Rethinking Higher Education
- Dr Sp Mishra
- Sep 27
- 4 min read
From Guaranteed Jobs to Gainful Engagement in a Turbulent World (ICC Blog # 122)
In the not-so-distant past, the promise of higher education was simple and reassuring: earn a degree, secure a job, and build a stable life. This linear path was the cornerstone of middle-class aspirations worldwide, particularly in emerging economies such as India. But today, that promise is unravelling.
Higher education no longer guarantees gainful employment. This is not just an Indian reality—it’s a global reckoning. From Silicon Valley to Bengaluru, graduates are grappling with underemployment, shifting job markets, and the rise of automation. It’s time to rethink what higher education is for—and what it should promise.
The Indian Paradox: Millions of Degrees, Few Formal Jobs
India produces over 10 million graduates annually, supported by a youthful population and a vast higher education system with more than 43 million students enrolled in tertiary programs. Yet, the formal job sector—defined by organised, salaried positions with benefits—accounts for only 5% to 10% of total employment.
The International Labour Organisation’s India Employment Report 2024 confirms this imbalance. While formal jobs saw an uptick of 1.45 million in March 2025, the overall labour market remains dominated by informal work. Unemployment among graduates is particularly alarming: independent estimates suggest rates as high as 51–57% in early 2025, far exceeding the official figure of 5.6%.
This mismatch between education and employment has sparked widespread debate. A Reuters poll in July 2025 revealed that over 70% of economists questioned the accuracy of India’s official labour statistics.
A Global Shift: Technology, Turbulence, and Transformation
India’s struggle is part of a broader global trend. The World Economic Forum’s Future of Jobs Report 2025 projects that by 2030, the global labour market will undergo a 22% churn—displacing 92 million jobs while creating 170 million new ones. That’s a net gain of 78 million roles, many of which don’t yet exist and will be driven by AI, sustainability, and digital innovation.
Automation is a key disruptor. A McKinsey study estimates that 30% of U.S. jobs could be automated by 2030, with up to 60% significantly altered. In India, sectors like IT and manufacturing are already feeling the impact. PwC’s 2025 Global AI Jobs Barometer reveals that AI is accelerating productivity but also reshaping roles, making skills like data analytics, machine learning, and digital literacy indispensable.
Geopolitical Tensions and Economic Fragmentation
Compounding these technological shifts are rising geopolitical tensions. Conflicts in Ukraine and the Middle East, U.S.-China trade wars, and the rise of far-right leaders in Europe have created a fragmented global order. The WEF’s Global Risks Report 2025 ranks cyber warfare and economic fragmentation among the top threats to global stability.
In India, this manifests in policy shifts like “Make in India,” which aim to boost domestic manufacturing but also expose vulnerabilities in global supply chains. EY’s 2025 Geostrategic Outlook highlights economic sovereignty and national jingoism as growing challenges.
Ironically, while communication technologies and global businesses expand, societies are becoming more insular. Leaders increasingly prioritise short-term, transactional gains over long-term global cooperation.
The Role of Education: Beyond Credentialing
In this rapidly changing and fragile world, educational institutions must adapt and evolve. Their role is no longer just to impart knowledge or facilitate placements. They must prepare students for uncertainty, complexity, and lifelong learning.
As Mahatma Gandhi wrote in Towards New Education,
“By education I mean an all-round drawing out of the best in child and man—body, mind and spirit.” Gandhi’s philosophy of Nai Talim emphasised learning through productive work, self-reliance, and moral development. His vision remains strikingly relevant today, urging us to move beyond rote learning and credentialism toward a model that nurtures character, creativity, and community.
Sir Ken Robinson echoed this sentiment: “The great end of education is to discipline rather than to furnish the mind; to train it to the use of its own powers, rather than fill it with the accumulation of others.” Malcolm Forbes added, “Education’s purpose is to replace an empty mind with an open one.” In a world where knowledge becomes obsolete quickly, curiosity and agility are the new currency.
From Job Seekers to Job Creators
India’s demographic dividend can be a powerful asset—if harnessed correctly. But this requires a shift in mindset. Students must be encouraged to become job creators, not just job seekers.
Imagine if every student entering college knew that a degree isn’t a ticket to a multinational job. They would approach learning differently—not as a checklist, but as a toolkit for life. They’d focus on mastering their subjects, building networks, and exploring real-world applications.
As Dr Anil Sahasrabudhe, former Chairman of AICTE, emphasised, “We need to create an ecosystem where students are encouraged to innovate, take risks, and build enterprises. That’s the future of education.”
Lifelong Learning Is the New Norm
The concept of a formal job leading to retirement is fading. UNESCO stresses that lifelong learning is essential for employability in a dynamic world. With AI and sustainability trends driving transformation, the future demands agility.
Henry Ford captured this ethos perfectly: “Anyone who stops learning is old, whether at twenty or eighty. Anyone who keeps learning stays young.”
In India, the job market is projected to grow by 9% in 2025, led by IT and retail. But success will depend not on degrees, but on the ability to learn, adapt, and apply knowledge in real-world contexts.
A New Promise: Gainful Engagement
It’s time for a new narrative. Instead of promising “employment,” institutions should pledge to ensure students are “gainfully engaged.” This means equipping them with skills for entrepreneurship, freelancing, innovation, and social impact.
Educational institutions must have the courage to tell the truth. Students and parents deserve transparency. And those institutions bold enough to embrace this shift will be the ones that truly prepare the next generation—not just for jobs, but for life.
Sources: Global Reports and Data
New norm of higer education .. what is it? Gainful engagement ! Let me put the same different way... Education is unavoidable for any individual now e days. Questions how to GET IT WITHOUT GETTING LOOTED IS THE ISSUE.. As a Professor I set this as NORM for the Gen Z adult students.. Damaged least, Quickly made it, Affordable Cost is fine.. This is the success formula with regard to education. Education is not about getting a certificate. It is KSAs, Knowledge, Skills, Habits, and Attitudes Values etc.. This Human Capital can be cultivated through this new norm.. Damaged Least. in an Affordable way..