Engineering in Crisis: TeamLease report reveals only 10% of 1.5 million graduates will land jobs this year

TeamLease report reveals only 10% of 1.5 million graduates will land jobs this year (Image: Canva)

Engineering has been a fundamental pillar of India’s development, consistently ranking as one of the most sought-after career paths. It has played a crucial role in driving the nation’s innovation, building infrastructure, and advancing technology. With around 1.5 million engineers graduating annually, India produces a vast talent pool, according to the TeamLease Degree Apprenticeship report. However, despite these high numbers, the employability of these graduates is in crisis. Only 10 percent of engineering graduates are expected to secure jobs this year, underscoring a widening gap between academic education and industry-required practical skills.

The core issue lies in the rapid pace of technological advancement and the evolving needs of the job market. Many engineering graduates are not equipped with the specialized skills needed in emerging sectors like Artificial Intelligence (AI), Electric Vehicles (EVs), and semiconductors. According to the TeamLease report, while over 60 percent of engineering graduates are technically employable, only 45 percent meet the specific standards set by employers.

This gap is expected to widen as industries continue to prioritize advanced skills in areas such as IT, cybersecurity, and robotics. NASSCOM estimates that India’s tech sector will require over 1 million engineers with specialized expertise in AI and other cutting-edge technologies in the next few years. If the skills gap persists, the demand-supply gap for qualified engineers could increase to nearly 30 percent by 2028.

To tackle this crisis, India must adopt an experiential learning model that integrates hands-on training with traditional education. The National Education Policy (NEP) recognizes this need, promoting apprenticeship programs and practical learning experiences to better align education with industry requirements. By embracing this approach, India can better prepare its engineering graduates for the demands of the modern job market.

A.R. Ramesh, CEO of TeamLease Degree Apprenticeship, highlights the growing mismatch between academic achievements and industry requirements, especially in 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," Ramesh said. He stressed the need for stronger academia-industry collaborations and continuous curriculum updates to enhance the employability and readiness of engineering graduates.

“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," Dhriti Prasanna Mahanta, Vice President and Chief Business Officer at TeamLease Degree Apprenticeship said. "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," she added.

Engineering remains a vital force in India’s progress, but the growing employability crisis among graduates underscores the urgent need for reform. Bridging the gap between academic training and industry needs through skill-based education and hands-on experience is essential to secure a brighter future for India's engineering talent.