Something is changing in India’s job market. And not everyone is ready for it.
Once the dream sectors—IT and banking—are now pressing pause on hiring. The reason? A fast-moving mix of AI disruption, attrition, and global slowdown.
Let’s break it down.
The IT Sector Slowdown
India’s booming IT sector, which once promised lakhs of jobs to freshers, is now stepping back. According to the Naukri Jobspeak report, IT/software services saw a 5% drop in hiring in May compared to last year.
Why?
Companies like Infosys, TCS, and Cognizant are turning to AI tools to handle the jobs freshers used to do. As a result, entry-level roles are drying up.
“This is not how it was a couple of years ago,” says Gaurav Parab from Nelsonhall. “With AI improving fast, tech companies don’t need that many people anymore.”
It’s not just India. Globally, the tech world is laying off hard—more than 63,000 jobs have been lost this year alone, according to Layoffs.fyi.
Banking and Finance: Not Safe Either
In the banking and financial services sector, the problem is different but just as serious. The industry saw a 9% fall in hiring, mainly because of high attrition and a lack of skilled workers.
“Skilled people don’t stay—they keep jumping jobs,” said Karan Gupta of India Ratings.
This makes the sector unstable and leaves jobseekers confused about where to go.
Also Read India’s Manufacturing PMI Rises to 58.4 in June, Highest in 14 Months
But Wait, Some Sectors Are Still Hiring
While IT and banking slow down, other sectors are seeing a small boost:
- Insurance saw a 6% rise in hiring.
- Real estate and oil & gas grew by 4-5%.
The big surprise? MSMEs (Micro, Small, and Medium Enterprises) are quietly adding jobs. As of July 1, 2025, they’ve created 28.2 crore jobs, according to the Udhyam portal. That’s up from 18.5 crore just last year.
Yet even here, things aren’t perfect. Many MSMEs that depend on exports are suffering. Some have lost up to 50% of their orders over two years, thanks to trade tensions and rising costs.
The Bigger Picture: A Steady Illusion?
The government claims the job market is “steady”, pointing to a strong Manufacturing PMI and rising employment in some areas.
But the reality on the ground feels different.
The urban wage growth was only 0.1% in April and 0.4% in May, meaning people are working more but earning less. That’s not real progress—it’s survival.
Innovation vs Reality
We say we want innovation, but at what cost?
AI promises speed and profits—but kills jobs. Skilled talent keeps moving. Real wages barely grow. And young Indians are left wondering where to go next.
Maybe the real question is this:
“If the future is smart, why are the people who built it being left behind?”
Also Read Cabinet Clears ₹1 Lakh Cr Employment Scheme to Create 3.5 Cr Jobs, Boost Manufacturing
