[Answered] The changing employment landscape reveals a disconnect between education and jobs in India. Examine the structural reforms needed to enhance employability, boost productivity, and foster inclusive economic growth.

Introduction

Despite India’s demographic dividend and educational expansion, youth unemployment and unemployability persist. Bridging the education-employment disconnect through systemic reforms is crucial for productivity and inclusive, future-ready economic growth.

The Education-Employment Disconnect: A Critical Overview

1. Youth unemployment is structural: According to the India Employment Report 2024 (ILO-IHD), youth constitute 83% of the unemployed.
2. Education without employability: Over the past two decades, unemployment among those with secondary or higher education has doubled.
3. Low job readiness: The Economic Survey 2023-24 indicates that only 50% of graduates are job-ready.
4. Skill mismatch: 75% of youth lack basic digital skills, including email handling and spreadsheet use.
5. AI-driven disruption: As per the WEF Future of Jobs Report 2025, 92 million jobs could be displaced by 2030, even as 170 million new ones emerge — highlighting the need for agile skilling.

Informality and Underemployment in the Labour Market

1. 90% of the Indian workforce is informal, and regular salaried jobs have declined since 2018.
2. Rise of contract work offers flexibility but lacks social protection, as reflected in EPFO trends.
3. EPFO data (March 2025): 18–21 age group forms 18–22% of new enrolments — indicating increased formalisation, but without clarity on wage security and long-term growth.

Key Structural Reforms Needed

1. Industry-Academia Linkages: Mandate formal partnerships between higher education institutions and industry. Examples: IITs’ collaboration with TCS, Infosys; the German Dual Vocational Training model.
2. Accountability for Placements: Introduce job-linked accreditation systems for universities and colleges. Promote outcome-based education (OBE) frameworks already adopted by NBA-accredited engineering colleges.
3. Curriculum Modernisation and Soft Skills: Universalise Tinker Labs, Idea Labs for experiential learning. Embed critical thinking, communication, and foreign languages into all streams — echoing NEP 2020 goals.
4. Global Employability Strategy: Develop skilling programmes for international labour markets in health, eldercare, logistics, etc.  Example: EU’s Link4Skills Project with India’s International Institute of Migration and Development.
5. Indian Education Services: Establish an elite Indian Education Services cadre to attract talent into education management and policy. Aligns with the idea of professionalising educational leadership, similar to the UK’s National College for Teaching and Leadership.
6. Opening Academia to Industry Experts: Allow lateral entry of industry professionals as adjunct faculty. Example: IIT-Madras’s “Professors of Practice” model enhancing practical exposure.
7. Leveraging Digital Ecosystems and Labour Reforms: Expand Skill India Digital Platform, NSDC’s tie-ups with Google, AWS. Implement Code on Wages and Code on Occupational Safety to improve labour conditions and productivity.

Conclusion

To convert India’s demographic potential into an economic dividend, systemic educational reforms, demand-responsive skilling, and institutional innovation are imperative to bridge the education-employment gap and enable inclusive growth.