India's Engineering Employability Crisis: Only 10% of Graduates Likely to Secure Jobs

National Engineering Day: India's Employability in Crisis, Only 10% of India's 1.5 Million Engineering Graduates Set to Secure Jobs This Year

TeamLease Advocates for Strengthening Employability Among India's Engineering Graduates Engineering has long been a cornerstone of India's development, emerging as one of the most preferred career choices, shaping the nation's innovation, infrastructure, and progress. As we celebrate National Engineering Day, honoring the critical contributions of engineers in driving the country's growth, India proudly stands as a leader in producing engineering talent, with nearly 1.5 engineers graduating annually. However, despite this impressive output, the employability of our engineering graduates remains a significant challenge. Central to the theme of 'Creating Solutions for a Sustainable World,' the growing skills gap among engineering graduates emphasizes the need for a more comprehensive approach to workforce readiness. TeamLease Degree Apprenticeship has been at the forefront of addressing this issue by integrating practical, hands-on training with academic knowledge to better align engineering talent with industry demands. As we work toward a sustainable future, addressing the employability challenges faced by young engineers is crucial. Recent statistics indicate that employability among engineering graduates stands over 60%, with only 45% meeting industry standards. Furthermore, a mere 10% of the 1.5 million engineers expected to graduate this fiscal year are anticipated to secure employment. These statistics highlight a significant disparity in the preparedness of engineering graduates to fulfill industry demands. The diminishing rate of placements can be attributed to the evolving job landscape propelled by rapid technological advancements, emphasising the pressing need for a stronger focus on enhancing employability through skill development. Furthermore, NASSCOM has projected that India's technology sector will require over 1 million engineers with advanced skills in Artificial Intelligence and other cutting-edge technologies within the next 2-3 years. Additionally, the demand-supply gap for digital talent is poised to widen from the current 25% to almost 30% by 2028. The escalating demand, fueled by the rise of AI, Electric Vehicles (EVs), semiconductors, and the growing electronics industry, underscores a critical challenge regarding the employability of engineering graduates. As industries increasingly seek expertise in domains such as cybersecurity, IT, robotics, and data science, it is evident that conventional academic education alone is inadequate. To address this skills gap, essential measures involve the amalgamation of technical education with hands-on vocational training. The National Education Policy (NEP) recognizes this necessity and advocates for experiential learning models and apprenticeships that blend theoretical knowledge with real-world application. Sharing insights on building skills and the critical need to enhance the employability of engineering youth, A.R. Ramesh, CEO of TeamLease Degree Apprenticeship, emphasized the widening gap between academic excellence and industry needs, particularly in emerging fields like semiconductors, AI, and automation. To bridge this widening gap, apprenticeships and internships have emerged as indispensable pathways, effectively integrating academic learning with practical experience. Innovative solutions like the Managed Training Services (MTS) program offer an efficient alternative to conventional induction programs, significantly enhancing job readiness through intensive, industry-focused training. By equipping engineers with technical expertise and critical 21st-century skills, our MTS programs facilitate their seamless assimilation into the workforce". He further shared his insights that "There is the necessity for stronger academia-industry collaborations and continually aligning curricula with global market demands to enhance the employability and industry-readiness of engineering graduates." Adding on, Dhriti Prasanna Mahanta, Vice President and Chief Business Officer at TeamLease Degree Apprenticeship said "The need to enhance employability of today's youth is more pressing than ever, given the significant surge in demand for skilled engineers, especially in the electronics and electrical engineering industries. The future of our industries hinges on a workforce that is not only academically prepared but also equipped with the practical, on-the-job skills that employers value. Apprenticeships bridge this gap by offering structured, hands-on training alongside formal education, ensuring that young professionals are work-ready from day one. With real-world experience and mentorship, apprentices can develop the critical skills required to meet the growing demands of the industry, a win-win for both professionals and companies. By directing attention towards apprenticeships, the immediate demand for engineers can be met while laying the groundwork for sustained sectoral growth and innovation. The strategic investment in enhancing the employability of youth is deemed paramount for establishing a sustainable talent pipeline for the future. About TeamLease Degree Apprenticeship: TeamLease Degree Apprenticeship is India's largest Degree Apprenticeship service provider offered through a partnership with 22 universities pan-India, including TeamLease Skills University (TLSU) and an empanelled third-party Aggregator under the guidelines laid down by the Ministry of Education & Ministry of Skill Development and Entrepreneurship. The company acts as a key facilitator between industry, academia, youth, government & industry bodies for the penetration of and improving the effectiveness of work-based learning programs, including apprenticeships, across India. The company has hired about 1 million apprentices with more than 1000 employers in the past 10 years. About 98% of these apprentices have transitioned into formal employment, and almost 40% have been employed in the same organization. Through its Degree Apprenticeship Program, TeamLease focuses on enhancing the employability quotient of the youth of our country and bridging the skill deficit.

