Why Some IIT Graduates Are Struggling to Find Jobs:
Unraveling the CrisisThe Indian Institutes of Technology (IITs) have long been synonymous with academic excellence, producing some of India’s brightest minds and securing their reputation as gateways to lucrative careers. However, recent reports reveal a startling trend: a significant number of IIT graduates are struggling to secure jobs through campus placements. In 2024, approximately 38% of IIT students across 23 campuses—around 8,000 graduates—remained unplaced, a sharp rise from 19% in 2021 and 21% in 2022. This growing challenge has sparked concerns about the employability of even the most elite graduates. Let’s explore the key reasons behind this phenomenon.
1. Economic Downturn and Global Market Shifts
The global economy has been navigating turbulent waters, with slowdowns affecting industries worldwide. Since January 2022, around 400,000 employees in the technology sector alone have faced layoffs globally, with companies implementing hiring freezes and cost-cutting measures. This downturn has hit the IT and consulting sectors—traditional recruiters at IITs—particularly hard. Companies like Amazon and Goldman Sachs, which once hired in large numbers, have scaled back campus recruitment due to overhiring during the COVID-19 pandemic and a shift toward automation and AI-driven processes. At IIT Bombay, for instance, 36% of students registered for 2024 placements remained unplaced, partly due to companies’ reluctance to commit to pre-decided salary packages.
2. Skill Gap Mismatch
The rapid evolution of technology has outpaced the curriculum at many IITs, creating a disconnect between what students learn and what employers demand. Fields like artificial intelligence, machine learning, and data science require specialized skills that traditional engineering programs may not adequately cover. Many graduates lack hands-on experience or proficiency in cutting-edge technologies, making them less competitive in a job market increasingly dominated by AI-enabled software and automation. For example, it’s estimated that 33% of software development is now handled by AI, reducing the need for entry-level engineers.
3. Overreliance on Campus Placements
IITs have historically been synonymous with high-paying campus placements, fostering a culture where students rely heavily on the institute’s placement cell. However, this dependence can leave students unprepared for off-campus job searches. Many lack the soft skills, networking abilities, or initiative required to seek opportunities independently. Additionally, some students reject campus offers if the roles or salaries don’t meet their expectations, opting instead to pursue higher studies, government exams, or startups. This trend is evident as only 70-80% of graduating IITians register for placements, with others exploring alternative paths like entrepreneurship or UPSC exams.
4. Limited Industry Exposure
Many IIT programs emphasize theoretical knowledge over practical, industry-relevant training. This gap makes it challenging for graduates to transition seamlessly into professional roles. Unlike global counterparts in countries like Japan or South Korea, where engineering curricula are aligned with industry needs, many IIT students lack exposure to real-world applications. The absence of robust internship programs or industry collaborations further exacerbates this issue, leaving graduates ill-equipped for the demands of modern workplaces.
5. High Expectations and Salary Disparities
IITs often focus on securing high average salary packages to maintain their prestige, but this can create unrealistic expectations among students. In 2024, while some graduates secured packages exceeding ₹1 crore, others received offers as low as ₹3.6 lakh to ₹6 lakh annually. Students often decline lower-paying jobs, hoping for better opportunities, which contributes to the unplaced numbers. Additionally, the allure of non-engineering fields like finance and consulting, which require additional qualifications like an MBA, diverts many graduates from traditional engineering roles.
6. Rise of AI and Automation
The advent of technologies like ChatGPT and large language models has reshaped hiring practices. Companies are increasingly relying on AI to perform tasks previously handled by entry-level engineers, reducing hiring needs by up to 30%. This shift is particularly pronounced in the IT sector, where roles are being consolidated, and two people can now perform the work of three.
Conclusion: A Call for Adaptation
The job crisis among IIT graduates is a complex issue driven by economic challenges, outdated curricula, and shifting industry demands. To address this, IITs must modernize their programs to include emerging technologies, foster partnerships with industries, and encourage entrepreneurial skills. Students, too, need to adapt by upskilling, networking, and exploring diverse career paths beyond campus placements. While the IIT brand remains strong, collaboration between institutes, students, and industry is crucial to ensure that graduates remain competitive in an ever-evolving job market. The road ahead requires resilience, innovation, and a willingness to embrace change to restore the promise of an IIT degree.
