8.7 crore Indian youth stuck between education and work: NITI Aayog

Around 8.7 crore Indian youth are classified as NEET (Not in Education, Employment or Training), a recent NITI Aayog report has revealed.

The report, titled ‘Reimagining Skilling for Viksit Bharat @ 2047’, draws on data from the 78th round of the National Sample Survey and states that nearly 11 per cent of Indians aged 15-29 fall into the NEET category.

Those who are unable to make the transition from education to work or further training risk becoming part of the NEET group, the report said.

Wide gap

The report highlights a widening gap between education and employment. Only 8.25 per cent of graduates are working in jobs that match their qualifications, while around 88 per cent of NEET youth are engaged in domestic work and caregiving, with women accounting for the largest share.

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The report classifies India’s youth into five broad categories: Those attending school, pursuing tertiary education, engaged in formal or informal work, women engaged in domestic work and those not in education, employment or training.

Why educated youth are getting stuck

The report said young people in the NEET category often find themselves stuck after spending years and money on formal education without securing a job or earning an income. This makes it difficult for them to spend more on additional skill training.

“NEET youth are constrained by the absence of income and the sunk cost of prior education. Students often cannot layer paid skilling onto existing financial commitments,” it said.

The report identified several barriers preventing young people from entering employment or training, including poverty, family pressure, unsafe transport, lack of career guidance and early marriage.

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It noted that some graduates eventually take up formal employment simply to earn an income and support their families, even if the job is low-paying or does not match their qualifications. Others struggle to make the transition from education to employment and eventually become NEET.

NITI Aayog’s recommendations

To bridge this gap, NITI Aayog has recommended heavily subsidised or free training programmes focused on self-employment and local market needs. It has also suggested introducing practical and vocational subjects early in secondary school, noting that fewer than one in 12 schools currently offer them.

The report also pointed out that despite substantial funding from the Centre for youth skilling, outcomes have remained uneven. The Union Budget has allocated Rs 34,000 crore for skilling-related projects across ministries.

Simply increasing enrolment in training programmes, the report said, has not translated into employment because of the lack of stronger links with the job market. It noted that many existing programmes operate on the assumption that graduates will enter a job and remain employed.

Digital, practical push

NITI Aayog has suggested creating a unified digital tracking system to maintain a learner’s complete record of education, formal certifications and practical work experience. It has also recommended shifting higher education away from generic degrees towards industry-aligned specialisations and making apprenticeships a mandatory part of training.

For women, the report recommended flexible training hours, local childcare support and safe transport to help them return to the formal workforce.

“For the workforce and NEET youth, the need shifts towards mid-career reskilling, self-employment pathways, and learning options aligned to local demand and emerging sectors,” the Aayog said.