Underemployment in India: A Silent Crisis in the Shadow of Unemployment

 India’s economic narrative often revolves around unemployment—the stark reality of millions unable to find jobs. With a labor force of over 500 million and a youth unemployment rate hovering around 23% (as per recent CMIE data), it’s no surprise that joblessness dominates headlines. But lurking beneath this crisis is another, less discussed issue: underemployment. While unemployment leaves people jobless, underemployment traps skilled workers in roles that underutilize their education, skills, and potential. It’s a systemic failure that raises tough questions about India’s education system, industry demands, and societal priorities.

The Scale of Underemployment

Underemployment is harder to quantify than unemployment, but its impact is no less profound. It manifests in two primary forms: visible underemployment (working fewer hours than desired) and invisible underemployment (working in jobs that don’t match one’s qualifications or skills). In India, the latter is particularly pervasive. According to the International Labour Organization (ILO), over 30% of India’s employed youth are overqualified for their jobs—a figure that reflects the mismatch between education and employment.

Consider the examples: graduates from prestigious institutions like BITS Pilani working as quality assurance (QA) testers, IIT engineers building dashboards in Power BI, or investment bankers churning out PowerPoint presentations. These are not isolated anecdotes but symptoms of a broader trend. A 2023 study by the Azim Premji University found that nearly 40% of engineering graduates in India work in jobs that don’t require their specialized training. Civil engineers pivot to software development, not out of passion but because the job market for their field is saturated or underpaid. This isn’t just a personal tragedy—it’s an economic inefficiency that stifles innovation and growth.

Why Are Graduates Underemployed?

The roots of underemployment lie in a confluence of structural and systemic issues:

1. Misaligned Education System: India’s higher education system, particularly in engineering and technical fields, is often criticized for being outdated and theoretical. Curricula at even top-tier institutes like IITs and NITs emphasize rote learning over practical, industry-relevant skills. For instance, a civil engineering graduate may excel in structural analysis but lack exposure to modern software tools or project management—skills that employers prioritize. Meanwhile, the tech industry, which absorbs over 50% of engineering graduates, demands coding proficiency, often irrelevant to non-computer science disciplines.
2. Skewed Admission Processes: India’s hyper-competitive entrance exams (JEE, NEET, etc.) prioritize rote memorization and rank-based admissions. Students who don’t score high enough for coveted branches like computer science often settle for fields like civil or mechanical engineering, only to find limited opportunities post-graduation. This forces them into unrelated roles, like software development, where they must upskill from scratch.
3. Industry Expectations vs. Reality: Corporate India often prioritizes cost over talent utilization. Roles like QA testing or dashboard creation are low-cost, repetitive tasks that companies assign to highly qualified graduates to cut expenses. Investment bankers spending hours on PowerPoint decks aren’t honing their financial acumen—they’re filling a gap in operational efficiency. This reflects a broader corporate mindset that values immediate output over long-term innovation.
4. Economic Pressures and Job Scarcity: With India’s GDP growth slowing to around 6% in 2024 (per IMF estimates), job creation hasn’t kept pace with the 12 million young people entering the workforce annually. Graduates from elite colleges, facing intense competition, often accept “safe” jobs that don’t match their skills rather than risk unemployment. For instance, software roles, even low-skill ones, offer better pay and stability than core engineering jobs, pushing civil or mechanical engineers to pivot.

The Human and Economic Cost

Underemployment isn’t just a statistic—it’s a personal and societal loss. Graduates who spend four years and lakhs of rupees on a degree only to work in unrelated, low-skill jobs face disillusionment and mental health challenges. A 2022 survey by Deloitte found that 60% of Indian Gen Z workers felt their jobs didn’t align with their career goals, contributing to burnout and disengagement.

Economically, underemployment squanders human capital. When an IIT graduate spends their day building basic dashboards, their potential to innovate or solve complex problems is wasted. This inefficiency hampers India’s ambition to become a $5 trillion economy. Moreover, it perpetuates a cycle where students chase “safe” degrees (like computer science) over passion-driven fields, further skewing the talent pool.

Is the Education System to Blame?

The question of whether college education is being “used” in jobs is central to this crisis. If an IIT graduate’s role could be performed by someone with a short-term coding bootcamp, what was the point of their rigorous education? This disconnect prompts a deeper question: should India’s education system pivot to better match industry expectations?

The answer isn’t straightforward. On one hand, aligning curricula with industry needs—emphasizing skills like coding, data analysis, or project management—could reduce underemployment. Some institutes, like IIITs, have already integrated industry-oriented courses, with partnerships from tech giants like Infosys or TCS. On the other hand, a purely utilitarian approach risks stifling creativity and critical thinking, which elite institutions are meant to foster. A civil engineer shouldn’t have to become a software developer, but the system must ensure their skills are valued in their own field.

