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Uttar Pradesh has emerged as India's most employable state, followed by Maharashtra and Karnataka, according to the India Skills Report 2026.

 

The report said India's overall employability rate increased from 54.81% in 2025 to 56.35% in 2026, indicating a gradual improvement in the job readiness of the country's workforce.

 

The top 10 most employable states, according to the report, are:

 

1. Uttar Pradesh
2. Maharashtra
3. Karnataka
4. Kerala
5. Punjab
6. Madhya Pradesh
7. West Bengal
8. Rajasthan
9. Arunachal Pradesh
10. Jammu and Kashmir

 

The report, prepared by ETS in partnership with the Confederation of Indian Industry (CII), the All India Council for Technical Education (AICTE) and other organisations, draws on data from more than one lakh candidates who took the Global Employability Test (GET), along with responses from over 1,000 organisations across seven industries.

 

The 2026 report examines how India's youth, educators and employers are adapting to changing models of work driven by technology, flexibility and innovation.

 

It also highlighted the growing role of smaller cities in India's workforce. Tier-2 and Tier-3 cities are emerging as important contributors to the country's talent pool, reflecting the expanding geographical spread of employment opportunities.

 

According to the report, India's technology-driven workforce is also expanding rapidly. The country now accounts for around 16% of global AI talent, with more than six lakh AI professionals.

 

The technology sector, along with banking, financial services and insurance (BFSI), manufacturing, renewable energy and healthcare, continues to be among the major hiring engines, the report said.

 

The report also projected that India's gig workforce could reach 23.5 million by 2030, pointing to the growing importance of flexible and non-traditional forms of employment.

 

The findings indicate that employability is increasingly being shaped not only by traditional educational qualifications but also by technological skills, adaptability and the ability to respond to evolving workplace requirements.