of practical experience and industry exposure as a major pain point. The survey covered 2,795 undergraduate students.The report says work-integrated learning is failing to consistently bridge education and employment. Internships and apprenticeships are often superficial or tokenistic, with students limited to observation and receiving unclear learning outcomes or inadequate guidance. Without demonstrable skills or experience, students find it difficult to convince employers that they are job-ready.The problem extends beyond students. 47 per cent of formal workers surveyed identified lack of prior work experience and internships as the top challenge in finding new jobs.The report also records that 34 per cent of students cited lack of skills and 18 per cent cited lack of interview preparation among the key problems they experienced while pursuing their degrees.Global Skills Park Bhopal to Train 10,000 Youth Annually in Future: CM Dr. YadavIt further notes that practical courses in higher education are sometimes taught by faculty without sufficient industry expertise. For instance, the report gives the example of commerce teachers delivering digital marketing content. Limited faculty capacity and inadequate laboratory infrastructure can consequently leave students with outdated or superficial exposure.Generic degrees, weak industry linksNITI Aayog says the issue is not simply a lack of courses, but the way education and skilling are connected to employment.It recommends moving away from generic degrees towards applied, industry-aligned specialisations, while significantly scaling up work-integrated and Apprenticeship Embedded Degree Programmes (AEDP). These programmes would allow students to graduate with demonstrable work experience rather than only academic credentials.The report also recommends more flexible formats, including modular, part-time, hybrid and earn-while-you-learn programmes, allowing students to combine education with work.Under its second core reform, NITI Aayog proposes stronger public-private partnerships and private-sector engagement in technical and higher education. These partnerships could help modernise curricula, provide job-linked learning and make programmes more closely connected to employment outcomes.The report also points to the potential of dedicated skilling hubs within universities and colleges, where industry partners could provide laboratories and equipment, train faculty and offer job-ready modules. Such hubs could also facilitate credited internships, apprenticeships and live industry projects.98% of Indian employers say assessing English while hiring improves workplace efficiency: ReportSkills-first hiring; removal of degree filtersA major recommendation in the report is to change how employers recruit.The report says policy rules in several sectors continue to prioritise formal degrees over demonstrated skills, particularly in government and public-sector recruitment. Degree-based eligibility norms, it argues, restrict skills-based hiring and reinforce credential-driven pathways. This can also weaken incentives for hands-on teaching and practical training.NITI Aayog proposes a “Skills-First Hiring Mandate” for roles where a degree is not essential. Under the proposed model, employers would select candidates based on demonstrated capabilities and relevant skills rather than automatically filtering candidates based on degrees.

Source: Deccan Herald