A recent report titled Unstop Talent Report 2025 has shared important insights about the job market for young graduates. It shows that 83% of engineering graduates and 46% of business school graduates are unemployed. Additionally 51% of Gen Z professionals are choosing freelancing or gig work instead of regular jobs.

Changing Employment Trends

The report indicates that companies are changing how they hire employees. In the past, degrees from prestigious colleges were important. Now 73% of recruiters prefer skills over college names.

Additionally Gen Z professionals are taking up freelance work, side gigs and contract-based jobs for income. Companies in fields like e-commerce, startups and product development are leading in hiring.

Meanwhile businesses like Zomato and Meesho provide job opportunities to young people. They prefer candidates with practical skills and hands on experience instead of theoretical knowledge.

Gender Pay Gap and Salary Challenges

The report highlights a gender pay gap in some fields. Among arts and science graduates, two out of three women earn less than ₹6 lakhs annually. Male graduates usually earn more.

However in engineering and business fields, the pay gap is smaller. Wages are more balanced between men and women in these industries.

Preference for Performance Reviews

The report also found that 77% of Gen Z professionals want frequent performance reviews. They prefer reviews every month or after completing projects.

Also 71% of recruiters still conduct traditional annual or biannual reviews. This difference in preference shows a mismatch between companies and employees.

Internship Challenges

Unpaid internships have also become a major issue. In 2024 one in four students had unpaid internships. This number is twice as high as in 2023.

The increase in unpaid internships limits opportunities for fresh graduates. It prevents many from gaining fair and paid work experiences.

The Rise of Freelancing

Freelancing is now a popular choice for Gen Z professionals who want flexible and independent work. Jobs in content creation, software development, marketing and data analysis are available for freelancers.

The report shows that 51% of Gen Z professionals are earning through freelancing and part time jobs. Business school graduates show a stronger preference for freelancing. 59% of them choose side gigs for additional income. This preference shows Gen Z’s desire for financial independence and flexibility. Traditional jobs are becoming less appealing to them.

Skill Development Over Degrees

The report also emphasizes the importance of skills over degrees in hiring. Recruiters now focus on practical experience and certifications. Participation in case studies also attracts recruiters.

About 70% of Gen Z professionals join case study competitions, quizzes and simulations. However only 25% of recruiters use these platforms to find candidates. This indicates a gap in how companies identify talent.

The Unstop Talent Report 2025 calls for changes in both education and employment systems. Graduates should focus on gaining practical skills and working on real-world projects. Companies also need to adjust their hiring processes. They should focus on skills rather than degrees.

Freelancing offers financial flexibility and multiple income streams. Employers can further support young talent by providing paid internships and skill based hiring opportunities. Aligning their expectations with changing workforce trends will help businesses utilize Gen Z’s potential effectively.

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