Gaps between education and jobs: New study

A report by the Institute for Competitiveness has thrown light on a troubling gap between what Indian graduates study and the kind of jobs they end up doing. According to the study released recently, only 8.25% of graduates in the country find employment that aligns with their academic qualifications.

The report draws from the Periodic Labour Force Survey (PLFS) and follows the structure of the National Classification of Occupations (NCO). It reveals that a large proportion of graduates are working in jobs that demand much less than their educational training. More than half of them are found in Skill Level 2 roles like clerical positions, machine operations, and retail sales jobs not typically suited for university-educated individuals.

One of the most striking aspects of the report is the extent of overqualification across the workforce. Among those with degrees geared toward Skill Level 4 positions, the most advanced category, nearly 28% are, at present, employed in lower-skill jobs.

Even at Skill Level 3, where one might expect a closer alignment between education and employment, the mismatch is pronounced: Just 8.25% of those trained for such roles have jobs that truly reflect their qualifications.

This persistent misalignment raises serious concerns about the quality and relevance of higher education in the country, as well as how effectively the labour market is absorbing skilled talent.