The Invisible War: Inside the Battle Against Stubborn Unemployment

India faces educated unemployment as degrees lack job-ready skills. With 20% youth jobless, MSMEs expanding to rural areas could balance opportunities and reduce urban migration.

New Delhi: India is currently the fastest-growing major economy in the world, which effectively puts it at #1 in growth rate among the largest countries. Despite this, there is a huge gap in degrees vs employability, which is an ironic challenge in the Indian labour market. ‘EDUCATED UNEMPLOYMENT,’ the vast number of people with formal degrees struggle to find jobs or suitable jobs, reports Dynamite News correspondent.

In India, unemployment is a complex issue- a student studied hard for years to get their dream shiny degree, but the job reality is different; they step into the job market the required skills are not what the student learned in the degree. Therefore, it means students are educated but not “job ready.”

The root cause of the stubborn unemployment is the difference between theoretical knowledge and practical knowledge; it is where there is a mismatch between skills and jobs; Education institutes are failing to equip students with industry-relevant skills. Population growth vs. job creation: India’s population adds over twelve million people to its workforce annually, but job creation has not kept pace.

The youth unemployment rate is alarmingly high, exceeding 20% in urban areas. It means a high rate of economic dependency and social unrest. The technical graduates and engineers are underemployed or jobless. In the rural area, the lack of job opportunities leads to large-scale migration to cities, therefore increasing competition in urban areas.

The micro, small, and medium enterprises (MSMEs) are called the backbone of the Indian economy. and the largest employment provider after agriculture. However, they are lacking in providing jobs to their potential, so the shift of MSMES in tier 3 cities or even deeper in rural areas leads to less immigration to metro cities, and there will be a lack of competition, and the talent of rural areas will also be explored.

The stubborn unemployment challenge is not just about finding jobs; it is about finding the right jobs in the right places. where bright young minds with degrees struggle to find jobs that truly fit. It is a puzzle, and while fixing education and skilling is a huge part of it, there is another exciting piece that holds immense potential: shifting our amazing small and medium businesses (MSMEs) to India's bustling Tier 3 cities and even deeper into rural areas.