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For millions of young Indians, a degree represents the promise of a better future. Yet, data from the governmentโs Periodic Labour Force Survey (PLFS) annual reports raise an important question: are educational qualifications translating into sufficient employment opportunities?
Figures from the 2022โ23, 2023โ24 and 2025 reports suggest that unemployment is higher among people with advanced educational qualifications than among those with lower levels of education. While the data point to a growing challenge for qualified jobseekers, differences in survey methodology and definitions must be considered when comparing the figures across years.
| Highest level of education completed | 2022โ23 | 2023โ24 | 2025 |
| Not literate | 0.20% | 0.20% | 2.30% |
| Literate and up to primary | 0.50% | 0.60% | 2.80% |
| Middle | 1.70% | 1.60% | 4.60% |
| Secondary | 2.20% | 1.90% | 5.50% |
| Higher secondary | 4.60% | 4.40% | 9.30% |
| Diploma/certificate course | 12.20% | 12.50% | 13.80% |
| Graduate | 13.40% | 13.00% | 22.30% |
| Postgraduate and above | 12.10% | 12.40% | 24.70% |
Sources: Ministry of Statistics and Programme Implementation (MoSPI), PLFS Annual Reports 2022โ23, 2023โ24 and 2025
The figures show a marked difference in unemployment across educational levels. In 2022โ23 and 2023โ24, graduates and diploma holders experienced substantially higher unemployment rates than people with lower levels of education. The figures listed for 2025 show an even sharper contrast, with unemployment at 22.3 per cent among graduates and 24.7 per cent among postgraduates and above.
These numbers raise concerns about whether the labour market is generating enough opportunities for qualified jobseekers. However, they should not be interpreted in isolation or as definitive evidence of a year-on-year deterioration without first confirming that the figures use comparable age groups, definitions and survey methods.
Prof Sandeep Shukla, Director of IIIT Hyderabad, stresses the importance of understanding how employment is defined in the survey.
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โThe first thing is to read the report carefully to understand what they mean by employed,โ Shukla says.
The PLFS classifies people as employed according to specified criteria covering economic activity, including self-employment and informal work. Its unemployment rate measures the proportion of unemployed people within the labour force, not the share of the entire population without work. People who are not working and have stopped looking for a job may fall outside the labour force, while those classified as employed may not necessarily earn a living wage or have secure employment.
Shukla argues that the gap between educational qualifications and available opportunities is a particular concern for graduates. A school-leaving qualification may not be enough to secure the professional work many aspire to, while a degree or postgraduate qualification does not guarantee stable, well-paid employment. Some graduates take low-paid or insecure jobs, while others continue searching for positions that better match their skills and expectations.
The mismatch is also visible in sector-specific recruitment. Engineering graduates seeking jobs in the information technology sector, for instance, compete for a limited number of entry-level positions. However, hiring trends in individual sectors should not be mistaken for a measure of graduate employment across the entire country.
For Shukla, addressing the challenge requires a stronger emphasis on entrepreneurship and practical problem-solving. Schools and colleges, he suggests, should encourage students to develop technology-based solutions to local needs in areas such as agriculture, local administration, supply forecasting and business digitalisation, including the use of artificial intelligence. Although individual ventures may remain small, collectively they could generate employment for people with different levels of education.
The broader issue, therefore, is not simply how many degrees India awards, but whether education equips students with relevant skills and connects them to productive employment.
It should however be noted that MoSPI revised the PLFS sample design from January 2025, changing aspects of the survey methodology. The detailed 2025 figures should therefore be verified against the earlier reports to ensure that they refer to the same age group, unemployment measure and other relevant parameters.
The distinction between having a job and having a good job is equally important. Employment that offers inadequate earnings, limited security or little scope for career progression may not fulfil the expectations associated with higher education.
For young Indians investing years in education, the real test is whether their qualifications lead to meaningful work and a reasonable return on that investment. Strengthening the link between education, skills and labour-market demandโwhile expanding opportunities for entrepreneurship and productive employmentโwill be essential to meeting the aspirations of an increasingly educated workforce.
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