India Skills Report 2026: India’s Employability Rises to 56.35%; Women Surpass Men for the First Time in 5 Years

In November 2025, Educational Testing Service (ETS), in partnership with the Confederation of Indian Industry (CII), All India Council for Technical Education (AICTE), Association of Indian Universities (AIU) and Taggd, released the 13th edition of India Skills Report(2026).  As per the report, India’s employability rose to 56.35% in 2026 from 54.81% in 2025, reflecting a growing shift toward a skill-first economy shaped by AI adoption, digital skills, and global workforce mobility.

• The report showed women employability now stands at 54%, surpassing men employability i.e. at 51.5% for the 1st time in 5 years, driven by hybrid work and digital skilling initiatives.
• The report also noted that women’s workforce participation has increased in fields like: Banking, Financial Services, and Insurance (BFSI), education and healthcare, with heightened activity in Tier-2 and Tier-3 cities.

About India Skills Report:

Coverage: The report surveyed more than 1 lakh candidates through the Global Employability Test (GET) and collected responses across 7 key industries.

Theme: The report’s central theme for this year is ‘The Future of Work: Gig Workforce, Freelancing, AI-Supplemented Workforce, Remote Work and Entrepreneurship’ which captures the evolving dynamics of India’s workforce and its readiness for the future.

Key Findings:

Global Talent Hub: The report positions India as a “preferred global source of skilled talent,” highlighting the country’s expanding role in the international labour market.

Increase in AI Talent: The report highlighted that India now holds 16% of global AI talent, which is expected to reach 1.25 million professionals by 2027.

• The report further revealed that more than 90% of employees across sectors use Generative AI tools, while 70% of Information Technology (IT) and 50% of BFSI organisations have adopted AI-based recruitment systems.

Gig Economy Growth: As per the report, India’s gig and freelance workforce is projected to reach 23.5 million by 2030, with project-based hiring increasing by 38% compared to last year.

• Although permanent jobs still account for 72% employment in India, but still,  gig and 3rd-party positions have increased to 16%.

Global Talent Hub: The report has projected that global labor shortages will reach 85 million by 2030, while India is expected to supply a surplus of 45 skilled professionals, positioning it as the main talent hub at international level.

Hiring Trend: The report also showed that hiring intent in India stands at 40% for Financial Year 2026-27(FY27) compared to 29% in the last year, driven by sustained demand in technology, BFSI, manufacturing, renewable energy, and healthcare.

Dominant Sectors: The report further revealed that Technology, BFSI, Manufacturing, Renewable Energy (RE), and Healthcare continue to be top  hiring sectors.

Rising Tech Employability: The report highlights that computer science graduates show 80% employability, while IT engineers follow closely at 78%, reflecting strong industry demand for skills in AI, data analytics, and automation-driven roles.

Top Employable Age Group: The 22–25 age group leads with 75.7% employability, continuing to dominate entry-level hiring.

Emerging Employability Hubs: The report noted that Tier-2 and Tier–3 cities like Lucknow (Uttar Pradesh, UP), Kochi (Kerala) and Union Territory (UT) Chandigarh, are emerging robust employability hubs in India, fixing the urban and rural skill gap.

Top 3 Employable State: As per the report, UP, Maharashtra and Karnataka, are the top 3 states with highest employability in 2026.

About Educational Testing Service (ETS):
Chief Executive Officer (CEO)- Amit Sevak
Headquarters- Princeton, New Jersey, the United States of America (USA)
Founded- 1947