India’s Formal Job Market Booms in May Despite Global Hiring Slump, Shows Indeed Report
New Delhi | June 13, 2025 — Even as the global hiring landscape faces headwinds, India's formal job market is roaring back to life, registering a robust 8.9% increase in job postings in May, according to data released by global employment platform Indeed.
This marks a strong resurgence after a brief lull and reflects the growing resilience of India’s labour economy. Job postings in India are now nearly 80% above pre-pandemic levels, making the country one of the few bright spots among major global economies.
Key Highlights at a Glance:
- Job postings in India grew 8.9% in May 2025.
- India’s hiring levels are 80% higher than pre-COVID averages.
- Software development remains the top sector, accounting for nearly 20% of listings.
- Generative AI roles double from last year, now at 1.5% of total job listings.
- Top growth sectors: Childcare, personal care, education, and manufacturing.
- Regional hubs: Karnataka and Telangana lead in AI hiring; Maharashtra tops overall.
A Formal Economy on the Rise
According to Callam Pickering, APAC Senior Economist at Indeed, India's growth trajectory is being fuelled by a rapid transition to a formalised economy.
“As the nation transitions, job creation across the formal sector continues to outpace overall employment growth. This consistent upward trend puts India ahead of many other global economies,” Pickering noted.
This shift is significant in a country where a large portion of the workforce has traditionally operated in the unorganised sector. The formalisation drive — powered by government reforms, digitisation, and skill development — is unlocking structured employment opportunities across multiple domains.
Sectors Leading the Surge
Job postings have seen upward momentum in nearly 80% of occupations over the past three months. Some of the fastest-growing sectors include:
| Sector | Growth in Postings (May 2025) |
|---|---|
| Childcare | +27% |
| Personal Care & Home Health | +25% |
| Education | +24% |
| Production & Manufacturing | +22% |
These sectors reflect both social demand (health and education) and industrial rebound, making it a broad-based recovery.
Tech Remains King — But It’s Evolving
Software development continues to dominate the formal job space, representing 1 in every 5 job postings on the platform. While IT hiring globally has slowed, India remains an outlier, thanks to its cost-effective talent base and growing domestic demand.
But the tech job narrative is evolving — and generative AI is leading that change.
Rise of Generative AI Talent
In a notable trend, job postings referencing generative AI more than doubled compared to the same period last year. As of May 2025, 1.5% of all job ads in India mentioned generative AI, a significant share for an emerging tech area.
Roles are no longer limited to tech and analytics. Employers across:
- Scientific research
- Marketing & communications
- Business management
are actively seeking professionals who understand and can implement generative AI tools like ChatGPT, Midjourney, and custom LLM solutions.
Regional Breakdown: New Hiring Powerhouses
- Karnataka and Telangana: Key states driving India’s AI revolution, home to Bangalore and Hyderabad — major IT and startup hubs.
- Maharashtra: Continues to lead in overall job volumes, boosted by Mumbai’s diverse employment base across finance, media, and corporate services.
Why India Stands Out Globally
Unlike major Western economies currently experiencing tech sector layoffs, tight labour markets, or stagnant hiring due to recessionary fears, India’s job landscape remains buoyant due to:
- Growing domestic demand in education, health, and services
- Continued foreign investment in Indian tech and manufacturing
- Rapid upskilling in areas like AI, cloud, and digital marketing
- Push for formalisation under policies like Digital India, Skill India, and GST-led compliance
Outlook: What's Ahead for Indian Job Seekers?
- Positive hiring momentum is expected to continue into the second half of 2025.
- Fresh graduates and mid-career professionals are advised to upskill in AI, cloud computing, and digital communication.
- Demand for healthcare workers, teachers, and skilled factory workers will remain strong.
Expert Takeaway
“India’s job growth is structurally sound, not just a short-term bounce,” says a senior labour economist with the National Skills Development Corporation (NSDC). “The fact that nearly 80% of job roles saw growth indicates deep sectoral expansion, not just hiring booms in isolated tech pockets.”
India's formal job market is not only growing — it’s transforming. With tech-led innovation on one hand and demand for caregiving and education on the other, India is shaping up to be one of the most diverse and resilient labour markets globally in 2025