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India's Job Market Faces Recruitment Slump
24 Feb
Summary
- India's hiring sector experiences a significant slowdown in 2024-2025.
- AI and automation are reducing demand for certain recruiter roles.
- Manufacturing, healthcare, and BFSI sectors show stable recruiter demand.
Hiring across India has significantly declined, with the recruitment sector itself experiencing a contraction. The market saw only 8,366 new hires in 2024, a figure that dropped by 6.6% to 7,810 in 2025. This downturn is linked to a broader economic slowdown and companies optimizing costs, leading to resized talent acquisition teams.
Artificial intelligence and automation are increasingly influencing hiring, particularly in technology and high-volume recruitment. Skills-based screening and automated shortlisting tools reduce the need for execution-heavy recruiter roles. However, this impact is uneven; sectors such as manufacturing, healthcare, retail, and BFSI continue to see stable demand for recruiters.
Companies are shifting towards "strategic talent advisors" who can leverage AI insights and practice skills-based hiring. While AI automates repetitive tasks, human recruiters remain essential for nuanced relationship-building. Geopolitical turmoil has also lowered business confidence, contributing to pessimism in the job market.
