Only 42.6 per cent of youth are employable
A new report by Mercer-Mettl, India’s Graduate Skill Index 2025, reveals that only 42.6 per cent of Indian graduates are employable, meaning 57.4 per cent are unable to find work. This figure is for 2024. The situation has worsened in a year, as 44.3 per cent of graduates were considered employable in 2023. However, it is satisfying that the gender gap in this matter (men 43.4 per cent and women 41.7 per cent) is not significant. The report found that the biggest challenge facing young people is the growing gap between the needs of employers and the skills possessed by graduates.
Growing demand for AI, data science and soft skills
There is a high demand for AI and data science in the job market. This is followed by non-technical skills, or soft skills, where key competencies such as communication (55.1 per cent), critical thinking (54.6 per cent), and leadership (54.2 per cent) are now essential for workplace success. The demand for creativity is not high. The employability score in this area is only 44.3 per cent. Creative talents are facing more difficulty in finding jobs.
Tier-1 colleges are ahead, but…
The report stated that graduates from first-class colleges have the highest employment prospects at 48.4 per cent. This is followed by Tier-2 (46.1 per cent) institutions in second place and Tier-3 (43.4 per cent) institutions in third place.
Delhi-Himachal-Punjab ahead
Among the states, Delhi (53.4 per cent), Himachal Pradesh (51.1 per cent), and Punjab (51.1 per cent) produce the most employable graduates. Uttar Pradesh, West Bengal, Assam, and Telangana are also in the top 10.
AI and data science jobs increased
The report stated that 46 per cent of Indian graduates are now employable in AI and ML roles, which is better than in 2023. The demand for AI, data analytics, and digital skills is increasing. Gender equality has been observed in these roles.
Musk’s Tesla starts hiring in India
Meanwhile, Tesla Inc., owned by prominent American industrialist Elon Musk, has advertised for jobs in India. Musk met with Prime Minister Narendra Modi during his visit to the US. Since then, speculation has been rife about Tesla cars entering the Indian market. Tesla’s advertisement has fuelled these speculations. According to the advertisement, Tesla is looking for candidates for 13 positions. At least five of these positions, including service technicians and advisors, are required in Mumbai and Delhi. Tesla and the Indian government have been in talks for several years, but the carmaker has kept its distance from the South Asian country due to concerns over high import duties. India has now reduced the basic customs duty on high-end cars priced above $40,000 from 110 per cent to 70 per cent.