authors
Mutyala Venkateswara Rao

abstract
India is home to one of the largest populations of educated youth globally, yet it faces a paradoxical crisis of high unemployment among this demographic. Despite significant investments in higher education and an expanding graduate population, the labor market has failed to absorb these individuals adequately. This study investigates the underlying causes and economic consequences of unemployment among educated youth in India. Drawing on data from the Periodic Labour Force Survey (PLFS), Centre for Monitoring Indian Economy (CMIE), and other national sources up to 2021, the research employs a mixed-methods approach combining quantitative analysis with qualitative policy review. The findings reveal a complex web of contributing factors, including skill mismatches, lack of market-aligned education, limited job opportunities in preferred sectors, and gender-based disparities. The consequences are profound: educated unemployment leads to reduced labor productivity, increased fiscal burdens, social unrest, and the erosion of India’s potential demographic dividend. Sectoral absorption is skewed, with the highest educated youth entering sectors with limited employment elasticity. The paper concludes that unless India undertakes systemic reforms—focusing on employability, institutional coordination, and labor market alignment—the economic and social costs of this crisis will continue to escalate. The article is supported by detailed data tables and visualizations.