The current trends in the corporate world at the advent of the AI revolution suggest that it has become highly volatile and unpredictable and is poised to evolve further. Established organisations as well as startups are leveraging data analytics services and AI and ML for automation. In such times, economics graduates, once highly in demand for their quantitative prowess, find it difficult to adapt to the changing patterns of employment in corporate jobs, which have become very competitive and require skills like data analytics, understanding of the ML algorithms, Power BI, SQL and Python.
Though the skills can be learnt easily, unfortunately they are not incorporated in the economics curricula at the university level. Economics departments are hesitant to incorporate these skill based courses over the traditional courses which constitute the core of the curricula. It is because of this that students find themselves in a situation where they have to learn these skills in an unsystematic manner from random online platforms. The internet is flooded with courses on data analytics and data science, power BI, and Python, which don’t serve the purpose as the majority of such content is pre-recorded and doesn’t allow interaction with the instructors.
This resistance shown at university departments to change their curricula and incorporate skill based courses has lowered the employability of economics graduates in the corporate world. In the age of AI revolution where companies are automating basic operations, the graduates would have to acquire advanced skills to stay industry relevant and employable.
Global skill mismatch between economics graduates and what industry wants
Corporates, especially in the area of consulting, marketing research, and finance, are seeking graduates with a proficiency in coding (R, Python, SQL and Power BI) for financial modelling, data visualization and skills to convert data into interactive dashboards. The traditional economics programs unevenly emphasize on the theoretical aspect of economics with minimal exposure to software and simulation, and nearly zero exposure to real time data handling techniques.
As highlighted by the Institute for Competitiveness, in India, only 8.25% of economics graduates are able to secure jobs which are aligned with their studies. Similar trends are reported in other parts of the world, where employers’ reveal that economics graduates lack hands-on experience with real time data handling and problem solving.
A report by the National Association of Colleges and Employers (NACE, 2023) from the United States highlights that only 42% of economics graduates were able to get jobs in their relevant fields within the first six months of their graduation. Similarly, the Institute for Fiscal Studies (IFS), United Kingdom, reported that economics graduates earn 20% less than their computer science and engineering counterparts.
India’s case
India wants to leverage its demographic dividend to become a $5-trillion economy, but is struggling to bridge the academia and industry gap, finding it difficult to align the education system in a way that fulfills the market needs. The Economic Survey of India (2024-25) revealed that above 50% of graduates are underemployed and settle for a semi-skilled jobs, a huge mismatch between their qualifications and what the industry demands. These trends remain the same for undergraduate and post graduate students where nearly 50% settle for low-skill roles indicating a skill gap between the traditional economics education and what the industry seeks in the era of AI.
Further, a report published by the All India Council for Technical Education (AICTE) highlighted that around 90% of Indian universities teach outdated curricula and fail to integrate technology in education. They also show resistance in incorporating modern tools like machine learning, data analytics, visualization etc.
What are the skills employers are seeking in economic graduates?
To highlight what is missing, we can refer to the insights of the survey conducted by LinkedIn’s Talent Solution (2024) indicating the highly demanded skills by companies that employ economics graduates:-
1. Data analytics – Python, R, SQL, Tableau and Power BI
2. Financial modelling and risk management – market analysis, visualization and risk factor assessment.
3. Business decision making – Application of economics theories using real time data in software for better decision making
4. Application of AI and ML tools for economic forecasting.
5. Data visualization and storytelling for effective communication.
These can all lead to highly paid jobs, but universities are not incorporating these skill based courses in their curricula.
Bridging the gap: A road map to reform
The problem requires a collective effort from all the stakeholders such as policy makers and higher education institutions to bridge the gap in the current curricula and what the industry wants.
• Curriculum upgradation – the discipline of economics provides immense scope for coding, technology integration such as AI tools and technical simulations using the economic data.
• Selection of relevant internships – Many students in their internships end up doing data entry work and do not learn any skill as employers find them incompatible with other work which requires strong technical foundations.
• Vocational training & certifications – Encouraging students to pursue certifications in data science, financial analytics, and AI applications to enhance their employability.
