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The Educated Unemployed: Evaluating the Effect of PMKVY on Employment Outcomes for India’s Educated Youth

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Authors : Aditi Tiwari , Aditi Thakur , Upama Paul

Citation

Aditi Tiwari, Aditi Thakur, & Upama Paul. (2026). The Educated Unemployed: Evaluating the Effect of PMKVY on Employment Outcomes for India’s Educated Youth. Institute For Policy Research and Governance, 1(19). https://doi.org/10.5281/zenodo.23261717


Abstract

India’s unemployment sector showcases an unusual trend. Unemployment rises with education rather than falling. This study is being conducted to find whether the source of this issue lies in the demand side or the supply side of the sector. The supply side predicts that the issue lies with the lack of skills within the youth. Whereas the demand side of the issue states the problem lies in the volume of formal wage jobs present in the economy. We find through our research that available evidence is stronger in support of the demand side explanation of the problem. This evidence is presented through the administrative and audit reports of Pradhan Mantri Kaushal Vikas yojana, the periodic labour force data and the CAG’s 2025 report. The analysis relies on aggregate secondary data rather than individual level data, therefore these findings are presented as associations and not established causal effects. The study showcases how while upskilling is important, it is not enough to solve the problem of educated unemployment within the country.

Keywords: Educated unemployment, Periodic Labour Force Survey, skill development, PMKVY, labour demand

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