The employability of management graduates in India has declined in the past five years, as only 21 per cent of MBAs surveyed are ’employable’, a study has said.
According to the MBAUniverse.com–MeritTrac employability study 2012, which covered 2,264 MBAs from 29 cities and 100 B-Schools, beyond the Top 25, only 21 per cent are employable.
The previous study of 2007 by MeritTrac had placed employability index at 25 per cent.
However, the number of MBA seats in India has grown almost four fold — from 94,704 in 2006-07 to 3,52,571 in 2011-12 —- resulting in a five-year compounded annual growth rate of 30 per cent, but their employability rates have fallen, the study said.
The students were tested for verbal ability, quantitative ability and reasoning by using internationally standardised tests on behalf of recruiting companies.
The index of employability, at 21 per cent mark leaves scope for improvement considering that organisations hire from this talent pool for strategic roles and this is the managerial pool that companies bank on, the study pointed out.
”The results of 2012 employability report covering 2264 B-schools students from 29 cities are quite startling. This report clearly brings out the employability gaps across various competencies and highlights the need for scientific examinations and tests to align the candidate skills to employability metrics.” says S Murlidhar, CEO and director, MerittTrac Services.