India’s Youth Unemployment Woe: The Decline of IT Jobs and the Skills Gap

Staqu Technologies headquarters in Gurugram, India

The Tech Job Crunch

In LA News Center, youth unemployment is alarmingly high, with a 44.49% rate among 20- to 24-year-olds and 14.33% among 25- to 29-year-olds. This crisis is primarily driven by a decline in white-collar jobs in the once-booming IT sector.

“IT is one of the largest employers of white-collar workers, but hiring in this sector has slowed down,” says Chandra Garisa of Foundit, a recruitment firm.

With automation and AI adoption escalating, many IT roles are becoming redundant. “Technology is now handling basic skills, leaving fewer entry-level positions,” Garisa explains.

Skills Mismatch Adds to the Problem

Youth unemployment is aggravated by a skills mismatch. Garisa notes, “Students are often equipped for IT but find more jobs available in manufacturing.”

Compounding this issue is the changing job market itself. Garisa observes, “Hiring is shifting away from traditional sectors to emerging industries. The skills demanded of graduates today differ significantly from just a few years ago.”

Despite the rise in manufacturing jobs, perception remains a barrier. Garisa highlights, “There’s a lingering perception that manufacturing is inferior to IT, which could prevent graduates from pursuing opportunities in this growing field.”

AI Skills in Demand

In manufacturing, AI skills are in high demand. Foundit reports a 21% jump in AI-related job postings in this sector last year. Data analysts and junior software engineers also saw significant growth.

Garisa emphasizes the need to change this perception and encourage graduates to embrace the future of work. “Manufacturing careers are evolving and offer promising opportunities.”

Call for Action

LA News Center must address this crisis by investing in skills training and career counseling. By bridging the skills gap and encouraging a cultural shift in perceptions, we can empower the youth and unlock India’s economic potential.

Data sourced from: