Gen Z drives 79% of new formal job accounts in India in FY26: Quess report

India’s Gen Z workforce is emerging as the biggest driver of formal employment, with employees aged 18 to 30 accounting for 79 per cent of new Universal Account Numbers generated during FY26, according to workforce solutions company Quess Corp’s latest Pulse FY2026 report.

The findings, based on EPFO and other employment data, point to a generational shift in India’s organised workforce, with young workers entering formal employment at a rapidly growing pace. The 21-25 age group alone accounted for more than 35 per cent of the new UANs, making it the single largest cohort entering formal employment during the year.

The report also said nearly 59 per cent of new EPFO subscribers in FY25 were aged 18-25, underlining the growing contribution of younger workers to the formal economy. It said this trend challenges the perception that younger workers are moving away from conventional employment in favour of gig or informal work. Instead, the EPFO data indicates that a large section of Gen Z is entering jobs covered by formal social security mechanisms.

Women also accounted for a significant share of new registrations. Nearly 28 per cent of new UANs generated in FY26 belonged to women, while women received around 26 per cent of apprenticeship contracts, the report said.

It also highlighted the growing role of apprenticeships in bringing young people into the organised workforce. Nearly 64,000 apprenticeship contracts were facilitated under the National Apprenticeship Promotion Scheme, with the automotive sector accounting for more than half of these contracts.

Another finding in the report was the geographical spread of formal employment. Nearly 69 per cent of the workforce was deployed across Tier-II and Tier-III cities, indicating that smaller urban centres are increasingly emerging as employment hubs beyond the traditional metropolitan markets. The changing profile of the workforce was also reflected in educational attainment. Around 96 per cent of workers had completed at least Class 10, while 61 per cent had completed Class 12 or higher and about 30 per cent held graduate or postgraduate qualifications, the report added.

Overall, the report suggests that 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.