"In Mumbai, working on a construction site can pay roughly twice as much as many graduate-level jobs. A JCB operator can earn even more than that,"
Investor and author Saurabh Mukherjea made this remark during a recent podcast while discussing India's education system and employment trends. He argued that skilled jobs can often pay better than graduate-level office positions, arguing that the country's education system is failing to prepare young people for the modern economy.
According to Mukherjea, many graduates struggle to find well-paying jobs despite earning degrees, whereas skilled workers such as construction labourers and JCB operators can secure higher incomes due to strong demand for vocational skills.
Skilled jobs like JCB operators earn more
Citing Mumbai as an example, Mukherjea said a graduate who chooses to work as a construction worker or a JCB operator could earn significantly more than someone pursuing a typical office job.
“Suppose in Mumbai, where you and I are based, a graduate, instead of trying to get a job in an air-conditioned office, becomes a construction worker or a JCB operator,” he said.
He further argued that a degree does not necessarily guarantee higher earnings later in life. Even if they do get one, the income is usually not very attractive.
“In Mumbai, working on a construction site can pay roughly twice as much as many graduate-level jobs. A JCB operator can earn even more than that. And it is not as though the graduate will necessarily earn more later in life", he stated.
According to Mukherjea, in his book "Break Point: The Crisis of the Middle Class and the Future of Work", he has shown that the typical Indian middle-class person earns around ₹10–10.5 lakh a year. Most small business owners earn more than that.
Class 12 pass-outs among top earners
Citing findings from his book, Mukherjea said, “The best earners in India are often people who simply finish Class 12 and stop studying after that.”
“University is not adding value,” says Mukherjea. Further questioning the value added by higher education, he remarked, “You are actually better off in India not going to university, because the university system is simply not adding value. It is a rattafication system. It is three years spent memorising things.”
He added that the labour market itself appears to be sending a message about the value of degrees.
High graduate unemployment despite degrees
According to Mukherjea, the impact of this system is visible in employment data. “Forget AI for a moment. We can see it in the data itself. Around 40% of graduates are unemployed in India today,” he said.
He further claimed that graduate employability remains a major concern. “Out of every 100 graduates coming out of college, only three are getting a job in the year of their graduation.”
Comparing unemployment rates across educational groups, Mukherjea said, “The unemployment rate for graduates is around 30–40%. For illiterate people, it is around 3%.”
Rote learning at the core of India’s education problem
Speaking about themes from his book Break Point, Mukherjea claimed that the fundamental problem is not artificial intelligence but the design of India’s educational system.
“The deeper story that I have explained in Break Point is that our education system is based on rote learning. Memorize, right? Memorize and regurgitate in the exam. That doesn’t work,” he said.
The education system linked to weak innovation output
He concluded by linking the education debate to India’s technological ambitions, saying that, "I think the education system issue is a profound issue. It is something we will have to rectify if we want to succeed in the modern world. One manifestation of our failed education system is our inability to become a frontier country in AI, EVs, biotechnology, clean technology, or any form of advanced science. We are no longer at the table."
About Saurabh Mukherjea
Saurabh Mukherjea is the Founder and Chief Investment Officer of Marcellus Investment Managers. He holds a Bachelor of Science (BSc, Economics) and a Master of Science (MSc Economics) from the London School of Economics and Political Science (LSE). He has authored several books, including The Unusual Billionaires, Coffee Can Investing, Unfiltered: The CEO and the Coach, and his latest book, Break Point: The Crisis of the Middle Class and the Future of Work.
