India has around 10,000 engineering colleges and 5500 management institutes producing each year over 16 lakh engineers and over 5 lakh management graduates, data from All India Council of Technical Education (AICTE) and ASSOCHAM say.
And most of them are unemployable.
While AICTE says some 60-70 per cent of engineers remain unemployed, an ASSOCHAM study has found that only 7 per cent of our management graduates are employable.
Other reports by organizations like FICCI, EY and Aspire Minds quote even higher proportion of unemployable engineering graduates in the country, at 80 per cent. Studies also say that B and C category business schools are producing basically unemployable graduates and if some of them find jobs, it is mostly in the range of 8000-10,000.
They are in oversupply.
Estimates put 1-1.5 million Indians entering job market every month but the country could create only 1.55 lakh jobs in 2015 and 2.31 lakh in 2016. The situation is acute in case of professional education courses like engineering and management where students pay much higher but end up either jobless or with abysmally low paying sub-standard jobs.
If industry needs few lakhs of engineers every year, the proportion of management graduates is even less – at around 40,000 as some estimates put it.
So, basically there are no jobs for most of them, especially when job creation in the country is at eight years low.
And it is not that all the jobs created are going to them only. Others, from non-professional course, are competing for those illusive jobs as well. The Census of India 2011 put number of graduates and above at 6.8 crore.
Six years have passed since then and so the number would certainly have gone up. Many of them would in some job. Many of them would be some sort of entrepreneurs. But most of them would be either jobless or forced to earn their livelihood by trying their luck in the unorganized sector.