Kerala’s Employability Rate Among Top 4 States

Kerala Ranks Fourth Nationally in Employability Rate

Why in the News ?

Kerala has secured the fourth position in India’s employability rankings, achieving a 72.16% employability rate as per the India Skills Report 2026, highlighting its strong job readiness, gender inclusivity, and rising prominence of Tier-2 cities like Kochi as talent hubs. This achievement also reflects Kerala’s commitment to clean energy transitions, sustainable development practices, and potential participation in the voluntary carbon market (VCM).

Kerala’s Performance in India Skills Report 2026:

• High Employability: Kerala recorded a 72.16% employability rate, standing fourth after Uttar Pradesh, Maharashtra, and Karnataka, reaffirming its consistent performance in the national job-readiness landscape and its potential for implementing carbon offset projects.
• Women-Friendly State: The report lists Kerala among the top 10 preferred States for women professionals, citing its gender-inclusive labour ecosystem and supportive employment environment, which could contribute to the state’s nationally determined contributions.
• Institutional Backing: The India Skills Report 2026 was published by ETS, in partnership with AICTE, CII, and the Association of Indian Universities, ensuring credibility in its evaluation and potential implications for carbon market cooperation.
• Consistent Job Readiness: Kerala’s sustained ranking reflects its continued focus on skill development, higher education, and industry-academia collaboration, including efforts towards clean energy transitions, reducing greenhouse gas emissions, and exploring emissions trading system opportunities.
• City-Level Strength: Kochi, a key urban centre, also emerged as a top performer, demonstrating Kerala’s growing role in the national employment map and its potential for implementing sustainable forest management practices and clean development mechanism projects.

National and Sectoral Trends in Employability

• Rising National Employability: India’s overall employability has risen to 56.35% from 54.81% last year, indicating an upward trend in graduate skill levels across the country and potential for increased participation in carbon offset mechanisms.
• Graduate Skills Improvement: Over half of India’s graduates scored above 60% in the Global Employability Test (GET), reflecting enhanced job readiness and alignment with market requirements, including emerging green jobs in the voluntary carbon market.
• Tier-2 Cities Emerging: Cities like Kochi (76.56%) and Lucknow are rising as strong talent hubs, helping to bridge the urban–rural skill divide and potentially fostering carbon market linkage between regions.
• Sectoral Focus: Growth in employability is evident in sectors like IT, BFSI (Banking, Financial Services, and Insurance), healthcare, and education, especially among women. There’s also an increasing focus on skills related to environmental impact assessment, clean energy transitions, and carbon offset projects.
• Women Leading Employment Growth: Nationally, women’s employability (54%) surpassed men’s (51.5%) for the first time, marking a gender shift in professional participation that could influence the implementation of emissions trading systems.