Employability on the Rise
The India Skills Report 2026, a collaborative effort by ETS, CII, AICTE, and AIU, showcases a significant uplift in the nation's employability rate. The report
highlights that employability has soared to an unprecedented 56.35%. This figure signifies a notable improvement compared to the 46.2% recorded in 2022. The report meticulously analyzed data from over 100,000 candidates and more than 1,000 companies across India, providing a comprehensive view of the evolving employment landscape. This rise underscores the dynamic changes underway in the Indian labor market, driven by factors like technological advancements, evolving skill sets, and changing workforce demographics. The data indicates a robust trend toward skill development and adaptation within the Indian workforce, which continues to drive economic growth and enhance competitiveness on a global scale. The report emphasizes the critical role of continuous learning and skill enhancement in keeping pace with the rapidly evolving demands of various industries.
Women Take the Lead
A remarkable shift is observed in the gender dynamics within the Indian labor market, as revealed by the India Skills Report. For the first time, female employability has exceeded that of men. The report indicates a female employability rate of 54%, surpassing the 51.5% recorded for men. This achievement highlights the success of efforts to promote gender balance and inclusivity. Hybrid work models and the increasing demand for digital skills have greatly enhanced job prospects for women. These factors have played a key role in empowering women to participate in the workforce, leading to a more equitable and diverse employment landscape. The report clearly indicates that the Indian labor market is moving towards gender parity, reflecting a broader social transformation and the recognition of women's vital contributions to the economy. This positive change sets a precedent for further advancements in gender equality across various sectors.
AI's Impact on Youth
Artificial Intelligence is significantly influencing the skills landscape, particularly among the younger generation, as the India Skills Report highlights. The report reveals that 71% of Gen Z freelancers are now trained in AI, showcasing the swift adoption of AI skills among the youth. This trend is further supported by the projection of a 40% growth in job opportunities in the coming years of 2026-27, demonstrating the increasing importance of AI-related expertise in the job market. With India holding 16% of the global AI talent pool, the nation is poised for further advancements in this field. The report further indicates that training in technology, digital skills, and AI has empowered the youth. It is projected that by 2027, the number of AI professionals will reach 1.25 million, highlighting the exponential growth potential in this domain. This surge in AI adoption indicates the rapid digitalization of the Indian workforce, which requires continuous skill enhancement and adaptation to stay ahead of industry demands.
Emerging Skill Hubs
The growth of skill development is not limited to metropolitan areas, as reported by the India Skills Report. Tier-2 and Tier-3 cities are quickly becoming prominent hubs for skill development and employment. The report highlights the emergence of Lucknow, Kochi, and Chandigarh as new skill hubs, showcasing the geographic diversification of talent and opportunity across the nation. This shift is also contributing to a reduction in the skills gap between rural and urban areas. The rise of these new skill hubs reflects the increasing access to quality education and training programs in smaller cities, along with the growing demand for skilled workers in various sectors. The report underlines the trend of project-based hiring, with an increase of 38% last year, highlighting the need for specialized skills and agile work arrangements. The top states for employability continue to be Uttar Pradesh, Maharashtra, and Karnataka, indicating robust labor markets in these regions. The leading sectors for hiring include technology, BFSI, manufacturing, renewable energy, and healthcare.
Gig Economy Expansion
The gig and freelance workforce in India is poised for significant expansion, according to the India Skills Report. The report projects that this segment will reach 23.5 million individuals by 2030, which showcases the growing popularity of flexible work arrangements. The rise of this workforce underscores a transformation in how individuals approach their careers and how businesses are structured. The increasing adoption of digital tools and online platforms has also contributed to the growth of the gig economy. The demand for various skills is also on the rise, with AI, data analytics, cloud computing, and cybersecurity emerging as top skills in demand. Over 90% of employees in India use generative AI tools, demonstrating the rapid integration of digital technologies in the workplace and driving the need for continuous skill development and adaptation.
