Context: According to the Periodic Labour Force Survey, the unemployment rate among graduates is higher than in many other developing countries due to higher education out of touch with the skill requirements in the job market.
Unemployment rate in India:
According to PLFS:
- It has reduced to 3.2% in 2022-23, from 6.1% in 2017-18.
- Graduate degree unemployment rates has reduced to 13% in 2022-23 from 17% in 2017-18.
- Unemployment rate for young workers aged 18 to 29 with graduate degrees, has reduced to 27% in 2022-23 from 36% in 2017-18.
- The share of graduates in the labour force has risen to around 15% by 2022-23 from 5% in 1993-94.
Reason for mismatch between higher education and skill requirements in the job market:
- Slow curriculum updates: Higher education institutions (HEIs) often have slow processes for updating curricula. This results in a lag between the emergence of new skills in the job market and their incorporation into academic programs.
- Governance issues: As HEIs are affiliated with UGC or AICTE etc. they face challenges of over-centralisation, lack of autonomy and transparency.
- Limited industry collaboration: Some higher education institutions may lack effective collaboration with industries. This can lead to a disconnect between academic content and the practical skills required in the workplace.
- The degree-oriented education system: Focus on rote memorization and exams, which may not foster critical thinking, creativity, and skills.
- Faculty skill gap: Faculty members may themselves lack up-to-date knowledge and skills relevant to rapidly changing industries, result in the transmission of outdated information and a lack of emphasis on cutting-edge technologies and practices.
- Inadequate focus on research and innovation: Due to scarcity of funds, ill-equipped labs and weak linkage of Research, higher education and Industry. India’s research and development (R&D) expenditure as a proportion of GDP is only 0.7% and in Korea is 4%.
Government Initiative to address mismatch between higher education and skill requirements in the job market:
- Scheme for Promotion of Academic and Research Collaboration (SPARC), 2018: For improving the research ecosystem of India’s Higher Educational Institutions.
- Education Quality Upgradation and Inclusion Program (EQUIP) : To enhance access, inclusion, quality, excellence, and employability.
- Technical Education Quality Improvement Programme of Government of India (TEQIP): To upscale and support ongoing efforts in improving the quality of technical education.
- Institute of Eminence (IoE): To empower Higher Educational Institutions and to help them become world-class teaching and research institutions.
- National Education Alliance for Technology (NEAT): To provide technology solutions using Artificial Intelligence for customized learning or e-content in niche areas having highly employable skills.
Measures to address mismatch between higher education and skill requirements in the job market:
- Establish mechanisms to ensure that university curricula are regularly updated to reflect industry trends and emerging technologies.
- Establish advisory boards with industry representation, promote joint research projects, and encourage industry professionals to participate in curriculum development to strengthen industry-academia linkage.
- Incorporate modern technologies and tools into teaching methods to enhances the learning experience and also ensures that students are familiar with the technologies used in their future workplaces.
- Establish channels for continuous feedback from employers about the performance of graduates in the workplace. Use this feedback to make necessary adjustments to educational programs.
- Emphasize the development of soft skills, including communication, teamwork, problem-solving, and critical thinking, to enhance graduates' overall employability.