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India Skills Report 2026 Released: India’s Employability Rises
to 56.35%
In November 2025, the Educational Testing Service (ETS), along
with its partners—the Confederation of Indian Industry (CII),
AICTE, AIU, and Taggd—released the 13th edition of the India
Skills Report (2026). The report highlights a steady rise in India’s
overall employability, which increased to 56.35% in 2026 from
54.81% in 2025. This improvement reflects India’s shift toward a
skill-first economy, driven by AI adoption, digital skilling, and
growing global workforce mobility.

Key Findings of the Report

1. Women Outperform Men in Employability
   For the first time in five years, women’s employability (54%)
   surpassed that of men (51.5%).
   The report attributes this growth to the rise of hybrid work
   models, increased digital skilling, and greater opportunities in
   Tier-2 and Tier-3 cities.
   Women’s participation has notably increased in BFSI, education,
   and healthcare sectors.
2. Expanding Gig Workforce
   India’s gig and freelance workforce is expected to reach 23.5
   million by 2030.
   Project-based hiring has increased by 38% compared to the
   previous year.
   Despite this rise, permanent jobs still make up 72% of total
   employment, but gig and third-party roles have grown to 16%.
3. India as a Global Talent Hub
   The report positions India as a leading global supplier of skilled
   professionals.
   With global labour shortages projected to reach 85 million by
   2030, India is expected to offer a surplustalent pool of 45 million
   skilled workers, strengthening its global relevance.
4. AI and Tech Skills in High Demand

• India now holds 16% of the world’s AI talent, expected to
  reach 1.25 million professionals by 2027.
• Over 90% of employees across sectors use Generative AI
  tools.
• 70% of IT firms and 50% of BFSI companies have adopted AIbased recruitment systems.
• Computer Science graduates show the highest
  employability at 80%, followed by IT engineers at 78%,
  showing strong demand for skillsin AI, automation, and data
  analytics.

1. Top Hiring Trends

• Hiring intent for FY 2026–27 stands at 40%, compared to
  29% last year.
• The most in-demand sectors are:
  o Technology
  o BFSI
  o Manufacturing
  o Renewable Energy
  o Healthcare

1. Emerging Skill Hubs
   Tier-2 and Tier-3 cities, including Lucknow, Kochi, and
   Chandigarh, have emerged asstrong employability hubs, helping
   reduce the urban–rural skill gap.
2. Top Employable States
   The states with the highest employability in 2026 are:
3. Uttar Pradesh
4. Maharashtra
5. Karnataka
6. Most Employable Age Group
   The 22–25 age group continuesto lead with an employability rate
   of 75.7%, dominating entry-level recruitment.
   About the India Skills Report
   This year’s theme is “The Future of Work: Gig Workforce,
   Freelancing, AI-Supplemented Workforce, Remote Work and
   Entrepreneurship.”
   The report surveyed over 1 lakh candidates through the Global
   Employability Test (GET) and gathered insights from seven key
   industries, giving a comprehensive view of India’s evolving
   workforce landscape.
   About Educational Testing Service (ETS)
7. CEO: Amit Sevak
8. Headquarters: Princeton, New Jersey, USA
9. Founded: 1947