New Delhi. The year 2026 seems full of hopes for the youth of India. According to the India Skills Report 2026, the employability of the youth in the country i.e. the ability to be ready for a job has reached 56.35%, which was 54.81% last year. This means that now out of every 100 youth, there are 56 who are ready for direct employment.
This report has been prepared jointly by ETS, CII, AICTE and AIU. In this, data collected from more than 1 lakh candidates and more than 1000 companies across the country was analyzed. According to the report, training in technology, digital skills and Artificial Intelligence (AI) has made the youth more capable.
women ahead of men
This time the biggest achievement in the report was of women. For the first time in India, female employability (54%) has been recorded more than that of men (51.5%). Due to hybrid work and digital skilling, the chances of women getting jobs have increased. It is clear from this that India’s labor market is now moving in the direction of gender balance.
AI skills changed the game
According to the report, Artificial Intelligence is rapidly changing the definition of employment in India. More than 40% of the IT and gig workforce are now using AI tools. At the same time, more than 90% of employees are using generative AI tools like ChatGPT or Gemini. India has 16% of the world’s AI talent and this figure is expected to reach 12.5 lakh professionals by 2027.
Big flight from small cities
Now not only metros, but tier-2 and tier-3 cities are also moving forward in skill development. Cities like Lucknow, Kochi and Chandigarh are now becoming new skill hubs. The skill gap between rural and urban areas is decreasing rapidly.
Jane Ji is becoming an AI freelancer
The report also revealed that 71% of Gen Z freelancers have already received AI training. India is now rapidly moving towards a model where humans and machines work together – i.e. Human + AI hybrid model.
The coming time will be full of jobs
There has also been a big jump in the hiring intention i.e. the desire of companies to recruit. Hiring intention for 2026-27 has reached 40%, whereas last year it was 29%. Most jobs are expected to come in tech, BFSI, manufacturing, renewable energy and healthcare sectors. There is a possibility of creation of 2.5 lakh new jobs by 2030 in BFSI and Fintech alone.
India will become the talent hub of the world
According to the report, when there is a shortage of 85 million skilled workers in the world, India is in a position to provide 45 million extra skilled professionals. This means that India can become the world’s number-1 talent hub in the coming years.
Effect of government schemes
The report has praised schemes like NEP 2020, Skill India Digital and SOAR (Skilling for AI Readiness). These programs have played an important role in equipping the youth with digital and technical skills. However, the report believes that unless colleges, industry and government work together to create a skill ecosystem, real change will remain incomplete.
