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BENGLURU, KARNATAKA: A new report titled “State of Working India 2026” by Azim Premji University has raised concerns over a worsening employment situation among young graduates in the country. According to the findings, nearly 40% of graduates aged 15–25 are unemployed, highlighting a significant challenge in absorbing educated youth into the workforce.
The report notes that despite higher levels of education, a large share of unemployed youth today are degree holders. In fact, around 67% of India’s unemployed youth are graduates, pointing to a growing disconnect between educational attainment and job availability. Data also indicates that over one crore graduates aged 20–29 were without jobs in recent years, reflecting the scale of the issue.
One of the key concerns identified is the mismatch between aspirations and opportunities, where young individuals with qualifications are unable to find suitable roles. The report also points out that only a limited proportion of graduates secure stable, salaried employment shortly after completing their education, raising questions about job quality and long-term career prospects.
The study further highlights structural challenges such as slow job creation in key sectors like manufacturing and services, even as more youth move away from agriculture. Experts warn that India’s demographic advantage could weaken after 2030 if employment generation does not keep pace with the expanding workforce.
Additionally, the report sheds light on income disparities, noting that a large percentage of young workers earn relatively low wages, with a significant gender gap in earnings. It calls for targeted policy interventions to improve job creation, strengthen skill alignment, and ensure that education translates into meaningful employment opportunities for the country’s youth.
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