• Training of faculty members - All of these initiatives would only work if the existing faculty members are trained in skills like Machine Learning, Power BI, Tableau, SQL, Python and R for Statistical Analysis. They must also have access to professional AI-enabled tools for research and curriculum development.
India’s demographic advantage presents a golden opportunity—but only if its graduates are equipped with the right tools to thrive in a fast-changing corporate world.
AI’s role in transforming economics careers
Today an economist's role is multifaceted which requires a strong foundation of economic theory, but an even stronger base in quantitative techniques for data analytics, such as Power BI, Tableau and AI and ML algorithms to get insights from the data. AI has disrupted the job market and the key trends are:-
• Automation at entry-level Jobs – One of the characteristics of AI is to automate the routine work to save costs attached with it or in other words reduce the human need to perform the task.
• Hiring based on skills – Companies now hire graduates who can practically execute the tasks, so having a degree alone is not a sure ticket to a job anymore. A 2024 survey by McKinsey revealed that 35% of Indian employers now use AI-based hiring tools.
• Increased demand of AI-enabled research and policy evaluation – Individuals capable of using real time macroeconomic data and bringing out interesting insights with the application of AI tools are highly sought after in the corporate world.
• Surge in economic consultation and fintech work – recent trends have shown that AI is creating very niche employment opportunities for highly skilled individuals in the areas of finance, banking and decentralised finance.
Outdated economics curricula: A global issue
Reports from the international student initiative for pluralism in economics and rethinking economics have shown that many universities globally, have not modernized economics education, leading to a decline in the employability rates of economics graduates globally. It shows that:-
• 75% of universities lack meaningful integration of ecological economics and AI-driven economic analysis.
• Institutions such as SOAS University of London and University of Greenwich are challenging traditional neoclassical economics, promoting real-world applications over outdated models.
• Universities are failing to adapt to the changing dynamics in the job market and resistance to the curricula change is worsening the situation.
The future of economics education
Many leading universities are taking initiatives to bring reform in economics education in response to what the market demands:-
• Integrating AI and data science in coursework – Universities such as MIT, Stanford, and IIT Bombay are incorporating AI-driven economic modelling into coursework.
• Partnering with industry – real world application, capstones with the companies, and sponsored research are gaining popularity and can bridge the industry and academia gap.
• Interdisciplinary nature of the discipline – Economics provides immense choice to students and researchers to find a niche sector and integrate AI and data analytics skills to land a highly paid job as a specialist.
A critical crossroad and potential solution
Indian universities are failing to integrate technology into economics education, leaving graduates unprepared for today’s job market. Outdated curricula persist, neglecting AI, simulations, and data analytics—tools essential for modern economics professionals. This resistance stems from a deep-rooted faculty skill gap, where professors either lack exposure to technological advancements or refuse to embrace them. Without faculty-driven innovation, institutions remain locked in obsolete teaching models that no longer serve students. The future of economics education demands dynamic learning ecosystems, where professors continuously upskill and integrate real-world applications into their teaching. Without decisive action, India’s economics graduates risk becoming irrelevant in an AI-driven economy.
Universities must prioritize faculty development programs in AI, machine learning, and data analytics to stay globally competitive. Without well-equipped educators, students remain disconnected from industry demands and emerging technologies. Institutions should actively partner with top global universities to offer certification programs, ensuring faculty receive hands-on training in cutting-edge methodologies. These partnerships would accelerate modern pedagogy and enhance research capabilities in India. Investing in continuous faculty upskilling will not only modernize pedagogy but also bridge India’s employability gap, particularly in economics education. Failure to act now will leave universities producing graduates who are unprepared for the AI-driven work culture.
Universities and policymakers must align economics education with real-world industry expectations. The future of economics education lies in bold reforms, industry collaboration, and seamless integration of practical and technological skills. Without these innovations, thousands of graduates will struggle to transition into high-paying corporate roles. For India to remain globally competitive, universities must break free from outdated models and embrace cutting-edge tools. AI-powered, simulation-driven, and analytics-focused education is no longer an option—it’s a necessity.
(The author is Assistant Professor, School of Economics and Public Policy, RV University, Bangalore)