Reforming the curriculum is only half the battle. Entrance exams need an overhaul to prioritize aptitude over rote learning. Industry must also step up, creating roles that leverage specialized skills rather than funneling graduates into generic tech jobs. Government policies, like incentives for core engineering sectors (e.g., infrastructure or manufacturing), could balance job distribution across fields.

A Broken System, But Not Hopeless

India’s underemployment crisis is a symptom of a misaligned ecosystem—education, industry, and policy working at cross-purposes. It’s tempting to call the system “fucked,” as frustration mounts among graduates who feel cheated by their degrees. But the issue, while systemic, isn’t intractable.

Solutions lie in multi-pronged reforms:

• Education: Update curricula to blend theoretical rigor with practical skills. Introduce flexible tracks allowing students to explore interdisciplinary fields.
• Industry: Encourage companies to create roles that utilize specialized skills, supported by tax incentives or public-private partnerships.
• Policy: Invest in sectors like infrastructure, renewable energy, and manufacturing to absorb core engineering talent.
• Career Guidance: Provide better counseling to align students’ interests with market realities, reducing the pressure to chase “safe” degrees.

Underemployment may not grab headlines like unemployment, but its toll on India’s youth and economy is undeniable. It’s time to stop treating graduates as cogs in a machine and start valuing their potential. Only then can India turn its demographic dividend into a true asset, rather than a source of frustration.

Survivor Bias in India: Why Celebrating Winners Alone Can Mislead You

 In India, success stories are everywhere — from rags-to-riches entrepreneurs like Dhirubhai Ambani and Ritesh Agarwal, to IIT toppers who crack UPSC and land top government jobs, to cricketers like Virat Kohli making the nation proud. We love these stories because they inspire us, fuel ambition, and show us what’s possible.

But here’s the catch — when we only focus on winners and success stories, we fall prey to a cognitive trap called survivor bias. This bias can distort how we view success, effort, and the risks involved. Let’s unpack what survivor bias means and why, in the Indian context, being aware of it is crucial.

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What Is Survivor Bias?

Survivor bias happens when we look only at the “survivors” — those who succeeded — and ignore those who tried the same path but didn’t make it. The failures, struggles, and silent exits remain invisible. This skews our understanding because the visible winners are only a small, unrepresentative sample of everyone who started.

For example:

• We read about Indian startup founders who became billionaires, but thousands of startups never take off or shut down.

• We celebrate the IIT graduate who built a successful tech company, but don’t often hear about those IIT grads struggling to find jobs.

• We admire a cricketer who played for India, but overlook the countless talented players who never got a chance.

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Why Is This a Problem?

1. False Perception of Success Probability

If you only see winners, you might overestimate how likely success is, leading to unrealistic expectations. For instance, many young Indians aspire to start their own business inspired by Flipkart’s success, without realizing that about 90% of startups fail.

2. Ignoring the Role of Luck and Timing

Success isn’t just hard work or talent; often, luck and timing play huge roles. Survivor bias hides this, making success look purely due to skill or effort.

3. Underestimating Risks and Challenges

By focusing on success stories, people might underestimate the risks or challenges. This can lead to poor decisions — like dropping out of college thinking it’s a shortcut, inspired by a handful of famous dropout billionaires.

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Is Highlighting Winners Bad?

Absolutely not! Celebrating achievers motivates society, spreads hope, and shows what’s possible. India thrives on its success stories to inspire millions.

The key is balance: Along with winners, we must recognize the silent majority who struggled or failed. This balanced view helps us understand the true path to success — which often involves failures, retries, and learning.

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How Can We Avoid Survivor Bias?

1. Listen to Failure Stories

Entrepreneurs should share their failures, not just wins. Educational institutions can highlight students’ struggles, not just toppers.

2. Be Realistic About Success Rates

Understand that for every successful startup or athlete, many tried and failed. Don’t underestimate the odds.

3. Acknowledge Luck and External Factors

Recognize that timing, connections, and external circumstances matter too.

4. Learn from the Whole Spectrum

Study success and failure cases to get a realistic roadmap.

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Examples from India

• Startup Scene: While Ola and Paytm are celebrated, thousands of startups quietly shut down each year. Recognizing this prepares aspiring founders better.

• Competitive Exams: UPSC toppers are applauded, but most aspirants clear preliminary exams only after multiple attempts or never at all. Coaching institutes could emphasize this reality more.

• Sports: Cricket legends shine on TV, but countless players play at club and district level without ever getting a big break.

