India’s Engineering Crisis: Unstop’s massive survey of 30,000+ professionals reveals unemployment catastrophe as 1.5 million graduates compete for dwindling opportunities
The dream of engineering prosperity in India just became a nightmare. According to the explosive Unstop Talent Report 2025, a staggering 83% of engineering graduates from the class of 2024 remain without job or internship offers – representing hundreds of thousands of skilled young professionals facing an uncertain future.
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The Scale of the Employment Catastrophe
Based on a comprehensive survey of 30,000+ Gen Z professionals and 700 HR leaders, these aren’t just statistics – they represent real families, dreams deferred, and a systemic crisis in India’s most popular career path.
Engineering Employment Crisis Breakdown
| Graduate Category | Unemployment Rate | Impact |
|---|---|---|
| Engineering Graduates | 83% | ~1.25 million jobless |
| B-School Graduates | 46% | Hundreds of thousands |
| Arts & Science (Female) | 67% earn <₹6 LPA | Gender pay gap persists |
| Annual Engineering Output | 1.5 million graduates | Only 10% secure jobs |
| Unpaid Internships | 1 in 4 (2024) | Doubled from 2023 |
The New Reality: Skills Over Degrees
In a dramatic shift, 73% of recruiters now dismiss premier college tags in favor of talent-based hiring. The IIT/NIT advantage that previous generations relied upon is rapidly eroding as companies focus on demonstrable skills over institutional pedigree.
The Gig Economy Escape Route
Faced with traditional employment scarcity, 51% of Gen Z professionals are pivoting to freelancing and side hustles. Among B-school graduates, this number jumps to 59%, signaling a fundamental shift in career expectations and financial strategies.
Where the Jobs Actually Are
The report reveals that 25% of job offers now come from next-gen industries – e-commerce, startups, and product companies. Traditional manufacturing and services are no longer the primary employers, creating a mismatch between educational focus and market demand.
Top Employer Preferences:
- Engineering Grads: Google, Microsoft, Amazon
- B-School Grads: Google, McKinsey, Microsoft
- Gen Z Favorites: Zomato, Meesho (emerging companies)
The Unpaid Internship Exploitation
Perhaps most alarming is the doubling of unpaid internships – from 1 in 8 students in 2023 to 1 in 4 in 2024. This trend forces graduates into exploitative situations while companies benefit from free labor, further undermining fair employment practices.
What’s Driving This Crisis?
Ankit Aggarwal, Founder and CEO of Unstop, emphasizes that “organizations must move beyond legacy hiring practices and embrace a skills-first approach.” The disconnect is clear:
- 77% of Gen Z prefer monthly/project-based reviews
- 71% of recruiters still rely on annual evaluations
The Gender Divide Reality
While engineering and B-schools show pay parity, two in three female arts & science graduates earn below ₹6 LPA, while male counterparts largely surpass this mark. Progress exists but remains uneven across disciplines.
What This Means for India’s Future
With 1.5 million engineering graduates produced annually but only 10% securing traditional employment, India faces a potential social and economic crisis. The traditional engineering-to-employment pipeline that built India’s tech reputation is fundamentally broken.
For students and families investing in engineering education, this data demands urgent reevaluation of career strategies, skill development focus, and realistic expectations about post-graduation employment prospects.
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