economy · 2026-08-27

NITI Aayog: 1 in 12 Grads Get a Matched Job

NITI Aayog: 1 in 12 Grads Get a Matched Job

Photo: Prime Minister's Office / Wikimedia (GODL-India)

NITI Aayog says only 8.25% of India's graduates work in jobs that actually match their degree, and the rest end up wherever the labour market has room, degree or not.

What counts as a job actually matching your degree?

NITI Aayog does not spell out an exact test, but its own examples make the meaning clear: a role that actually uses what the degree taught, not just any job the person could find. Its fix is to redesign generic degrees like B.A. and B.Sc into applied tracks such as B.A. Hospitality or B.Sc. Applied Technology, so the qualification maps directly onto a specific job function.

Why do so few jobs match degrees like B.A. or B.Com?

NITI Aayog calls it a 'fundamental disconnect': curricula stay outdated while employers' needs move on, so degrees do not consistently translate into employability. Over 2 crore of India's 3.4 crore undergraduates are enrolled in B.A., B.Sc. or B.Com, generic courses with weak job linkages, and many pick them mainly because they qualify for government job eligibility rather than for private-sector roles.

What kind of programmes would actually close this gap?

The report pushes Apprenticeship Embedded Degree Programmes and Work-Integrated Degree Programmes, which build workplace exposure into the degree itself, plus applied specialisations like B.Com Analytics. It also wants skill-integration starting as early as Class 6, since 80% of higher-education students cite lack of practical experience and industry exposure as their biggest gap, and 47% of formal workers say the same about job hunting.

Does matching a degree to a job actually pay more?

Skilling on top of a generic degree lifts average starting pay from Rs 22,000 to Rs 29,000 a month, per Boston Consulting Group data cited in the report, both growing at 3.2% a year. Left uncorrected, that Rs 7,000 gap compounds into roughly Rs 9.7 lakh in extra lifetime income over 10 years, a structural return to skilling that most learners never see before choosing a course.

Which degrees have the worst job mismatch?

NITI Aayog names B.A., B.Sc. and B.Com. as the biggest problem degrees, calling their link to real jobs "weak." Together these three courses enrol over 2 crore of India's 3.4 crore undergraduates, with B.A. alone accounting for 1.13 crore students, so the mismatch sits at the very center of India's degree system, not at its margins.

Why do so many students still pick these generic degrees?

Many enrol in B.A., B.Sc. and B.Com. mainly because these degrees make them eligible for government job applications, the report says. That competition is fierce: 1.86 crore applications came in for around 55,000 government posts between November 2024 and July 2025, showing how many graduates are chasing a shrinking pool of jobs their degree alone does not prepare them for.

What would fix the mismatch for these specific degrees?

NITI Aayog wants B.A., B.Sc. and B.Com. redesigned into applied versions like B.A. Hospitality, B.Sc. Applied Technology and B.Com. Analytics, tied more closely to real workplace skills. It also wants more Apprenticeship Embedded Degree Programmes and Work-Integrated Degree Programmes, so students get workplace exposure alongside the degree rather than after graduating unprepared.

Does skilling on top of these degrees actually pay off?

Yes. A generic graduate with no extra skilling starts on average around Rs 22,000 a month, versus Rs 29,000 for one who also skilled up, both growing at 3.2% a year. NITI Aayog says that gap can compound into roughly Rs 9.7 lakh in extra income over 10 years, information it says rarely reaches students before they choose a course.

Does skilling actually pay off, after course costs?

NITI Aayog's own numbers say yes. A graduate with no extra skilling starts around Rs 22,000 a month; one who also does skilling starts at Rs 29,000, a Rs 7,000 gap. With both growing pay at the same 3.2% a year, that gap compounds to roughly Rs 9.7 lakh in extra earnings over 10 years.

Why don't more students act on this before choosing a course?

NITI Aayog's report says this salary gap information almost never reaches students while they are still deciding what to study or whether to add a skilling course. So the choice gets made blind, driven instead by exam scores, family pressure and the status attached to a plain degree versus a vocational one.

Source: businesstoday.in

More stories on FYI