Skills required for engineering graduates vary from one country to another, such as vital aptitude, essential skills, soft skills, and employability skills. These skills are necessary for continuous learning, as they are prerequisites for engineering graduates throughout their careers. However, educational institutions do not pay due attention to enhancing these skills of their students. Hence, they produce graduates who lack confidence, are unable to work in a team, and have poor writing and speaking skills. The number of engineering colleges has increased rapidly of late, and thus, the number of engineers graduating is increasing every year at an alarming rate. However, providing jobs for newly graduated engineers remains a huge challenge. Some of these graduates may get placed in a job through campus interviews, whereas some may not. This study aims to identify the primary reason for the challenges facing graduates in acquiring a job. Though a number of graduates are competing for a single job opportunity, the employer always tries to recruit the right candidate. But many times, there is a mismatch between the expectations of the employer and the competencies of the employee they recruit, as the employee lacks the essential skills. In addition, there is a clear deficiency in soft skills among the new workforce entering the labor market. Students need to acquire soft skills to have a bright career. In any field, employability skills depend on the industry’s employability standards. The primary skills that engineering students require are communication, problem-solving, leadership, teamwork, professionalism, and continuous learning. This study highlights the importance of employability in enhancing the career prospects of engineering graduates and examines the strategies and initiatives employed by graduates, educational institutions, and policymakers to enhance the employability skills of graduates. Furthermore, it emphasizes the need for continuous learning, upskilling, and staying abreast of emerging trends in order for graduates to remain employable in an evolving job market. Understanding and developing employability skills is crucial both for individuals seeking successful employment outcomes and for organizations aiming to build a skillful and versatile workforce.