{"id":1916,"date":"2020-07-28T11:47:22","date_gmt":"2020-07-28T11:47:22","guid":{"rendered":"https:\/\/idronline.org\/2020\/12\/23\/so-many-degrees-so-few-jobs\/"},"modified":"2025-11-10T08:06:29","modified_gmt":"2025-11-10T02:36:29","slug":"so-many-degrees-so-few-jobs","status":"publish","type":"post","link":"https:\/\/idronline.org\/kn-in\/so-many-degrees-so-few-jobs\/","title":{"rendered":"So many degrees, so few jobs"},"content":{"rendered":"

By now, it is common knowledge that India’s nationwide lockdown has disrupted businesses across all sectors. We, at TechnoServe, expect that states will enforce partial lockdowns to contain re-emergences of community infection at different points of time. This ‘start-stop’<\/em> system in the Indian economy will continue until the pandemic is contained through mass vaccination or improved disease preparedness and response. The need for an interim start-stop economy will prevail for 18-24 months, and is expected to result in an economic slowdown through 2020-22.1<\/a><\/p>

Graduates—who have historically struggled<\/a> in India’s job market—will face heightened challenges during this period. Based on our projections<\/a>, additional incumbent graduates will be subject to unexpected terminations or pay freezes, while those entering the workforce between 2020 and 2022 will see fewer job opportunities. However, before we dive into the details of COVID-19’s expected impact on graduates, it is important to understand the dynamics of India’s job market before the onset of COVID-19.<\/p>

Related article: Managing your career during COVID-19<\/strong><\/a><\/p>

\"What<\/a><\/div>

A snapshot of graduate employment pre-COVID-19 <\/strong><\/h3>

As of January 2020, we estimate that there are 120 million individuals<\/a> with graduate degrees or above in India. Around 74 million of these graduates are employed, with approximately 40 percent in the formal sector and 60 percent in the informal sector. The government, private sector, and the education sector are the largest formal sector employers, with roughly 11 million, 10 million, and eight million graduates, respectively. Within the private sector, the largest employers are financial services and information technology enabled services<\/a>, which are estimated to have approximately three million and two million graduates each.<\/p>

Although the total number of graduates has grown<\/a> in recent years, higher education has not guaranteed better employment outcomes. In fact, in 2019, graduates faced an unemployment rate of 17 percent<\/a>, which is more than double the national average<\/a>. The situation is worse for female graduates, who faced a 35 percent unemployment rate<\/a> between May and August 2019.<\/p>

The high unemployment rates reveal a core mismatch between college training and skills sought by employers. Graduates often lack requisite hard and soft skills required in the workplace due to poor education standards, coursework that focuses too heavily on theoretical subjects, and limited internship opportunities. This mismatch has become more pronounced in recent years, as businesses rapidly shift towards digital solutions. Graduates without 21st century skills, such as digital literacy, find it increasingly hard to secure a job<\/a>.<\/p>

These employment challenges are amplified among certain groups:<\/p>