A recent report by workforce solutions company Quess Corp indicates a significant shift in India's employment landscape, with Generation Z emerging as the dominant force in formal job creation. The 'Pulse FY2026' report reveals that employees aged 18 to 30 were responsible for 79 percent of all new Universal Account Numbers (UANs) generated during the fiscal year 2026.
Younger Workforce Embraces Formal Employment
The findings, derived from EPFO and other employment data, underscore a generational move towards structured work environments. Notably, the 21-25 age group alone contributed over 35 percent of these new UANs, solidifying its position as the largest cohort entering formal employment in the past year. This trend challenges the common perception that younger generations are shying away from traditional employment in favor of the gig economy, suggesting instead a strong inclination towards jobs offering formal social security mechanisms.
Women and Apprenticeships Boost Formal Sector Entry
- Women's Contribution: Women accounted for nearly 28 percent of new UAN registrations in FY26, demonstrating their increasing participation in the formal workforce. They also secured approximately 26 percent of apprenticeship contracts.
- Apprenticeship Growth: Apprenticeships are playing a crucial role in integrating young individuals into the organised sector. The National Apprenticeship Promotion Scheme facilitated close to 64,000 contracts, with the automotive industry leading, accounting for more than half of these opportunities.
Formal Jobs Spread Beyond Metros
Another key insight from the Quess report is the expanding geographical footprint of formal employment. Approximately 69 percent of the workforce was deployed across Tier-II and Tier-III cities, indicating that smaller urban centers are rapidly transforming into significant employment hubs. This decentralization moves beyond the traditional reliance on major metropolitan markets for job opportunities.
The report also detailed the educational profile of this evolving workforce. About 96 percent of workers had completed at least Class 10, while 61 percent had finished Class 12 or higher. Furthermore, a substantial 30 percent held graduate or postgraduate qualifications, pointing to a more educated formal workforce overall.
“India’s formal workforce is becoming younger, more educated and increasingly spread beyond major cities, with Gen Z, women and apprenticeships playing a growing role in shaping entry-level recruitment and workforce development,” the Quess Corp report summarized.