Context:

• Despite being one of the largest producers of graduates globally, India faces a persistent challenge of integrating its educated youth into the formal workforce.
• Recent data from Employees’ Provident Fund Organisation (EPFO) and key employment reports underline the urgency of skilling, reskilling, and policy interventions to make India’s workforce future-ready.

Understanding the Formal Employment Landscape:

• EPFO as an employment indicator: A key indicator of formal employment trends in India, EPFO manages retirement savings for over 7 crore workers, making it one of the largest global social security agencies.
• Post-pandemic recovery (March 2025 data): Youth (18–25 years), especially the 18–21 age group, constitute 18%-22% of new subscribers, indicating a steady rise in net new EPFO enrollments and increased formalisation.

Youth Unemployment and Unemployability Crisis:

• Findings from India Employment Report 2024:
  • Published by the International Labour Organization (ILO) and the Institute for Human Development (IHD), the report highlights that youth comprise 83% of India's unemployed population.
  • Unemployment is highest among the educated, particularly those with secondary or higher education.
• Economic Survey 2023–24:
  • Unemployability among the educated is the core issue, as only 50% of graduates are job-ready.
  • There is a high deficit in digital and professional skills, and AI and automation threaten existing jobs, especially in the tech sector.

Skills Deficit in the Digital Age:

• Alarming statistics on digital literacy (India Employment Report 2024):
  • 75% struggle to send an email with attachments.
  • Over 60% cannot perform basic file operations.
  • 90% lack spreadsheet skills (e.g., using formulas).
  • Highlights a severe skills mismatch in a tech-driven job market.
• Future of Jobs Report 2025 (World Economic Forum):
  • By 2030, 170 million new jobs will be created (14% of total employment), and 92 million jobs to be displaced (8%).
  • Net growth will be 78 million jobs (or a 7% increase in total employment).
  • India must act urgently to close the skill gap and avoid losing this opportunity.

Structural and Policy Reforms Needed:

• Educational reforms and industry collaboration:
  • Mandatory industry-academia partnerships for all higher education institutions.
  • Educational institutions must be made accountable for job placements.
  • Establish accreditation linked to placement outcomes.
• Curriculum and pedagogical reforms:
  • Make Idea Labs and Tinker Labs mandatory in schools and colleges.
  • Ensure compulsory training in soft skills, foreign languages, and humanities.
• Global perspective in skilling:
  • Train youth for international labour markets, especially ageing Western nations.
  • Example: India-EU Link4Skills project via the International Institute of Migration and Development.
• Institutional overhaul in education governance:
  • Propose creation of Indian Education Services akin to IAS to attract top talent in education policy and management.
  • Encourage industry professionals to teach in academia, bridging theory-practice gaps.

Way Forward - From Degree to Deployment:

• India's demographic advantage risks becoming a liability unless it is matched by skill-readiness, job-linkages, and futuristic policy-making.
• Coordinated action is needed to strengthen education-employment linkages, expand digital and vocational training, promote cross-border employment readiness, and ensure accountability in both public and private education systems.