The High Cost of Learning Nothing: The Degree Trap

The Degree Trap: When Education Becomes a Debt Without a Job

By Sarah Khan

Every year youth leaves their home with a hope of – a great degree, a great job and a better life. Parents sacrifice their savings, and many times take loans while their children study years. After finishing degrees, they feel that their future is secure now. But after having degrees, the search for job makes them face a different reality. Although the number of degrees has increased, the number of course choices have increased and, the number of students graduating have also increased over the years, the unemployment rate among graduates remains high.

International Labour Organisation and Institute for Human Development had released India Employment Report 2024 in which it was found that nearly 83% of unemployed workforce in India comprises youth, with educated young minds facing increasingly higher joblessness rates. The number of educated youth (secondary education or higher) among all the unemployed ones had jumped from 35.2% in 2000 to 65.7% in 2022. Even though education is increasing, unemployment is increasing, too. This doesn’t mean that education is worthless. Infact, it raises the question whether India's economy is generating such jobs at the same pace as the increasing number of degree-holders.

The connection between education and job is not as direct as the families had been informed for years. This implies that the problem is not just that today’s youth doesn’t have a degree. The problem is also that suitable employment is not being generated for the degree holders. A boy from rich family can take a year off after a degree to prepare for competitive exams without the urgency to earn. However, a boy from such a family whose household expenses depend on his job, has to urgently find a job to sustain his family expenses. Thus, the gap between degree and job also highlights the obstacle of social inequity.

When you have to take "any job" even after getting a degree

Here, we come to a new question – is getting a degree the ultimate success, or is it also important to get a job according to one’s skills and qualifications?

An engineering graduate is working in sales. A postgraduate is working in telecalling. A commerce graduate is working in data-entry job. A journalism graduate is searching for a permanent job even after months of internship. It would be wrong to call any of these jobs as insignificant. Every honest job has its own dignity. But the problem arises when there remains no connection whatsoever between a degree and employment.

International Labour Organisation (ILO)’s research says that in developing economies, the problem is not merely the number of jobs available, but also the quality of the jobs and their alignment with qualifications.

Competitive Exams: A Job Hunt or Just Another Wait?

When people can’t find stable, well-paying jobs in the private sector, many young people turn towards government jobs. Government jobs don’t just promise a stable income, but also societal dignity and a secure future. But a labyrinthine trap could emerge here as well.

A young person completes her graduation. Then she starts preparing for UPSC, SSC, banking, railway, teaching or any other such exams.

One attempt, second, third…

During this time, the person’s age keeps increasing, but her career has not yet started. And every year, lakhs of young people compete for a limited pool of government jobs.

This doesn’t imply that it’s wrong to prepare for competitive exams. The question here is – are the young people only left with a few secure career paths?

The cost of degree shouldn’t just be measured by the tuition fees. It also includes hostel, transport, books, coaching, laptop, internet, entrance exams, relocation and, opportunity cost of four or five years.

When a family sends their child to college, they aren’t just spending on his education. But they’re also investing in his future. This is why when a job isn’t secured after obtaining a degree, the lost isn’t just borne by the unemployed youth alone. Their family’s years of savings, time, and hopes are also at stake.

The problem between education and employment doesn’t mean that youth should stop going to colleges. According to the India Employment Report 2024 by the Institute for Human Development (IHD) and the International Labour Organization (ILO), the likelihood of securing formal and regular salaried employment is higher for highly educated youth compared to those with lower levels of education. Therefore, real problem is not degree, rather it’s the mismatch between degree and labour market.

India is in the need of such education system which prepares student not merely to pass the exams, but for changing job market. At the same time, the economy will also have to create such jobs where their skills can be utilised.

Biggest question: what are we teaching for?

Today, a young person is told – “If you study well, you’ll get a good job.”

But even after finishing study, if he or she has to search for employment for years, having to take a job below one’s qualifications, or – solely for the sake of a stable income – having to enter a field completely different from one’s preferences and training, then instead of merely blaming the youth, we should question the employment model as well.

India has the majority of young people. This could be demographic dividend. But merely having majority of young population is not enough. Youth demand quality education, relevant skills and dignified, stable employment, too. Otherwise, the story of a young person wandering in search of a job with a degree in hand will no longer be the story of just one individual. It would become a symbol of such economy where the cost of education is rising, yet post-education guarantees are weakening. A large youth population only becomes an economic benefit (dividend) if backed by quality education, health, and job creation; otherwise, high unemployment turns a potential asset into a socio-economic liability or a "demographic bomb".

Degrees will only become the gateway of success when adequate and dignified employment are offered at the other side of the door.