According to a report by Quess Corp, 79% of new Universal Account Numbers (UANs) generated in FY26 belonged to Gen Z employees aged between 18-30 years. The data from the Employees Provident Fund Organisation (EPFO) demonstrates a significant generational shift in India's workforce composition. Among India's young workers aged 21-25, they comprised more than 35% of the new UANs, making them the single largest cohort entering formal employment. As reported by Quess Corp, this represents a 20% year-on-year increase from FY25, highlighting the growing role of young workers in expanding India's formal economy. Recent workplace experiences further validate this trend, with Gen Z employees demonstrating strong work ethic and commitment to their roles, often working late hours to complete responsibilities despite management's lack of backup planning.
The report identified retail, e-commerce, logistics, services, and staffing sectors as major entry points for first-time workers. According to Quess Corp, nearly 69% of the workforce is deployed across tier II and III cities, which underscores the growing role of emerging economic centres in the organised employment landscape. The analysis, titled ''''Pulse FY2026: Shaping India''s Workforce Future'''', covered data from EPFO, Periodic Labour Force Survey (PLFS), and industry sources to examine workforce trends and macroeconomic indicators. This decentralisation trend represents the emergence of tier 2 and tier 3 cities as hubs of workforce deployment, driven by retail expansion, logistics growth, manufacturing diversification, and distributed business operations.
The workforce in FY26 reflects significant educational transformation, with 96% having completed at least Class 10, 61% completing Class 12 or above, and 30% holding graduate or postgraduate qualifications. As reported by Quess Corp, the organised workforce is becoming increasingly educated, with rising educational attainment, employability skills, and digital readiness shaping workforce demand across sectors. The report noted that given the large number of first-time entrants, companies are investing in apprenticeships, job-ready skills, and technology-enabled hiring to improve the transition from education to work. Employees are now more tech-savvy and digitally adaptive, with gender diversity prevalent among the more educated workers. Female participation is focused more on customer service, telesales, HR, and office-support roles, whereas operational/logistics-heavy jobs still hire predominantly male workers.
Women accounted for nearly 28% of new UANs generated during FY26, while women received 26% of apprenticeship contracts under the National Apprenticeship Promotion Scheme (NAPS). According to Quess Corp, close to 64,000 apprenticeship contracts were facilitated under NAPS, with the automotive sector accounting for over 51% of all apprenticeship contracts. The report emphasized that apprenticeships are emerging as effective pathways into formal employment, providing young people with industry-relevant skills, practical workplace experience, and confidence to build long-term careers. Women make up 25% of postgraduate workers and 23% of those with only a Class 10 education, indicating growing participation across educational levels.
Despite the positive trends in formal employment, significant challenges persist in youth employment. According to Quess Corp, approximately 40% of the 15-29 age group are unemployed graduates, highlighting the skills mismatch in the job market. More than 50% are employed in roles requiring skills below their level, and only 8.25% of degree holders have employment matching their skills. The report indicates that unemployment remains prevalent among the youth, and even those with employment face skill mismatches between their educational qualifications and actual job requirements. This gap underscores the need for continued investment in apprenticeships and skills development programs to bridge the gap between educational attainment and job market demands.
