Unemployment among the youth is a significant concern in India, and while the data from the International Labour Organization (ILO) on India’s employment scenario may be open to interpretation, there’s another statistic that demands attention. The Department of Economic Affairs’ 2024 review reveals that the employability percentage of pre-final and final-year students in India stands at only 51%. This shortfall, combined with the country’s vast middle-class population, underscores why students and parents prioritize college selection based on the quality of placements. In contrast to developed nations like the United States, where career centers focus on broadening students’ horizons through resume-building workshops, industrial meets, and career fairs, Indian institutions are expected to secure direct industry placements for their students. As a result, competition among institutions revolves around their placement statistics, with rankings often reflecting these numbers.
The New Realities of Placements
In 2024, reports have indicated a significant reduction in placements across Indian higher educational institutions, with declines ranging between 30% and 70%. The number of offers from major companies has dwindled, accompanied by lower salary packages. Global economic headwinds, including mass layoffs and a prolonged hiring slowdown, have had a profound impact on the educational sector, with both government and private institutions experiencing a 15% to 30% drop in recruiter participation. Tier-2 colleges, which have traditionally relied on service-based IT companies, are expected to face the harshest consequences. Indian software services firms are projected to end FY24 with the lowest intake of fresh engineers in over a decade, hiring between 70,000 and 80,000 new graduates.
This slowdown is complex, driven by a mix of global and local factors. Economic uncertainty, rapid technological advancements, shifting workforce preferences, and the rise of remote work have all contributed to the current situation. Post-pandemic changes in hiring practices, cost-cutting measures, and the growing influence of AI/ML technologies have further exacerbated this trend. Ongoing conflicts around the world and upcoming elections in various countries have only added to the uncertainty. Given these challenges, how can educational institutions mitigate risks and better prepare their students for the evolving job market? Here are three strategic approaches:
1. Implementing Longer Internships
To equip students with industry-ready skills, institutions need to revise their curricula to allow for extended periods of industry exposure, ideally for a minimum of six months. These internships should be coordinated by a dedicated division within the institution that actively builds and maintains strong industry connections. A faculty team should oversee and evaluate the students’ work during these internships. To facilitate this process, AICTE and UGC should consider creating local clusters of industries and academic institutions. Additionally, government policies could encourage or mandate industries to offer training opportunities as part of their corporate social responsibility (CSR) initiatives. For students not inclined to join the workforce immediately after graduation, these semester breaks could be utilized for research or entrepreneurial pursuits.
2. Enhancing Placement Services
Institutions must strengthen their placement teams to provide comprehensive career guidance and interview preparation, thereby increasing students’ employability. It’s crucial to organize dedicated events to attract startups and expose students to alternative career pathways beyond traditional IT roles. Expanding career services to include personalized mentorship and career counseling can significantly improve placement outcomes.
3. Leveraging Alumni Networks
Alumni networks are an invaluable resource for enhancing placement opportunities. Expanding and actively engaging these networks can provide students with mentorship, industry insights, and connections that facilitate smoother transitions from academia to industry.
Preparing Students for a Changing Job Market
While institutions must adapt to the shifting dynamics of campus placements, students also need to take proactive steps to secure their future:
1. Specialization
The future of work increasingly favors specialists over generalists. As AI/ML technologies continue to evolve, jobs requiring general skills are likely to be automated. In contrast, those with specialized expertise will find more sustainable career opportunities. Students should pursue higher degrees, such as a master’s or PhD, not necessarily to become academics but to gain a structured approach to problem-solving and innovative thinking. Such qualifications can also open doors to deep-tech startups and other cutting-edge fields.
2. Embracing Self-Learning
In an ever-changing job market, self-learning is essential to stay updated on emerging technologies and industry trends. Institutions should encourage students to engage in self-directed learning as part of the curriculum, moving beyond traditional teaching methods that focus solely on testable knowledge.
3. Diversifying Skill Sets
Students should cultivate a diverse range of skills, both technical and soft, to thrive in dynamic work environments. Networking with professionals, attending industry events, and participating in continuous professional development are key strategies for enhancing career prospects and expanding one’s professional horizon.
Educational institutions play a pivotal role in shaping the future of their students. By adopting these strategies, colleges and universities can not only improve placement outcomes but also better prepare their students for the challenges of a rapidly changing job market.Contact Sankalp Maheshwari to leverage the skillset of your students and enhance their employability. Visit www.intellectualindians.com for more information.