The employment paradox: Skilling schemes need more realistic streamlining

India suffers from a curious paradox of having a fairly high unemployment rate among people aged between 15 and 29 years but low employability. The second report on India’s Graduate Skill Index, brought out by Mercer-Mettl, shows employability has dropped — from 44.3 per cent in 2023 to 42.6 per cent in 2024. This is a chronic problem that the government has sought to address through the Skill India Mission and, more recently, an internship scheme that seeks to equip 10 million young people over five years by providing a stipend for a 12-month internship at one of India’s top 500 companies. A granular look at the employability conditions offers clues to streamlining and reorienting programmes to maximise the efficacy of government spending on this account.

 

The Graduate Skill Index offers pointers. First, employability has fallen through all college tiers — I, II & III — over the two years of the study. Second, more male graduates (43.4 per cent) are employable than female graduates (41.7 per cent). Third, employability levels are better for non-technical roles, although this metric has seen a sharp drop from 48.3 per cent in 2023 to 43.5 per cent in 2024. Fourth, graduates come up short on soft skills. Though more than half were employable in terms of communication, critical thinking and leadership, the metrics on learning agility (46 per cent), problem-solving and analytical ability (44.6 per cent), and creativity (44.3 per cent) were notably low. As these findings show, the problem isn’t a shortage of people with qualifications but those with skills relevant for the emerging demands of the economy.

 

Last year, a study by TeamLease showed that India produces a staggering 1.5 million engineers every year, but only 45 per cent meet industry standards. Ironically, 70 per cent of the current Gen Z students aspire to work in information-technology (IT) companies. Yet, according to industry body Nasscom, the demand-supply gap for digital talent could widen from the current 25 per cent to almost 30 per cent by 2028. The escalating demand from artificial intelligence (AI), electric vehicles, semiconductors, and consumer electronics will make the challenge of employability even more acute. This data suggests that though internships and apprenticeships are helpful, the employability challenge begins with the education system. Remedying this demands more than just rules and regulations but a creative focus on training teachers to deliver a relevant syllabus, and altering the examination system to place a premium on critical thinking rather than rote learning.

 

Vital to this entire exercise is a realistic understanding of the need for a sound grounding in the English language, especially for students of medicine, engineering, and science. Adopting this policy would render redundant controversies over the three-language formula embedded in the Centre’s New Education Policy. The reality is that English has emerged as the language of international business. Even France and Germany, once notable for language chauvinism, have been placing significant emphasis on teaching English in their education systems. Both China and the emerging “plus one” hub of Vietnam have upped the emphasis on English in schools. For better or worse, English has been India’s bridge language and this colonial legacy also played a role in the back office and ITeS (IT-enabled services) revolutions, which did much to bootstrap the economy to a higher growth path. India should not waste this natural advantage.