Only 10% of India's 1.5 Million Engineering Graduates Set to Secure Jobs This Year: Report

The need to enhance employability of today's youth is more pressing than ever, given the significant surge in demand for skilled engineers, says Dhriti Prasanna Mahanta, vice president and chief business officer at TeamLease Degree Apprenticeship. Employability among engineering graduates stands at over 60 per cent, with only 45 per cent meeting industry standards. Furthermore, a mere 10 per cent of the 1.5 million engineers expected to graduate this fiscal year are anticipated to secure employment, according to a TeamLease report. The major reason, it said, is the skills gap among engineering graduates. "Engineering has long been a cornerstone of India's development, emerging as one of the most preferred career choices, shaping the nation's innovation, infrastructure, and progress. As we celebrate National Engineering Day, honoring the critical contributions of engineers in driving the country's growth, India proudly stands as a leader in producing engineering talent, with nearly 1.5 engineers graduating annually. However, despite this impressive output, the employability of our engineering graduates remains a significant challenge," said the report by TeamLease Degree Apprenticeship. It said the growing skills gap among engineering graduates emphasises the need for a more comprehensive approach to workforce readiness. Integrating practical, hands-on training with academic knowledge will better align engineering talent with industry demands. "Recent statistics indicate that employability among engineering graduates stands over 60%, with only 45% meeting industry standards. Furthermore, a mere 10% of the 1.5 million engineers expected to graduate this fiscal year are anticipated to secure employment. These statistics highlight a significant disparity in the preparedness of engineering graduates to fulfill industry demands. The diminishing rate of placements can be attributed to the evolving job landscape propelled by rapid technological advancements, emphasising the pressing need for a stronger focus on enhancing employability through skill development," TeamLease Degree Apprenticeship said. Furthermore, NASSCOM has projected that India's technology sector will require over one million engineers with advanced skills in artificial intelligence and other cutting-edge technologies within the next 2-3 years. Additionally, the demand-supply gap for digital talent is poised to widen from the current 25 per cent to almost 30 per cent by 2028. The escalating demand, fueled by the rise of AI, electric vehicles (EVs), semiconductors, and the growing electronics industry, underscores a critical challenge regarding the employability of engineering graduates. As industries increasingly seek expertise in domains such as cybersecurity, IT, robotics, and data science, it is evident that conventional academic education alone is inadequate. To address this skills gap, essential measures involve the amalgamation of technical education with hands-on vocational training. The National Education Policy (NEP) recognizes this necessity and advocates for experiential learning models and apprenticeships that blend theoretical knowledge with real-world application. A R Ramesh, CEO of TeamLease Degree Apprenticeship, highlighted the widening gap between academic excellence and industry needs, particularly in emerging fields like semiconductors, AI, and automation. "To bridge this widening gap, apprenticeships and internships have emerged as indispensable pathways, effectively integrating academic learning with practical experience." "There is the necessity for stronger academia-industry collaborations and continually aligning curricula with global market demands to enhance the employability and industry-readiness of engineering graduates," he added. Dhriti Prasanna Mahanta, vice president and chief business officer at TeamLease Degree Apprenticeship, said, "The need to enhance employability of today's youth is more pressing than ever, given the significant surge in demand for skilled engineers, especially in the electronics and electrical engineering industries. The future of our industries hinges on a workforce that is not only academically prepared but also equipped with the practical, on-the-job skills that employers value. Apprenticeships bridge this gap by offering structured, hands-on training alongside formal education, ensuring that young professionals are work-ready from day one."