A lasting problem: How can India address its unemployment crisis?

Experts argue that India's economy has not created enough quality jobs to meet the needs of its growing labour force, particularly for young, educated individuals

Unemployment has long been a daunting issue in India, with no government—past or present— being able to successfully address it. Despite economic growth and numerous promises over the years, millions of young people struggle to find stable employment. But why has unemployment remained such a massive challenge?

 

India’s employment landscape presents a unique set of issues, where agriculture continues to employ nearly 46 per cent of the workforce, especially in rural areas, where many young people lack alternatives. However, these jobs often offer low wages and limited upward mobility. 
 

Many rural youth continue to depend on agriculture, while urban youth, despite better educational qualifications, struggle to find work in industries that can match their skills.

India’s unemployment crisis is also a result of long-standing policy failures. The government's vocational training programmes and syllabi designed for skilling the youth have failed to create the required talent necessary to fulfil the required demand. 

Education is another critical issue. Despite producing 1.5 million engineers annually, up to 80 per cent are deemed unemployable due to skill gaps. A NASSCOM report warns that India could face a shortage of 1.4 to 1.9 million tech professionals by 2026, further exacerbating the disconnect between education and industry demands.

Beyond the statistics lies the emotional toll—disillusioned young men and women, burdened by unfulfilled dreams, sitting idly as their opportunities slip away. The question is not just about how many jobs exist, but whether those jobs provide stability and hope.