Young workers aged 18-25 significantly boosted India's formal economy, accounting for nearly 59% of all new EPFO subscribers in FY25, according to a report released on Wednesday. This trend continues into FY26, where the 21-25 age group formed the single largest cohort, representing over 35% of all new Universal Account Numbers (UANs) generated. As reported by Quess Corp's latest workforce report, this demographic shift marks a defining moment for both employers and the economy as young people enter formal workforce participation. Lohit Bhatia, Executive Director and Group CEO of Quess Corp, emphasized that "the scale at which young people are entering India's formal workforce marks a defining shift for both employers and the economy. As this new generation enters the world of work, the focus must move beyond hiring to building employability."
The National Apprenticeship Promotion Scheme (NAPS) facilitated nearly 64,000 apprenticeship contracts during FY25, with the automotive sector leading at over 51% of all contracts. According to the report, apprenticeships are emerging as effective pathways for young workers to gain industry-relevant skills, practical workplace experience, and confidence for long-term careers. Women accounted for 28% of new UANs generated during FY26, while 26% of apprenticeship contracts were awarded to women, highlighting increased participation across gender lines. Bhatia noted that "apprenticeships offer a way to develop future-ready talent from day one. As India's workforce continues to evolve, strengthening apprenticeships and industry-led skilling will be critical to unlocking the full potential of our demographic dividend."
The organised workforce is increasingly concentrated in emerging economic centres, with nearly 69% of the workforce deployed across tier 2 and tier 3 cities, as reported in the findings. The educational profile of the organised workforce shows significant improvement, with 96% having completed at least Class 10, 61% completing Class 12 or above, and 30% holding graduate or post-graduate qualifications. This educational advancement reflects the growing sophistication of India's formal employment sector. The trend is equally visible across the organised workforce, with 79% of more than 57,000 new UANs generated during FY26 belonging to individuals aged 18-30.
