Employment Trends Among India's Youth: Insights from the Azim Premji University Report

The "State of Working India - 2026," a report by Azim Premji University, highlights significant challenges in employment among young graduates in India. The report reveals that graduate unemployment remains high, with nearly 40% of individuals aged 15 to 25 and 20% of those aged 25 to 29 unable to secure stable salaried jobs within a year of graduation. Despite a 7% increase in access to higher education for the poorest families, the share of young men in education has declined from 38% in 2017 to 34% in late 2024, largely due to the necessity of supporting household incomes.

The Hindu

The report indicates a notable increase in the employed population, rising from 490 million to 572 million post-COVID, with employment rates for men increasing from 71% to 74% and for women from 26% to 34% between 2021-22 and 2023-24. However, the majority of new jobs—40 million out of 83 million added during this period—were created in the agriculture sector, with women constituting a significant portion of this growth. The report emphasizes that migration has become a critical mechanism for youth seeking employment, reflecting uneven economic development across the country.

The Hindu

While the availability of colleges has increased from 29 per lakh youth in 2010 to 45 in 2021, primarily due to private institutions, regional disparities in educational access remain significant. The growth of Industrial Training Institutes (ITIs) has surged by nearly 300% since the 2010s, yet the quality of education, particularly in private ITIs, has declined. The report notes that the share of students in tertiary education from the poorest households rose from 8% to 15% between 2007 and 2017, indicating some progress in educational access.

The Hindu

The report underscores the importance of addressing employment creation for the youth in the coming decade, as this will be crucial for translating India's demographic dividend into economic growth. It highlights that graduates earn approximately twice as much as non-graduates at entry-level positions, with the earnings gap widening over time. Although entry-level salaries for young male graduates have stagnated since 2011, the narrowing gender gap in graduate earnings suggests a shift in the labor market dynamics.

The Hindu

Critics of the current educational and employment landscape argue that despite improvements in access to education, the quality and relevance of training remain inadequate. The report suggests that while institutional growth is evident, it has not kept pace with the rising student population, leading to concerns about the preparedness of graduates for the job market.

The Hindu

• “The pace of employment creation for this young generation in the coming decade will be critical in determining whether India’s demographic dividend can be translated into an economic one,” the report added.” — Azim Premji University Report

The Hindu

• “The most common reason given for withdrawing from education is the need to support household incomes.” — Azim Premji University Report

The Hindu

• “Self employment earnings among women and salaried earnings (for men and women) have largely stagnated.” — Azim Premji University Report

The Hindu

• “Younger cohorts are less concentrated in occupations traditionally linked to their caste or gender,” — Azim Premji University Report

The Hindu