Biggest reason for rising unemployment in India; Only 20% employable; What’s wrong with Indian Education system ?

There are multiple undergraduate course in India, as per the 2021-22 data from the Ministry of Education 4.14 Crore students graduated in India. Then why only 20% graduates are employable & what can be the biggest reason for rising unemployment in India that we will look out.

As per the Ministry of Education All India survey on Higher Education 2020-21

Enrollment in higher education increases to 4.14 crore, crossing the 4 crore mark for first time; increase of 7.5% from 2019-20 and 21% from 2014-15
Female enrollment reaches 2 crore mark, increase of 13 Lakhs from 2019-20
Significant increase of 28% in enrollment of SC students and 38% in enrollment of Female SC Students in 2020-21, compared to 2014-15.
Number of Universities has increased by 70, number of Colleges has increased by 1,453, in 2020-21 over 2019-20
Total number of faculty/teachers increases by 47,914 from 2019-20
Significant increase of 32% in OBC Student enrollment and 39% in Female OBC Students, since 2014-15.
Notable increase of 29% in Student Enrollment and 34% in Female Student Enrollment in the North Eastern Region in 2020-21 since 2014-15.

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Biggest reason for rising unemployment in India

Skill

Skill Babu Bhaiya Skill- This is the main barrier in the Indian Education system right now. Generally undergraduate courses duration in India range from 3-4 years. Even though enrollment in higher education crossed a marked of more than 4.14 crore but the question is how many of them are actually employable. Let’s take an example of Engineers, they have invested money & time in 4 years for taking the degree but how many of them are actually employable because they lack the skill set to fit in the corporate sector.

20 % Employable Graduates

Employable graduates in India currently stands at 20% only & that too from the specific sectors (Engineering, MBA, Doctors, Chartered Accountant, Chartered Financial Analyst, Lawyers, Company Secretary & B.Sc., B.B.A. B.Com, etc from the top colleges

Source- The Indian Express

Other category includes (MBA, Doctors, Chartered Accountant, Chartered Financial Analyst, Lawyers, Company Secretary, etc)
1 in every 3 graduates in India is B.A. pass-out.
68.5 % of the students are from the B.A. B.Sc., B.Com., B.A.-Hon, & when it comes to job these are the massive chunk of students who failed to get a job because there is no demand for the job
These 4 disciplines (B.A. B.Sc., B.Com., B.A.-Hon) does not make you job ready & these skills are not that much useful in the corporate sector. In order to do that companies have to spend on training in order to make them job ready & very few companies does that.
From the Engineering-11.8%, others-1.62% & from government sector exams-17%, only 20% graduates are employable.

Engineering (B.E./ B.Tech)

Lets talk about the Engineering sector most career choice of Indian parents as well as students

As per the The Indian Express, Every year 11.8 % Engineers pass out in India- 40 Lakhs (11.8% out of 3.41 crores Under Graduates)
64.67 % Engineering graduates are employable as per the Statista 2023-24 report
Remaining 35 % Engineers opt for the Masters in foreign countries/ MBA/ Civil services
Only 3% engineer graduates get high-quality tech jobs in India with a salary package of 8-10 lakhs & above – Times of India

Unemployment in India

Unemployment Rate in India

One significant problem that still plagues India’s economy is unemployment. Being one of the most populated countries in the world with a diverse labor force, changes in the unemployment rate have a significant impact on the expansion and advancement of the nation. What is India’s current unemployment rate- Forbes India

Year	Unemployment Rate (percent)
2024	6.57 (January 2024)
2023	8.003
2022	7.33
2021	5.98
2020	8.00

Only 8.15% of Indians are graduates, Census data show- The Hindu

What is wrong with India?

Indian Education System

So after 12th as a students we have options to do B.A. B.Sc., B.Com., B.A.-Hon , Engineering, MBA, Doctors, Chartered Accountant, Chartered Financial Analyst, Lawyers, Company Secretary & many other professional courses as well

But out of these courses only 20% graduates will land up in a job because other discipline courses can not offer job & even if these students have the degree but they lack the proper skill set

Structure & Syllabus
Same Thing for Everyone
Rat Race/Competition
Teaching is not a Profession anymore
Reservation System
Getting a job is an ultimate goal
Peer Pressure
Rote Learning/Producing Robots to work in a factory
Education Given is Irrelevant to Job-Market
Over-Commercialization of Indian Education System

How much do we spend on Education?

Much of the family expense is spent on the education of their children. Here, is the chart showing the amount required to raise a child.

Source: Economic Times

An average Indian family spends an amount of 54.75 lakhs for on their children education.
This accounts for almost 46% of the total spending required to raise a child
After all that money and hard work, students end up being unemployed or underemployed especially in the field of engineering.
With the rising inflation this 54.75 Lakhs will be doubled in the upcoming 7 years as the Inflation in Education sector rises with approx 10% so till 2031 this amount will be 1.09 Cr
It is a harsh reality but it is truth. No parents would have thought that raising a child in India will become that much expensive.

How to fix the Indian Education System ?

I believe the government / “people who script the syllabus” has resigned to the fate of the education system and are hoping that it would limp on in the current state. As long as the government is the monopoly in education, the problem will persist. Till then all we can hope for:-

Students aiming to become teachers when they grow up.
Graduates who are not only intelligent and brilliant but also willing to take responsibility and work towards the betterment of the system.
Redefining our industrial base.
Stop being service providers as a country and start becoming producers.
Stop complaining and start acting.

I hope you enjoyed it.

What’s your take on this? What could be the best possible solution for the one biggest problem of India

Comment down below !

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