73 pc UG students expect Rs 5 LPA, only 40 pc achieve it: Report
Mumbai: A sharp mismatch between expectations and reality has emerged among undergraduate students, with 73 per cent aiming for salaries above Rs 5 lakh per annum (LPA), while only 40 per cent are able to achieve that level, a report said on Monday.
The Unstop Talent Report 2026 has revealed that the traditional degree premium is eroding as 30 per cent of MBA graduates are earning below Rs 10 LPA, while 39 per cent of engineering graduates earn below Rs 7 LPA, indicating a compression in salary differences across streams.
With rising competition, candidates are also becoming more pragmatic; 82 per cent of B-school students prioritise in-hand salary over perks, reflecting a shift towards immediate financial stability.
The report is based on insights gathered through a comprehensive survey conducted between January and February 2026, covering over 37,000 students and over 500 HR leaders across industries.
Further, the report found that despite high salary expectations, there is also a growing sense of pragmatism among students.
Over 90 per cent of students are open to accepting a lower CTC if it offers better learning opportunities and long-term career growth.
Additionally, 82 per cent of B-school students prioritise in-hand salary over perks, reflecting a clear shift towards immediate financial stability, said the report.
As hiring becomes more selective, AI and skills are emerging as the new gatekeepers of opportunity, said the report, adding that 80-86 per cent of students are already using GenAI tools for job applications and interview preparation, signalling widespread behavioural change in how candidates approach the job hunt.
At the same time, 95-98 per cent of students believe hiring has already become skills-based, with employers reinforcing this shift, 64 per cent of HR leaders define premium talent through modern skills such as AI/ML, Data, Cloud, and Cybersecurity, rather than traditional pedigree.
Key future skills in demand include problem-solving (49 per cent), AI/ML (39 per cent), and emotional intelligence (30 per cent), it stated.
"India's talent market is not facing a hiring slowdown; it is undergoing a structural shift. While opportunities exist, access to them is becoming more selective, driven by skills, adaptability, and increasingly, AI readiness. The gap we are seeing today is not just about jobs, but about preparedness. Candidates who are able to combine strong fundamentals with real-world skills and AI fluency will be the ones who stand out in this evolving landscape," Unstop founder and CEO Ankit Aggarwal said.
The Unstop Talent Report 2026 has revealed that the traditional degree premium is eroding as 30 per cent of MBA graduates are earning below Rs 10 LPA, while 39 per cent of engineering graduates earn below Rs 7 LPA, indicating a compression in salary differences across streams.
With rising competition, candidates are also becoming more pragmatic; 82 per cent of B-school students prioritise in-hand salary over perks, reflecting a shift towards immediate financial stability.
The report is based on insights gathered through a comprehensive survey conducted between January and February 2026, covering over 37,000 students and over 500 HR leaders across industries.
Further, the report found that despite high salary expectations, there is also a growing sense of pragmatism among students.
Over 90 per cent of students are open to accepting a lower CTC if it offers better learning opportunities and long-term career growth.
Additionally, 82 per cent of B-school students prioritise in-hand salary over perks, reflecting a clear shift towards immediate financial stability, said the report.
As hiring becomes more selective, AI and skills are emerging as the new gatekeepers of opportunity, said the report, adding that 80-86 per cent of students are already using GenAI tools for job applications and interview preparation, signalling widespread behavioural change in how candidates approach the job hunt.
At the same time, 95-98 per cent of students believe hiring has already become skills-based, with employers reinforcing this shift, 64 per cent of HR leaders define premium talent through modern skills such as AI/ML, Data, Cloud, and Cybersecurity, rather than traditional pedigree.
Key future skills in demand include problem-solving (49 per cent), AI/ML (39 per cent), and emotional intelligence (30 per cent), it stated.
"India's talent market is not facing a hiring slowdown; it is undergoing a structural shift. While opportunities exist, access to them is becoming more selective, driven by skills, adaptability, and increasingly, AI readiness. The gap we are seeing today is not just about jobs, but about preparedness. Candidates who are able to combine strong fundamentals with real-world skills and AI fluency will be the ones who stand out in this evolving landscape," Unstop founder and CEO Ankit Aggarwal said.
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