If disguised unemployment characterises rural India, educated unemployment is a peculiar problem of urban India. This is the situation wherein a number of youth with matriculation, graduation and post graduation degrees are not able to find suitable jobs. The education system is such that even after about 18 years of education, a person can well be termed as unskilled. What this does is that a large number of unskilled educated youth get churned out of educational institutions year after year, but only a fraction of them are able to find suitable jobs. Among the remaining, some remain unemployed while others get employed in activities that seem inadequate as per their potential. This in turn leads to the wastage of the huge amounts of resources that had been spent on educating them.