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Conclusion

Survivor bias is a natural cognitive shortcut but being aware of it is vital — especially in a country like India where success stories inspire millions. Celebrate winners, yes, but also recognize the invisible struggles and failures that paint the full picture.

This balanced perspective empowers smarter decisions, more realistic expectations, and a healthier appreciation of what success really entails.

No Second Chances: The Silent Brutality of Dreaming in a Developing Country

 In a developing country, you don’t chase dreams—you gamble with your life.

You’re told from childhood to dream big. Become an IAS officer. Crack IIT. Be a doctor. Change the nation. But what no one tells you is this: you only get one real shot. Miss it, and the world moves on without you. The scaffolding beneath your dreams—money, time, mental health, support—is so fragile, it barely holds through a single attempt.

There’s no cushion here. No "gap year" safety. No second-chance scholarships. No mental health leave. If you fail, you're not just a student who didn't make it—you're a liability. A burden on your family. A cautionary tale whispered in relatives’ homes. A cracked hope your younger siblings learn to avoid.

In developed countries, people change careers at 35 and still find jobs. They fail at startups, write about it, and get investor funding again. They go to therapy, take antidepressants, take a break. Here, you can't afford a break—you barely afford the exam form. You’re told to “keep going” even when your insides are bleeding. You scroll past success stories on LinkedIn while your parents avoid your eyes at dinner.

You can work for five years on one dream. Wake up at 5am, study ten hours a day, cut off friends, relationships, joy. And yet, one bad paper, one missed cut-off, and it’s all gone. No do-over. No extra attempt. Just an invisible stamp on your forehead that says “failure.”

People say “hard work always pays off.” It doesn’t. Not here. Sometimes, the lucky win. Sometimes, the connected. Sometimes, just the well-fed. In the silence of your room, surrounded by notes and self-help quotes, you begin to understand: this country doesn’t reward effort—it rewards outcome.

And the worst part? You can’t even grieve properly. Because somewhere, someone your age is posting their rank. Someone is moving to Delhi for a coaching class you can’t afford. Someone is making your exact dream look easy. And the shame burns deeper than the failure itself.

In a developing country, dreaming is an act of rebellion. But failing is a death sentence. Not literal—just slow, suffocating, and rarely spoken of. No one will tell you this when you start. But if you're reading this after falling, you already know.

Why developed countries often offer more second chances:

1. Safety nets:
   Developed nations tend to have better unemployment benefits, public healthcare, student loan systems, and legal protections. So failing at something—losing a job, dropping out, going bankrupt—is less likely to destroy your entire future.

2. More flexible education and job markets:
   You can go back to school at 35. You can switch careers after failing at one. You can start a business, fail, and still get hired somewhere. These systems expect reinvention.

3. Less stigma:
   Culturally, failure is more normalized—especially in the U.S. or parts of Europe—where entrepreneurship, career pivots, or academic retries are part of the process.

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🧱 Why second chances are harder in developing countries:

1. Limited opportunities:
   In places like India, the pyramid is steep. One shot at UPSC or IIT or MBBS feels like the only shot. Failing once can often mean falling behind for years.

2. Fewer resources:
   There's often little state support if you fail. No backup loans, mental health support, or accessible re-skilling programs. Family pressure and financial burdens weigh heavier.

3. Societal pressure:
   Failing carries heavier stigma in many developing societies, where status and "settling down early" are cultural expectations.

📚 A Global Pressure Cooker: Comparing College Entrance Exam Toughness in India, China, and Beyond

 

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📚 A Global Pressure Cooker: Comparing College Entrance Exam Toughness in India, China, and Beyond

When it comes to college entrance exams, a few countries stand out as pressure-cookers of academic competition. In India, China, South Korea, Japan, Iran, and parts of Europe, students prepare for years for a single test that could define their futures. In contrast, the United States offers a more holistic (and often criticized) approach. But how do these systems actually compare?

Let’s break it down country by country.

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🇮🇳 India: The Gauntlet of Competitive Exams

🎯 Exams:

• JEE Advanced for IITs (Engineering)
• NEET for Medical colleges
• CUET for Central Universities

📊 Acceptance Rates:

• JEE Advanced: ~2% of applicants qualify. For top IITs, a rank in the top 1,000 (out of ~180,000 who qualify) is needed.
• NEET: 2.1 million+ appear, but only ~7% get into government medical colleges.

🏋️ Coaching Culture:

• A billion-dollar industry. Kota, Rajasthan is a “coaching city” with lakhs of students. Coaching starts as early as Class 8 or 9.
• Some students spend 14–16 hours a day studying.

