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A report by Azim Premji University titled State of Working India 2026 highlights a significant trend in India’s labour market: about 67% of unemployed youth aged 20–29 were graduates in 2023.
Key Findings
1. Sharp rise in graduate unemployment
- 2023: Around 1.1 crore unemployed youth were graduates (67%)
- 2004: About 30 lakh unemployed youth were graduates (32%)
This indicates that the share of graduates among unemployed youth has more than doubled in two decades.
2. Rapid expansion of higher education
- Graduates among youth (20–29 years):
- 2004: 10% (1.9 crore)
- 2023: 28% (6.3 crore)
India has significantly expanded access to higher education, producing many more graduates.
3. Job creation lagging behind graduate supply
Between 2004 and 2023:
- Around 50 lakh graduates were added annually
- Only 28 lakh graduate jobs were created each year
- Out of these, only 17 lakh were salaried jobs
The report notes that graduate employment has not kept pace with the growing supply of graduates.
Reasons for High Graduate Unemployment
The report identifies several factors:
- Job creation not keeping pace with education expansion
- Skill mismatch and employability concerns
- Lack of work experience among young graduates
- Youth delaying job entry, as households today have slightly better income levels than before.
