India’s employment landscape is facing a deepening crisis among its youth, with a new study pointing to persistently high unemployment levels despite decades of expansion in education.
The findings, published in the ‘State of Working India 2026’ report by Azim Premji University, underline a growing mismatch between rising educational attainment and the availability of stable jobs.
Unemployment stands at nearly 40% for the 15 to 25 age group and 20% for those aged 25 to 29 despite the fact that educational enrolment has risen sharply for over four decades, a recently released report by the Azim Premji University revealed.
The ‘State of Working India 2026‘ report highlights a widening gap between education and job creation. India’s youth population, aged 15 to 29, stands at 36.7 crore, accounting for a third of the working-age population. The report notes that 26.3 crore of this cohort are not in education and constitute the potential workforce.
With a median age of 28 years, India is among the youngest economies globally, but this demographic dividend will begin to decline after 2030, making the pace of job creation in the coming decade critical.
The report states that 1.1 crore out of 6.3 crore graduates aged between 20 and 29 were unemployed in 2023. Unemployment stands at nearly 40% for the 15-to-25 age group and 20% for those aged 25 to 29. While 50% of young male graduates find employment within a year of reporting as unemployed, only 7% secure permanent salaried work. Further, it adds that graduate unemployment rates have remained largely unchanged between 35% and 40% since 1983.
Educational enrolment has risen sharply over four decades, bringing India’s 28% tertiary enrolment rate on par with countries of similar per capita income. Among young women, enrolment increased from 38% in 1983 to 68% in 2023, while male enrolment rose from 49% to 73% in the same period. Scheduled Caste (SC) enrolment increased from 11% to 26%, and Scheduled Tribe (ST) enrolment from 8% to 21% between 2011 and 2023, though both remain below the national average.
However, the report identifies a recent reversal in male enrolment. The share of young men in education fell from 38% in 2017 to 34% in late 2024. The data indicates that 72% of these men withdrew from education because of the need to support their household incomes.
The findings, published in the ‘State of Working India 2026’ report by Azim Premji University, underline a growing mismatch between rising educational attainment and the availability of stable jobs.
Unemployment stands at nearly 40% for the 15 to 25 age group and 20% for those aged 25 to 29 despite the fact that educational enrolment has risen sharply for over four decades, a recently released report by the Azim Premji University revealed.
The ‘State of Working India 2026‘ report highlights a widening gap between education and job creation. India’s youth population, aged 15 to 29, stands at 36.7 crore, accounting for a third of the working-age population. The report notes that 26.3 crore of this cohort are not in education and constitute the potential workforce.
With a median age of 28 years, India is among the youngest economies globally, but this demographic dividend will begin to decline after 2030, making the pace of job creation in the coming decade critical.
The report states that 1.1 crore out of 6.3 crore graduates aged between 20 and 29 were unemployed in 2023. Unemployment stands at nearly 40% for the 15-to-25 age group and 20% for those aged 25 to 29. While 50% of young male graduates find employment within a year of reporting as unemployed, only 7% secure permanent salaried work. Further, it adds that graduate unemployment rates have remained largely unchanged between 35% and 40% since 1983.
Educational enrolment has risen sharply over four decades, bringing India’s 28% tertiary enrolment rate on par with countries of similar per capita income. Among young women, enrolment increased from 38% in 1983 to 68% in 2023, while male enrolment rose from 49% to 73% in the same period. Scheduled Caste (SC) enrolment increased from 11% to 26%, and Scheduled Tribe (ST) enrolment from 8% to 21% between 2011 and 2023, though both remain below the national average.
However, the report identifies a recent reversal in male enrolment. The share of young men in education fell from 38% in 2017 to 34% in late 2024. The data indicates that 72% of these men withdrew from education because of the need to support their household incomes.

The Crossbill News Desk
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