Abstract In the contemporary world of work, employability has emerged as a critical concern for education systems across the globe. Rapid technological advancement, globalization, automation, and the growing influence of artificial intelligence have significantly transformed the nature of employment. In this changing scenario, academic qualifications alone are no longer sufficient to secure sustainable employment. Employers increasingly seek individuals equipped with 21st century skills such as critical thinking, creativity, communication, collaboration, digital literacy, adaptability, and lifelong learning abilities. In India, despite the expansion of higher education, a persistent gap exists between the skills acquired through formal education and those required by the labour market. This gap has resulted in educated unemployment and underemployment among youth. The present paper is a conceptual study that explores the meaning and dimensions of 21st century skills, examines their relationship with employability, and analyses the role of education—particularly higher education and teacher education—in fostering these skills. Drawing upon national and international literature, the study proposes a descriptive conceptual framework that explains how educational inputs and learning experiences contribute to employability outcomes. The paper also highlights existing research gaps and suggests directions for future research and policy interventions. The study concludes that a skill-oriented, learner-Centred, and technology-integrated education system is essential for preparing individuals to meet the evolving demands of the 21st century workforce.