Last Updated:August 17, 2026, 15:16 IST

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.

The findings are based on more than one lakh candidates who took the Global Employability Test (AI-generated image used for representation)

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.

Key Questions Answered

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How will the gig economy impact traditional job structures by 2030?

By 2030, the gig economy is projected to create approximately 1.6 to 2.1 crore new jobs in India, with 70% of non-agricultural jobs originating from this sector. This growth will primarily be in areas like ride-hailing services, food and grocery delivery, and home services.

Which emerging sectors will drive job growth in the next five years?

Emerging sectors expected to drive job growth include e-commerce, tech startups, healthcare, and pharmaceuticals. The manufacturing sector is also anticipated to see significant job increases. Additionally, AI and machine learning are strong drivers of hiring in the corporate sector.

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Anushka Vats

Anushka Vats is a Sub-Editor at News18.com with a passion for storytelling and a curiosity that extends beyond the newsroom. She covers both national and international news. For more stories, you can …Read More

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