Indian graduates’ employability drops to 42.6%: Mercer Mettl report highlights skill gaps

A recent report by Mercer Mettl has revealed a concerning dip in employability among Indian graduates, falling from 44.3% in 2023 to 42.6% in 2024. The decline, according to the India’s Graduate Skill Index 2025 report released on Tuesday, is largely attributed to a lack of non-technical skills, even as employability in technical roles has shown a slight improvement.

The report is compiled from data across 2,700 campuses in 31 states and union territories and assessing over one million students. While technical proficiency shows promise, the gap in non-technical skills is emerging as a major roadblock for graduates entering the workforce.

Delhi leads in employability

Among Indian states and union territories, Delhi emerged as the most employable region, with a score of 53.4%, followed closely by Himachal Pradesh and Punjab, both registering 51.1%. Notably, graduates from Tier 1 colleges displayed superior employability across both technical and non-technical roles. However, the report underscores that talent from Tier 2 and Tier 3 colleges also shows significant potential, indicating an untapped resource pool for businesses.

Non-technical skills lag behind

The sharpest drop was noted in non-technical roles, where employability fell from 48.3% in 2023 to 43.5% in 2024. Roles like HR associates and digital marketers showed particularly low employability rates at 39.9% and 41%, respectively. Business analyst and project management roles saw slightly higher figures, standing at 44.5% and 45.1%.

Technical roles show slight improvement

In contrast, technical roles saw modest growth, with employability rising from 41.3% to 42%. AI and machine learning roles showcased the highest employability at 46.1%, while data scientist and back-end developer roles remained low at 39.8%.

The report also emphasised the growing importance of soft skills, particularly in an era of increasing automation and AI integration. Over 50% of graduates demonstrated competence in communication (55.1%), critical thinking (54.6%), and leadership (54.2%). However, creativity remains an area of concern, with only 44.3% of graduates deemed employable in this essential skill.