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

Young workers are increasingly driving India's formal employment landscape, with 79 per cent of new Universal Account Numbers (UANs) generated during FY26 belonging to people aged 18-30 years, according to Quess Corp's Pulse FY2026 report.

21-25 age group leads new UANs

The report found that more than 57,000 new UANs were generated during FY26, with those aged 21-25 accounting for over 35 per cent, making it the largest age group entering formal employment.

Nearly 59 per cent of all new Employees' Provident Fund Organisation (EPFO) subscribers in FY25 were aged 18-25, further highlighting the growing contribution of young workers to India's formal economy.

Apprenticeships gain importance

With first-time entrants becoming a major source of formal employment, businesses are increasingly focusing on apprenticeships, technology-enabled hiring and job-ready skills to ease the transition from education to employment.

"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.

He added that apprenticeships also give employers an opportunity to build future-ready talent from the beginning of a worker's career.

Automotive sector drives apprenticeships

The report said nearly 64,000 apprenticeship contracts were facilitated under the National Apprenticeship Promotion Scheme (NAPS). The automotive sector accounted for more than 51 per cent of these contracts.

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

Tier II, III cities emerge as employment hubs

The report also pointed to the growing importance of smaller cities in India's organised workforce. Nearly 69 per cent of workers are deployed across tier II and tier III cities, highlighting the expanding role of emerging economic centres.

At the same time, the education profile of the organised workforce is changing. Around 96 per cent of workers have completed at least Class 10, while 61 per cent have completed Class 12 or higher. About 30 per cent hold graduate or postgraduate qualifications.

The report analysed EPFO and Periodic Labour Force Survey data, industry reports and other macroeconomic indicators alongside primary research to assess workforce trends in FY26.