India’s education system needs an employability makeover

Monalisa Choudhury

(monalisa.ch2016@gmail.com)

The growing unemployment problem in India has created controversy about the effectiveness of its education system. MBA graduates running chai stalls and engineering graduates selling kulcha reveal the non-alignment of our educational system with the job market. To tackle this issue and rebuild trust in the education system, India’s academic institutions must upgrade themselves.

Unemployment is a grave issue

According to the International Labour Organisation’s India Employment Report 2024, 83% of youth are unemployed in India. The report further states that though the proportion of educated youth increased from 18% in 2000 to 35% in 2022, the country witnessed a 65.7% unemployment rate among youth with secondary/higher education in 2022.

A desperate attempt to find a job often leads students to pay for multiple degrees, but in vain. The IT sector, which has been the main driver of employment creation over the past two decades and has boosted the Bangalore and Hyderabad economies, is now experiencing widespread layoffs at major companies like Infosys and Wipro. In addition, growth in manufacturing has been slow compared to expectations. Even the start-up culture, once encouraged by venture capitalists, has become more conservative because of profit-driven hiring practices.

Moreover, educational institutions, especially B-schools, are having questions thrown at them regarding their role in equipping students with the necessary skills for work. On top of that, exorbitant fees charged by certain colleges without job placement guarantees have raised accountability concerns.

How do we ensure accountability in educational institutions?

Educational institutions must be held accountable for the employability of their graduates. This necessitates moving beyond theoretical knowledge to skill-based training and industry-relevant education to adapt to the demands of the digital era. A report by PWC India also claims that 79% of the surveyed Indian work force believes digital skills will be crucial in the next five years.

Curriculum overhaul

Educational institutions should regularly update their curricula in collaboration with industry experts to ensure they are imparting in-demand skills. For example, now that automation has transformed jobs, schools should integrate AI, digital marketing, data analysis and other similar training into their system. An India Skills report claims that the demand for AI experts will exceed 1 million by 2026. Considering the growing demand for AI and data science, the Ministry of Electronics and Information Technology has decided to include AI courses in the school curriculum, starting with the sixth standard.

Performance metrics

Educational institutions should disclose statistics on employment, including starting salaries and placement rates. This information must be subject to auditing so as not to deceive students who may be interested in joining such colleges.

Establishing a capable workforce

for tomorrow

Institutions have to stress soft skills like adaptability, communication, and problem-solving alongside technical skills to prepare students for a changing labour market. Programs like the National Skill Development Corporation aim to provide industry-relevant training by bridging academic learning with employable skills. Career counselling/mentoring programs can also help students pick the career of their choice.

Incentives for outcomes

Reward systems and job guarantees after graduation, which ensure a return on investment for the high fees paid by the student, can help improve employability outcomes. Educational institutions could also focus on attracting a certain number of companies for campus placements based on their fee structures. As such, it would create a situation whereby only those institutions that are best placed to offer the highest quality career prospects would have any justification for charging such high tuition fees.

As an example, business schools may engage an aggressive placement cell to bring top-tier recruiters to campus. This can drive high placement records, in addition to building strong industry connections.

How can EdTech bridge the gap?

EdTech platforms can change the face of the education industry by making it more relevant to market requirements. For instance, EdTech companies can develop market-based programs by working with professionals in various industries. Besides this, they can integrate apprenticeships, internships, and live projects to offer practical knowledge applicable to today’s job market.

EdTech platforms can go even further and provide courses from leading institutions by incorporating project-based assessments. Such practical aspects are crucial, as they may influence the credibility of e-learning.

Need for a collaborative approach

Educational institutions and EdTech platforms have a shared responsibility in transforming India’s educational scenario and resolving the unemployment problem. They can help restore confidence in education by focusing on practical, skill-based education and ensuring accountability, thus creating an employable workforce that can meet the needs of the modern labour market.

Simultaneously, students also have a significant role to play. Instead of relying solely on a college degree or waiting for the government to fix everything, they should take charge of their career by seeking mentorship and exploring alternative paths like entrepreneurship. By working together, individuals, businesses, and the government can address the challenges and create a more robust job market for a brighter future, besides driving economic growth.