83% of engineering graduates unemployed or without internship placements, says report

A recent study provides shocking figures regarding the employability of fresh graduates, with 83% of E-school and 46% of B-school graduates remaining unemployed or being offered an internship. With great demand for skilled personnel, the study indicates that the gulf between graduate aspirations and the job market is huge, with many failing to find their first job.

As per the Unstop Talent Report 2025, presented at the Unstop Talent Meet in Bangalore, the woes of young professionals are exacerbated by other important changes in recruitment patterns. One of the more dramatic findings is the increasing desire for multiple income sources, with more than half of GenZ professionals—51%—looking for freelancing and side hustle opportunities. Among B-school graduates, this figure climbs to 59%, underscoring a growing shift in how the next generation views career paths.

Gender Pay Gaps and Talent-Based Hiring Trends

The report also identifies a disconcerting gender pay gap in some sectors. Two out of every three female Arts & Science graduates receive less than Rs 6 LPA, whereas their male peers tend to earn significantly more. Yet, the study presents a better scenario in E-schools and B-schools, where pay equity appears to be upheld irrespective of gender.

A landmark change in the way employers are hiring is seen with 73% of recruiters now favoring talent over the old status symbol of top college labels. The shift to skills-based hiring has been viewed as a reaction to the changing needs of the work environment, as most firms increasingly look for practical skills rather than just educational qualification.

GenZ's Shifting Workplace Expectations

As GenZ workers enter the workforce, so too are their expectations of employers changing. An impressive 77% of them now prefer reviews on a monthly or project basis to traditional annual reviews. The fact that this is now the preferred method for feedback shows there is a demand for more fluid and interactive working environments.

Additionally, 70% of GenZ candidates participate in innovative recruitment practices like case studies, ideathons, and simulations. Yet only 25% of recruiters at present find them integral to their recruitment strategies, reflecting a misalignment between talent and recruiters when it comes to performance measurement and hiring.

Dream Employers for GenZ: The Rise of Next-Gen Companies

Technology behemoths like Google, Microsoft, and Amazon remain high on the list of most coveted employers for E-school and B-school graduates. Nonetheless, there is a new wave of GenZ professionals who favor next-gen businesses, and the clear favorites among these are Zomato and Meesho. These organizations, which have dynamic and competency-based positions, attract young professionals who value advancement and flexibility over conventional corporate environments.

Key findings of the report

The Unstop Talent Report 2025 provides the following key insights into the modern job market:

The report spells out a clear future for recruitment. As employers increasingly adopt a skills-first approach, we can expect to see more diverse hiring practices that center around what job candidates can do, not where they have come from. This trend not only mirrors the shifting values of GenZ professionals but is also a strategic play for companies that want to be competitive in an increasingly changing jobs market.

As the report points out, organizations that conform to these trends—by stressing capabilities, providing regular feedback, and welcoming emergent industries—will gain a competitive advantage in hiring and keeping the best talent.