India’s Talent Crunch & Changing Hiring Landscape: 2025 Recruitment Realities

Recruiters in India are grappling with a persistent and growing talent shortage even as demand for hiring remains strong, especially in sectors like IT, energy, and utilities. A recent ManpowerGroup survey found that about 80% of employers are struggling to find skilled talent, notably higher than the global average of ~74%, highlighting that the lack of suitably qualified candidates has become a structural constraint across regions. At the same time, while many companies are optimistic—expecting workforce growth over the next year—hiring patterns are shifting. There is increasing emphasis on mid-level hires over senior leadership (for faster impact), more gig, contract, and project-based roles rather than only permanent roles, and growing reliance on internal upskilling/reskilling to fill skill gaps rather than only external hiring. Technology is also playing a big role: HR teams are increasingly using AI and automation tools in recruitment, including AI-assisted resume screening, candidate matching, and early assessments. Companies report that AI features in HR software are boosting hiring outcomes and improving candidate experience. Meanwhile, traditional hiring criteria are evolving: degree requirements are being relaxed in favor of skills-based hiring; remote and hybrid work models continue to be important levers to attract candidates; and gig/freelance work arrangements are becoming more mainstream in many industries. The net result is a recruitment environment that’s more competitive and selective—candidates are applying to more roles than before, but responses are fewer, and employers are refining what they look for in resumes and experience. For organizations, this means revising their talent strategy: more focus on training, employer branding, flexible work, streamlined hiring processes, and making the candidate experience smoother to win in the war for talent.