2. NITI Aayog said this group, along with women, needs affordable or subsidised training and financial support, while skilling programmes should be linked to local demand, self-employment opportunities and emerging sectors.
3. One of the concerns highlighted by the report is the weak link between formal education and employment. Only 8.25 per cent of graduates are employed in roles aligned with their qualifications, it said.
4. Limited practical exposure and industry-aligned training continue to affect employability even among formally educated young people.
5. The report said students from low-income households often cannot afford additional paid skilling alongside college expenses and private tuition. After graduation, some take up whatever work provides a stable income, even when it is low-paying, while others struggle to enter the workforce and become NEET.
6. It pointed out how the information gap about the right courses and training programmes plays a major role in aggravating these challenges for youth.
7. The think tank said that about 47% of women, 43% of the youth are NEETs and 36% of higher-education students, 52% of formal workers and 55% of informal workers do not pursue skilling, citing lack of awareness of the right programmes as one of the top three reasons for it.
8. The report identifies five barriers that consistently shape skilling outcomes across segments, regardless of age, gender, or employment status. These barriers relate to information asymmetry and value perception, access, funds, learning and delivery models, and structure and governance.
9. The report highlights that over 7.67 crore individuals have been trained since 2014-15. The Union Budget for FY 2025- 26 allocated ₹34,000 crore in skilling-related expenditure across multiple Central Ministries.
10. The report said that these efforts are complemented by several State-led initiatives (for e.g., Tamil Nadu’s Naan Mudhalvan, Maharashtra’s Mahaswayam, amongst others) along with capability building, strengthening skilling ecosystems, and investing in infrastructure.
(Infographic source: AI generated)
11. However, the report says that outcomes remain uneven. Beyond incremental efforts, the report suggests a transformative approach to drive needed outcomes, and that increasing spending and training numbers alone may not be enough without stronger links between education, skills and actual employment.
What are the suggestions proposed by the report?
1. To ensure the highest impact, the report organises India’s workforce landscape and learners into five segments spanning: Schooling, tertiary education, formal and informal work, not in education, employment and training (NEET) youth, and women, together accounting for ~60 crore citizens.
2. NITI Aayog has proposed moving skilling further into the school system rather than treating it as an option after formal education.
3. It suggested universal General Employability and Entrepreneurship Skills from Class 6 to Class 12, along with structured vocational pathways, or Kaushal Tracks, from Class 9. The tracks would provide deeper vocational specialisation based on local and national demand.
4. The report noted that fewer than one in 12 secondary schools currently offer vocational subjects, despite the National Education Policy 2020 and National Curriculum Framework providing for greater integration of vocational education and employability skills from Class 6.
5. For Classes 10 and 12, NITI Aayog has suggested including vocational subjects in the board subject scheme with equal weightage and allowing state boards to accept the revised scheme for certification.
6. It has also proposed continuing General Employability and Entrepreneurship Skills as a separate subject for students in Classes 11 and 12.
7. The recommendations extend beyond schools. For higher education, the report called for a shift from generic degrees towards applied, industry-aligned specialisations, along with greater use of apprenticeships and work-integrated degree and diploma programmes. It also proposed flexible, modular and earn-while-you-learn options.
8. Apprenticeships have been identified as another missing link between education and employment. While schemes such as the National Apprenticeship Promotion Scheme and National Apprenticeship Training Scheme have expanded access, NITI Aayog said participation remains uneven and opportunities are fragmented.
9. It suggested expanding apprenticeship opportunities through incentives for MSMEs and creating a unified platform to make credible opportunities easier to find.
10. The report also called for greater focus on sectors expected to generate demand, including green industries and electric vehicles, while providing reskilling for workers in declining occupations. It said training should increasingly be linked to measurable employment outcomes rather than participation alone.
BEYOND THE NUGGET: The paradox of educated unemployment
1. As per NITI Aayog, educated unemployment in the country remains high, with 13% among all graduates and 20.4% of graduate women unemployed, far above the national unemployment rate of 3.2%.
2. Compounding this is the overwhelming inclination toward generic degree programmes with weak job linkages, NITI Aayog said.
3. Higher unemployment among educated youth was also flagged in the State of Working India report by Azim Premji University released earlier this year.
4. The report showed that unemployment among graduates below the age of 25 rose from 35% in 1983 to 39% in 2023, and unemployment among graduates between the ages of 25 and 29 also rose from 12% in 1983 to 20% in 2023.
Post Read Question
Which of the following factors can contribute to educated unemployment?
1. Skill–job mismatch
2. Preference for certain types of employment
3. Inadequate practical exposure
4. Geographical mismatch between workers and employment opportunities
5. Information asymmetry regarding available jobs and training
Select the correct answer using the code given below:
(a) 1, 2 and 3 only
(b) 1, 3, 4 and 5 only
(c) 1, 2, 3, 4 and 5
(d) 2 and 4 only
Answer: (c)
(Sources: 8.7 crore young Indians out of school and work: NITI Aayog’s plan to fix the gap, ‘Only 8.25% graduates work in jobs matching their qualifications’: NITI Aayog, The other ‘NEET’ that India’s policymakers need to address)
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Over 90% of graduates employed in roles not aligned with their qualifications, a NITI Aayog report says. (Image source: AI generated) 
(Infographic source: AI generated)
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