Archive · 27 Aug 2026
NITI Aayog Urges Skills-First Hiring as AI Threatens Workers
NITI Aayog says some jobs should not require a college degree if the work does not truly need one.
Instead, employers could test what people can do and accept skills certificates or work experience.
The plan would start with some public companies and common jobs such as customer service and maintenance.
The report also warns that artificial intelligence may change or remove some jobs.
Workers could need new training to stay employed.
New online tools would suggest careers and courses based on a person's skills and goals.
A digital passport could store verified education, training and work records.
The proposal also includes training leave, vouchers, loans and payments tied to successful training results.
NITI Aayog recommends removing degree requirements for jobs where degrees are not legally essential, beginning with selected PSUs and high-volume roles.
Its proposed Skills-First Hiring Mandate would prioritize National Skills Qualifications Framework levels, trade tests, ITI training, apprenticeships and Recognition of Prior Learning certificates.
The report warns that AI, automation and the green transition could displace mid-career workers without structured reskilling pathways.
Proposed support includes AI career tools, a Digital Skills Passport, upskilling leave, skill vouchers, loans and outcome-based financing.
The report cites low graduate-job alignment, limited apprenticeships among MSMEs and low formal employment among women as major challenges.
- Who
- NITI Aayog's Skill Development, Labour and Employment Division made the recommendations; the proposals target employers, workers, PSUs, MSMEs and training providers.
- What
- The report proposes skills-first hiring, AI-supported career guidance, digital skills records and expanded reskilling and apprenticeship financing.
- When
- The report was released last week; it also cites funding and pilots planned for financial years 2025-26 and 2026-27.
- Where
- The proposals apply across India, with state pilots proposed in Andhra Pradesh, Odisha, Uttar Pradesh, Bihar and Assam.
- Why
- NITI Aayog says degree-based hiring is poorly aligned with jobs and warns that AI, automation and other economic changes may displace workers without reskilling routes.
- Degree-filter proposal
- Remove degree requirements where degrees are not essential or required by statute, initially in selected PSUs and high-volume roles.
- Graduate-job alignment
- The report cites the Economic Survey 2024-25 estimate that only 8.25 percent of graduates work in roles aligned with their qualifications.
- Applications cited
- The report records 1.86 crore applications for 55,000 posts between November 2024 and July 2025.
- Reskilling leave
- It proposes optional, pre-planned unpaid leave lasting one to three months for certification programmes or bootcamps.
- Skill loan
- A Model Skill Loan of up to Rs 7.5 lakh at 7.9 percent interest is proposed.
- Apprenticeship participation
- About 32,000 of roughly 6 crore registered MSMEs had taken on apprentices under the National Apprenticeship Promotion Scheme, according to the report.
- Planned state pilots
- Pilots are proposed in Andhra Pradesh, Odisha, Uttar Pradesh, Bihar and Assam.