Gen Z drives India's formal jobs boom, accounts for 79% of new UANs
The report also noted that nearly 59 per cent of new EPFO subscribers in FY25 were aged 18-25
India’s Gen Z workforce is emerging as the biggest driver of formal employment, with employees aged 18-30 accounting for 79 per cent of new Universal Account Numbers (UANs) generated during FY26, according to the latest Pulse FY2026 report by workforce solutions company Quess Corp.
The findings, based on EPFO and other employment data, point to a significant 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 noted that nearly 59 per cent of new EPFO subscribers in FY25 were aged 18-25, underlining the increasing contribution of younger workers to the formal economy.
The trend challenges the perception that younger workers are increasingly turning away from conventional employment in favour of gig or informal work. Instead, the EPFO numbers indicate that a large section of Gen Z is entering jobs covered by formal social-security mechanisms.
Women, too, accounted for a significant share of new registrations. Nearly 28 per cent of the new UANs generated in FY26 belonged to women, while women received around 26 per cent of apprenticeship contracts, according to the report.
The report 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 notable finding 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 becoming employment hubs beyond the traditional metropolitan markets.
The changing profile of the workforce is 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.
The findings suggest that India’s formal workforce is becoming younger, more educated and increasingly distributed beyond major cities, potentially reshaping how employers approach entry-level recruitment, apprenticeships and workforce development.
