Root Causes Leading to Low Employ-ability of College Graduates


The graduate unemployment rate is one of the current issues being discussed by higher education scholars. College students spend their time and money in order to receive educational advantages unavailable to high school graduates. So if they face unemployment, they are more vulnerable to unfavorable economic conditions because they have already spent their resources pursuing higher education. This paper examines the reasons why college graduates are facing unemployment in the competitive market. There are several factors that explain their unemployment status, and this paper identifies each component at an individual level. With specific analysis of the unemployment phenomena, this paper provides direction for further research.

The overall rates of employability of fresh graduates in India is steeply declining, and there are various reasons for the same. India produces around 15,00,000 engineers every year. Of these, almost 40 per cent scout for a job for almost a year, while around 22 per cent take almost two years before bagging a job, according to HR firms.

The major cause of unemployment and underemployment in underdeveloped countries like India is the deficiency of the stock of capital in relation to the needs of the growing labour force.

The reasons vary from Outdated Curriculum, Lack of Practical application, Lack of Industry Exposure, to Wrong Career Choices. Proper screening methodologies must be implemented by both institutions and students themselves before enrolling oneself into Engineering. Various cases are such that due to peer pressure or family made choices or the lucrative opportunities that a professional life in the technology industry has provided, has made engineering sciences the de-facto choice for graduate studies. Whether or not the student has the aptitude for the stream is not taken into account, resulting in uninterested engineering candidates, who haven’t taken to their subjects as much as they should have, making them irrelevant to the industry.

To some extent, the service sector has offered more unskilled jobs such as bar work, supermarket checkout and waiters. However, the nature of the labour market is that many young people lack the necessary skills and training to impress employers. For example, in UK, youth unemployment is often focused in certain areas – often inner cities where there is a cycle of low achievement and low expectations. For example, the employment rate for 16-24 year-olds is only 64% in the North East compared to a national average of 70%.

Youth unemployment is often highest amongst deprived areas where there is pessimism over job prospects. Youth unemployment is often higher among people who have a history of broken families, drug use or criminal record. Youth unemployment is also higher amongst ethnic minority groups. In 2016, the unemployment rate for young Bangladeshi and Pakistani people aged 16-24 was 28%. This compared to youth unemployment rates of 12% for the White ethnic group and 25% for people from a black ethnic background.

Higher education plays a critical role in training future community members based on social demands. After finishing their college education, graduates expect they will find a higher valued job compared to those of high school graduates, and the extension of unemployment has a negative effect on the wellbeing of individuals. The fear of unemployment influences how students plan for their careers, which is why it is a genuine concern at the hour.

Becoming a competent worker in society is the first step in demonstrating their ability, and the transition from student to worker through schooling is a positive cycle for a sustainable society. Well-educated workers contribute to resolving social issues and create a sound foundation of social standard. Furthermore, proper hiring by a company allows society to fill any unmet needs such as college debts and poverty. While over-education is due to redundant educational services from institutions, the gap in individual perspective is related to the preferences and priorities of the individual. In consideration with the market factors, the combination of both components is necessary to fully understand the issue of unemployment.