A recent Bloomberg News analysis of India's Periodic Labour Force Survey (PLFS) unit-level data for 2025 paints a concerning picture for the nation's educated youth. Despite an expanding higher education sector, a college degree is far from a guarantee of secure, formal employment.
The findings indicate that out of every 100 young Indian graduates aged 15-29, only 26 manage to secure regular salaried positions. The situation is even more dire concerning job quality: a mere four of these 100 graduates enjoy the full spectrum of formal employment benefits, including a written contract, paid leave, and social security coverage.
The Broader Employment Landscape for Graduates
The analysis offers a comprehensive look at the employment status of young graduates. Out of every 100, 50 are employed, while 15 are actively unemployed and seeking work. A significant 35 graduates are not part of the labour force at all.
Among those who are employed, salaried workers constitute the largest group at 26%. However, other forms of employment are prevalent and often less secure:
- Unpaid Family Helpers: 11 graduates
- Self-Employed: 10 graduates
- Casual Workers/Employers in Household Enterprises: 3 graduates
This distribution underscores that while opportunities exist, a substantial portion lies outside the formal sector, lacking the stability and protections associated with quality jobs.
Quality of Salaried Employment Remains a Challenge
Even for the 26% who secure salaried roles, the report highlights a critical deficiency in job quality. The fact that only four out of 100 graduates receive comprehensive benefits—such as employment contracts, paid leave, and social security—reveals a widespread prevalence of informal employment even among educated individuals. Many salaried workers lack one or more of these fundamental protections, indicating a gap between holding a 'salaried' position and enjoying truly formal employment.
Women Disproportionately Affected by Non-Participation
A notable finding concerns the 35 graduates not within the labour force. Of these, 20 are engaged in domestic duties, and strikingly, all of them are women. Another 14 are pursuing higher education, and one is involved in vocational training or other activities. This data points to the persistent challenge of female labour force participation in India, where domestic responsibilities continue to keep many educated women from entering paid employment.
The Call for Quality Employment
India has significantly expanded access to higher education over the past decade, producing millions of graduates annually. However, the Bloomberg News analysis suggests that the availability of secure, formal jobs has not kept pace with this growing pool of educated workers. Policymakers face a dual challenge: not just creating more jobs, but also significantly improving the quality of existing and new employment opportunities.
Ensuring that higher education translates into meaningful economic opportunities for young graduates will necessitate expanding formal employment that includes social security, written contracts, and paid leave. This remains a central goal for leveraging India's demographic dividend effectively.