As per the Periodic Labour Force Survey of 2024, the unemployment rate among individuals with secondary education and above was 7.1 percent, the highest among other levels of education. Although the unemployment rate within this category fell from the previous financial year. Potential of the education sectorIndia's education sector is estimated to be valued at around 117 billion U.S. dollars, and it is expected to grow to 225 billion U.S. dollars by 2025. It is a growing trend for many young Indians to attain two or three degrees in the hope of attaining a job. One of the largest young populations in the world presents a unique opportunity for the country in the education sector. Educated unemployed Youth unemployment in India was over 15 percent in 2023. This is despite the abundance of highly educated professionals. The data suggests a sharp mismatch between the skills of the labor force and job creation. The lack of jobs in the non-farm sector for the newly graduated young population is a major cause of worry for the Indian economy.

In 2025, the Masters of Business Administration domain had the highest employability rating among degree types in India at about ** percent, an increase from the previous year. The polytechnic domain had the lowest employability rate of around ** percent. What is employability? Employability refers to attributes that make an individual gain and maintain employment. This may include job-specific or soft skills. Higher employability is considered a precondition for achieving a higher employment rate. Although employability in India has increased to over ** percent from ** percent over a decade ago, there has remained a critical skill mismatch between education and skills. In other words, Indian graduates have been facing a disconnect between what is taught at colleges and what the industry demands. Enhancing employability through skill development Government initiatives like the National Skill Development Corporation and Pradhan Mantri Kaushal Vikas Yojana aim to promote skill development in India. Public-private partnerships (PPP) have also been instrumental in making skill development initiatives effective in India. For example, TCS has partnered with educational institutions to provide vocational training in digital literacy and soft skills. Other industry giants like Samsung and IBM are planning to launch special training programs in artificial intelligence (AI) and machine learning (ML) in collaboration with the National Skill Development Corporation (NSDC).