(via Mckinsey) India produces close to 4 lakh engineering graduates every year from 1,346 institutions. Some choose to pursue further studies in India and abroad, some get jobs but most keep job hunting or start up a small business. Net only 25% that graduate are employable. This additional 75% create huge inefficiencies in corporate hiring, disappointed and clueless engineers constantly subject social pressures, ” you finished engineering what are your plans “, anxious parents having spent a good part of their savings on tution, boarding, coaching classes and many times a fat donation to private engineering colleges. Bottomline we have a problem ? of course many will have suggestions and economists will even massage the numbers to either hype or downplay the problem with realtivity. I think the problem is social in nature, society and parents of college ready kids need to understand that all engineers do not get jobs, all engineering colleges are not good, you can make a decent living with other educational qualifications, India needs professional plumbers, electricians, carpenters and artists, whose skills are so scarce that anyone will tell you the horror tales of get a good one to get the job done. In developed markets these vocations make as good a living as engineers and sometimes better, since lot of their payments are cash and not meticulously declared.