India’s job market is seeing a shift as smaller cities increasingly contribute to the country’s growing workforce. The India Skills Report 2026 highlights how young job seekers are adapting to changing
demands driven by technology, flexibility and new work models.
India’s overall employability rate has also improved, rising from 54.81% in 2025 to 56.35% in 2026. The report further noted that the gig workforce could grow to 23.5 million by 2030, reflecting the changing nature of employment.
But which state has the most employable workforce? Uttar Pradesh has topped the state-wise employability rankings, followed by Maharashtra and Karnataka.
The India Skills Report 2026 was published by ETS in partnership with the Confederation of Indian Industry (CII), the All India Council for Technical Education (AICTE) and other organisations. The findings are based on more than one lakh candidates who took the Global Employability Test (GET), along with responses from over 1,000 organisations across seven industries.
Top 10 Most Employable States
The report ranked the following states among the top 10:
Uttar Pradesh
Maharashtra
Karnataka
Kerala
Punjab
Madhya
Pradesh
West Bengal
Rajasthan
Arunachal Pradesh
Jammu and Kashmir
The report also identified Tier-2 and Tier-3 cities as increasingly important sources of talent, with their contribution to India’s workforce continuing to grow.
AI And Other Key Hiring Sectors
India’s growing technology ecosystem is another major focus of the report. It said the country now accounts for 16% of global AI talent, with more than 6 lakh AI professionals.
Technology, Banking, Financial Services and Insurance (BFSI), manufacturing, renewable energy and healthcare continue to be among the major sectors driving recruitment.
The report’s findings suggest that India’s employment landscape is becoming increasingly spread beyond major metropolitan centres, while technology and flexible work models continue to shape opportunities for young professionals.
