Young workers drive India's formal employment as 79% of new UANs come from 18-30 age group

Mumbai, Young workers are driving India's formal employment, with 79 per cent of new UANs generated during 2025-26 belonging to individuals aged 18-30 years, signalling a generational shift in the workforce, a report said on Wednesday.

Of the over 57,000 new Universal Account Numbers (UANs) generated during 2025-26, 79 per cent belonged to individuals aged 18-30 years, staffing and workforce solutions provider Quess Corp's report 'Pulse FY2026' revealed.

The 21-25 age group accounted for over 35 per cent of all new UANs, making it the single largest cohort entering formal employment, the report added.


The report, which analyses Employees' Provident Fund Organisation (EPFO), Periodic Labour Force Survey (PLFS) and industry data alongside workforce trends, found that nearly 59 per cent of all new EPFO subscribers in FY25 were in the 18-25 age group, underscoring the growing role of young workers in expanding India's formal economy.

As first-time entrants become the largest source of formal employment, businesses are investing more in apprenticeships, technology-enabled hiring and job-ready skills to improve the transition from education to work, added the report.

"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. Apprenticeships are emerging as one of the most effective pathways into formal employment, giving young people the opportunity to gain industry-relevant skills, practical workplace experience and the confidence to build long-term careers," Quess Corp Executive Director and Group CEO Lohit Bhatia said.

For employers, he said, it offers a way to develop future-ready talent from day one.

The report is based on primary research and analysis of publicly available datasets, including EPFO, PLFS, industry reports and macroeconomic indicators.

Further the report revealed that nearly 64,000 apprenticeship contracts were facilitated under the National Apprenticeship Promotion Scheme (NAPS), with the automotive sector accounting for over 51 per cent of all apprenticeship contracts.

Meanwhile, women accounted for nearly 28 per cent of new UANs generated during FY26, while they received 26 per cent of apprenticeship contracts.

The report revealed that nearly 69 per cent of the workforce is deployed across tier II and III cities, which underscores the growing role of emerging economic centres in organised employment landscape.

Further, the workforce education profile in FY26 reflects the broader transformation underway within India's labour market, where rising educational attainment, employability skills, and digital readiness are increasingly shaping workforce demand across sectors.

The organised workforce is becoming increasingly educated, with 96 per cent having completed at least Class 10, 61per cent completing Class 12 or above, and 30 per cent holding graduate or postgraduate qualifications, the report added.