😓 Pressure:

• Sky-high. Parental expectations, social comparisons, and fear of failure often cause anxiety and depression. Unfortunately, student suicides in coaching hubs are not uncommon.

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🇨🇳 China: The Gaokao — Life’s Final Boss

🎯 Exam:

• Gaokao (National College Entrance Exam)

📊 Acceptance Rates:

• Top universities like Tsinghua or Peking University admit <0.1% of Gaokao takers (~10 million sit the exam annually).
• Students often need to score in the top 0.01% for elite programs.

🏋️ Coaching Culture:

• “Gaokao factories” exist. Some high schools resemble boot camps. Morning study starts at 5 a.m., with school ending as late as 11 p.m.

😓 Pressure:

• Incredibly intense. Gaokao is called a “once-in-a-lifetime” test. It is often the sole criterion for university admission.

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🇰🇷 South Korea: The Suneung Survival Game

🎯 Exam:

• Suneung (CSAT) — College Scholastic Ability Test

📊 Acceptance Rates:

• Seoul National University: Admits less than 0.5% of test-takers.
• Students aim for the “SKY” universities (Seoul National, Korea, Yonsei), which are highly selective.

🏋️ Coaching Culture:

• Hagwons (private cram schools) are everywhere. Students often attend until midnight.
• The government has attempted to limit evening study hours to combat burnout.

😓 Pressure:

• National stress levels spike during Suneung day. Flights are grounded during listening tests to avoid noise. Students rehearse for years.

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🇯🇵 Japan: Exam Hell with a Gap Year Culture

🎯 Exam:

• National Center Test (now called the Common Test) + University-specific entrance exams

📊 Acceptance Rates:

• University of Tokyo: Acceptance rate ~1.8%
• Many students take a gap year (“ronin”) to reattempt exams after failing.

🏋️ Coaching Culture:

• Juku (cram schools) are common. Many students also enroll in prep schools during gap years.

😓 Pressure:

• Social stigma of being a “ronin” is real, but the pressure is slightly less intense than Korea or China due to multiple entry points.

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🇮🇷 Iran: The Konkur — One Exam to Rule Them All

🎯 Exam:

• Konkur (National University Entrance Exam)

📊 Acceptance Rates:

• Less than 1% get into top programs like medicine at the University of Tehran.

🏋️ Coaching Culture:

• Coaching is widespread and often expensive. Students study rigorously for years, especially for medical and engineering tracks.

😓 Pressure:

• The entire university system is dependent on one test. High stress, especially in a society with limited job opportunities for graduates.

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🇺🇸 USA: The Holistic and Chaotic Alternative

🎯 Exams:

• SAT / ACT, plus GPA, extracurriculars, essays, recommendations

📊 Acceptance Rates:

• Harvard: ~3%
• MIT: ~4%
• However, less than 1% of U.S. students apply to Ivy League-level schools.

🏋️ Coaching Culture:

• Growing test-prep market, but nothing close to India/China.
• Wealth plays a role: private counseling, legacy admissions, and “donations” tilt the odds.

😓 Pressure:

• High for top schools, but not tied to a single national exam. Students have more pathways: community college, transfer routes, etc.

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🇪🇺 Europe: More Balanced, But Varies By Country

🎯 Exams:

• Depends on the country. Some use Baccalaureate-style exams (France), others use GPA + entrance test hybrids (Germany, Italy).

📊 Acceptance Rates:

• Generally higher. Public universities are accessible if you clear national or regional thresholds.
• For example, Germany’s Numerus Clausus system limits spots in medicine and psychology, but other disciplines are open.

🏋️ Coaching Culture:

• Minimal compared to Asia. Emphasis is on school performance, not separate coaching centers.

😓 Pressure:

• Moderate. Less extreme societal pressure due to affordable education, free or low-cost universities, and strong vocational pathways.

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🧠 Conclusion: Who Has It the Toughest?

In terms of pure exam difficulty and pressure, here’s an informal global toughness ranking:

1. China (Gaokao — mass scale, single shot, insane cutoffs)
2. India (IIT-JEE/NEET — huge competition, expensive coaching culture)
3. South Korea (Suneung — national obsession, sky-high stakes)
4. Iran (Konkur — one chance, brutal cutoffs)
5. Japan (Gap year culture softens blow, but still intense)
6. USA (Low pressure unless aiming for top Ivies)
7. Europe (Generally more balanced and humane)

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🕯 Final Thoughts:

In countries like India, China, and South Korea, college entrance exams are more than tests — they are national obsessions, economic lifelines, and psychological crucibles. While some systems offer flexibility, others leave little room for error. Reform is slow, but needed. After all, no single exam should define a teenager’s future.