Context:

A new report from Mercer Mettl, titled India’s Graduate Skill Index 2025, has raised concerns over the declining employability of Indian graduates.

Key Findings of the Report:

1. The Decline in Graduate Employability

The most striking revelation of the Graduate Skill Index 2025 is the 2% drop in graduate employability, a concerning trend amid the fast-growing demand for skilled professionals in India.

India's graduate employability has fallen from 44.3% in 2023 to 42.6% in 2024. This decline is largely due to a widening gap in non-technical skills, despite a slight improvement in technical proficiency.

The report attributes this drop to several factors, with the lack of proficiency in soft skills—such as communication, creativity, and leadership—being the most significant contributor.

2. Delhi Leads in Employability

Among all states and Union Territories, Delhi has emerged as the most employable region, boasting an employability score of 53.4%.

Delhi is closely followed by Himachal Pradesh and Punjab, both registering an employability rate of 51.1%.

3. Technical vs. Non-Technical Skills

While technical roles saw a slight improvement in employability, non-technical roles witnessed a sharp decline.

• Technical Roles: Employability in technical positions increased slightly from 41.3% in 2023 to 42% in 2024.
• AI and Machine Learning jobs showed the highest employability at 46.1%.
• Data Scientist and Back-End Developer roles recorded much lower employability rates, hovering around 39.8%.
• Non-Technical Roles: The most significant decline occurred in non-technical job roles, where employability fell from 48.3% in 2023 to 43.5% in 2024.
• HR Associates and Digital Marketers were the worst-hit, with employability rates at 39.9% and 41%, respectively.

4. Challenges with Soft Skills

The study underscores the growing importance of soft skills such as communication, critical thinking, leadership, and creativity, particularly as automation and AI increasingly reshape the job market.

• Competence in Key Soft Skills:
• Communication: 55.1% of graduates are considered proficient.
• Critical Thinking: 54.6% scored well in this area.
• Leadership: 54.2% demonstrated capability.
• Creativity: Only 44.3% of graduates were deemed employable, highlighting a significant gap.

As automation eliminates routine tasks, human ingenuity and decision-making will become increasingly valuable. Graduates with strong soft skills are expected to thrive in leadership roles and dynamic careers that require adaptability and innovation.

Way forward:

The Mercer Mettl report presents a sobering analysis of India’s graduate employability. While there is promise in technical fields like AI and Machine Learning, the overall figures indicate substantial challenges in both technical and non-technical skills.

To bridge the employability gap, the report recommends:

1.   Investing in Non-Technical Skill Development – Colleges and universities should prioritize soft skills such as communication, leadership, and creativity, alongside technical training.

2.   Enhanced Industry-Academic Collaboration – Stronger collaboration between educational institutions and industry players will help align curricula with real-world job demands.

3.   Focus on Tier 2 and Tier 3 Talent – Expanding training programs and corporate recruitment in Tier 2 and Tier 3 colleges will help unlock untapped potential.

4.   Promotion of Continuous Learning – With rapid technological advancements, graduates must adopt a lifelong learning mindset to stay relevant in evolving job markets.