NITI Aayog flags graduate job mismatch, calls for overhaul of skilling ecosystem

NITI Aayog has released a report titled 'Reimagining Skilling for Viksit Bharat' that underscores a fundamental disconnect between India's higher education system and labour market demands. The report notes that outdated curricula and a lack of alignment with industry needs mean that degrees often fail to translate into employability.

Citing data from the Economic Survey 2024-25, the report reveals that only 8.25% of graduates are employed in roles that match their qualifications. Over 90% of graduates work in positions unrelated to their field of study. Educated unemployment stands at 13% among all graduates and 20.4% among graduate women, significantly higher than the national unemployment rate of 3.2%.

A major factor is the overwhelming preference for generic degree programmes. Of the 3.4 crore students enrolled in undergraduate courses, over 2 crore are pursuing B.A., B.Sc., or B.Com degrees, which have weak direct job linkages. The report advocates for redesigning these courses into industry-aligned applied specialisations.

The report also highlights that 8.7 crore individuals aged 15-29 fall under the NEET category (Not in Education, Employment or Training). A clarification issued later noted that this category refers to those not seeking employment and should not be read as a measure of joblessness.

Social stigma surrounding vocational training and ITI programmes remains a significant barrier. The report notes that these pathways are often perceived as 'second-tier' options, discouraging youth from pursuing them. Lack of awareness about the right programmes is also a major constraint, with 47% of women and 43% of youth citing it as a top reason for not pursuing skilling.

Salary data cited in the report shows a clear financial benefit to skilling. A generic undergraduate with skilling earns an average starting salary of Rs 29,000 per month, compared to Rs 22,000 for those without. This difference compounds to a total income gap of Rs 9.7 lakh over 10 years.

The report calls for a decisive shift from supply-driven skilling programmes to demand-driven, outcome-linked models backed by industry. It recommends scaling apprenticeships, establishing PPP skilling universities, and providing academic autonomy to institutions to update their offerings based on local demand.