How does the literacy rate impact the unemployment rate? What can be done to tackle it?

It will really make no difference till more jobs are created and if that does not happen it will only give rise to frustration among the educated leading them to accept jobs which are below their achived levels of education. The solution is to empower individuals to start small scale industries, either making high quality finished products or supplying parts/accessories to bigger industries. We need to, using our huge manpower resource, without interference from middlemen, with uncorrupted government backing, produce goods of a very high quality and supply to the whole world.