India Skills Report 2026: These are India’s most employable states
If you are a young job seeker wondering whether your state can make a difference to your career prospects, the India Skills Report 2026 has some interesting answers. Uttar Pradesh tops the list of states with the highest youth employability, followed by Maharashtra and Karnataka. Kerala and Delhi also make it into the top five. The report puts India’s overall employability at 56.35 per cent, up from 54.81 per cent in 2025. It is based on insights from more than 100,000 candidates who took the Global Employability Test, along with responses from seven industry segments. The findings also point to a changing jobs market, where AI, digital skills, gig work and remote employment are becoming increasingly important.
UTTAR PRADESH TOPS YOUTH EMPLOYABILITY
According to the India Skills Report 2026, Uttar Pradesh records the highest youth employability rate among the states at 78.64 per cent.
Maharashtra follows at 75.42 per cent, while Karnataka records 73.85 per cent. Kerala ranks fourth with 72.16 per cent, followed by Delhi at 71.25 per cent.
The ranking measures the job readiness of young candidates rather than simply counting the number of jobs available in a state. So, being at the top does not necessarily mean that a state has the most jobs. It indicates stronger employability among the young workforce assessed by the report.
INDIA’S EMPLOYABILITY RATE RISES
At the national level, India’s employability has continued to improve.
The report puts the figure at 56.35 per cent in 2026, compared with 54.81 per cent in 2025 and 46.2% in 2022. The report links the improvement to greater digital adoption, AI-related skills and changing patterns of employment.
The 22-25 age group records the highest employability at 75.7 per cent, followed by candidates aged 26-29 at 71.79 per cent and those aged 18-21 at 71.38 per cent.
COMPUTER SCIENCE AND IT GRADUATES LEAD
Technology-focused degrees continue to perform strongly.
Computer Science graduates record 80 per cent employability, followed by Information Technology at 78 per cent, Instrumentation Engineering at 77 per cent, Electronics and Communication Engineering at 75 per cent and Mechanical Engineering at 63 per cent.
The report also points to strong demand for skills in AI, data analytics, cloud computing and cybersecurity, as technology becomes more deeply integrated into workplaces.
AI IS CHANGING THE JOBS MARKET
The India Skills Report 2026 also looks beyond traditional employment.
Its 2026 theme focuses on gig work, freelancing, AI-supported roles, remote work and entrepreneurship. India’s gig and freelance workforce is projected to reach 23.5 million by 2030, while project-based hiring is reported to have risen 38 per cent year on year.
The report estimates that India currently accounts for 16 per cent of the global AI talent pool, with the number of AI specialists projected to reach 1.25 million by 2027.
For students and young professionals, the message is fairly clear: a degree still matters, but employability increasingly depends on what you can do with it. Technical ability, digital skills, AI familiarity and the ability to adapt to new forms of work are becoming an increasingly important part of being job-ready.
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