Unemployment Rate in India decreased to 5.20 percent in 2012 from 6.30 percent in 2011.Unemployment Rate in India averaged 7.58 percent from 1983 until 2012, reaching an all time high of 9.40 percent in 2009 and record low of 5.20 percent in 2012.Unemployment Rate in India is reported by the Ministry of Labour and Employment,India. The unemployment rate for youngsters aged between 15 and 29 has increased marginally in India between 2009-10 and 2011-12 fiscals while the overall unemployment rate has remained almost unchanged during the period. About 285 million Indians fall in the 15-29 age group, which is about 9 of India39s population of 1.2 billion people. They are also the ones joining the workforce. Increase in the unemployment rate by one percentage point in a period of two years hints that youngsters are facing difficulties in getting jobs. A study conducted by the National Sample Survey Office NSSO on one lakh households across India also showed those with secondary and higher secondary as minimum education qualification were the worst-affected. quotAt this level of educational qualification, there is maximum competition for jobs,quot said an NSSO official. quotThose with lesser qualification are willing to do any sort of work and those with higher qualification get jobs because of their education level,quot the official added. The NSSO also said the unemployment rate for youngsters was higher in urban areas than that in rural India. quotThe unemployment rate for the youth was 5 for rural males and females, and 8 and 13 for urban males and females, respectively,quot the report said. Among the Indian states, the unemployment rate for the youth in rural areas was highest in Kerala followed by Assam and Uttarakhand. In urban India, the unemployment rate was highest in Jammu and Kashmir followed by Kerala and Assam. India is shining and progressing with an amazing growth rate. Growth rate of India is the second highest in the world after that of China. The youth force of India are contributing lot to the same. It is believed that principal reason behind Indian progress is its youth force, highest in number in the world. However, there is a problem. Large numbers of Indian youth are not only unemployed but unemployable. There are two new world leaders China in manufacturing sector and India in service sector. Large numbers of white, blue and green collar jobs are waiting for suitable candidates. Indian youth force, behind the progress of India, is mainly engaged in IT sector. India is a leader in software and the industry is continually offering white collar jobs besides some blue collars. India is also world leader in BPO Business process out sourcing and KPO Knowledge process out sourcing. Large numbers of call centers are contributing to the industries and trades of America the US, UK, Australia, Japan, European Union, Canada and many other developed countries. BPO sector needs large number of blue collars where as KPO industries require and offer white collar jobs. IT industries has seen a tremendous boom in India. This industry has employed large number of educated youth with handsome salary. Normally, IT is the highest paid sector. Management, banking, finance, retail, telecommunication, entertainment etc. are some other new sectors that helped India in her tremendous growth. Typical Problem These sectors have started facing a typical problem. Despite large numbers of educated young, there is shortage of skilled manpower. This is the dilemma. There are unemployed youths and the companies are facing shortage of manpower. A recent survey throws light on the problem, problems with the educated youth. They are mainly lacking three types of skills required in the industries.. 1. Communication skill 2. Analitical skill and problem solving 3. Domain. While in interview approximately sixty percent candidates are screeneddue to lack of communication skills. Rest twenty five percent are screened for analytical skills and five percent for their lack of knowledge in their respective domain. Hence ninety percent of educated youth force are lacking in one of these three main skills required for job and employment.Only ten percent of educated force of India is employable . Employers are struggling hard to attract them with huge pay-packages that is increasing their production cost significantly. The employers are loosing their competitive edge in global markets. Global slow down only adds to the crisis. Corporations are now facing dual problem. The problem lies in the education system. Indian education system has a mismatch with the requirements of the industries. Institutes teach what ever they want. They do not teach what industries require. Industries do not require what institutes teach. The syllabus committees have not been interfacing with the industries. Several big industries have to set-up their own in house training program to fight with the problem. Most of the newly employed youths are compulsorily undergone employers own training program. This enhances cost of employers enormously. It also wastes time.