India’s job Market stays strong, eyes freshers and tech for FY26
~Indeed’s latest ‘Hiring Tracker for Q4 FY25 reveals cautious optimism with demand for AI-ready roles growing and freshers stepping into the spotlight~
Bangalore: India’s job market is ending the financial year on a high note. Despite global headwinds, employers in India are doubling down on hiring, especially tech talent and freshers. According to Indeed’s latest ‘Hiring Tracker’, 82% of employers actively hired between January and March 2025, and increased overall hiring by 3% compared to October and December 2024.
“The job market is evolving, and employers are moving ahead with cautious optimism. While fresher hiring remains steady and tech roles continue to grow, especially in areas like software development, data analytics, and AI, there’s also a clear need to bridge the skills gap. As we enter FY26, companies are being more deliberate about who they hire and how they build future-ready teams,” said Sashi Kumar, Head of Sales, Indeed India
Freshers take the spotlight as FY26 planning kicks off
As companies locked in budgets and future-facing teams, fresh graduates emerged as the most in-demand talent, accounting for 53% of new hires last quarter. The top roles driving this demand were Software Developers (29%), Data Analysts and Scientists (26%), and Sales Executives (23%).
Employers are increasingly seeking freshers trained in Data Analytics, AI/ML, Cybersecurity, and Software Development — indicating that India’s hiring momentum is closely tied to the tech and AI boom. From AI developers to Cybersecurity specialists, employers are building teams that can future-proof their business, and freshers are leading the charge.
The skills gap challenge: Fresh talent, but not job-ready
Despite a strong interest in fresher hiring, many employers are grappling with a persistent skills gap. 38% of employers cited this as their top concern. While fresh graduates bring enthusiasm and adaptability, many lack the hands-on, practical experience that’s essential in today’s fast-evolving workplace.
Beyond technical skills, employers are also finding that new hires often fall short of workplace readiness. From communication to collaboration and time management, 27% of employers report that freshers need more support to adjust to professional environments. On top of that, 25% struggle with bridging the gap between candidate expectations and what companies can realistically offer, especially when it comes to compensation.
Yet, most companies still view freshers as long-term investments. What’s clear is that employers are becoming more discerning. They’re looking for candidates who not only have the right technical know-how in areas like AI, software development, and data analytics but also demonstrate flexibility, curiosity, and a willingness to learn on the job.
Freshers’ viewpoint: High hopes, tough competition
On the other side of the table, freshers are navigating their own set of challenges. While many are eager to upskill and prove themselves, competitive pay remains a sticking point. A large share of job seekers say they’re unwilling to settle for low compensation, and employers are taking notice. In fact, 72% of employers say fresher salaries have increased year-on-year. However, nearly 60% admit that the hike has been modest, capped at 5%.
Adding to the pressure, 39% of freshers say the sheer volume of competition makes it hard to get noticed.
“For every job today, there are six freshers vying for the role, and in tech, seven freshers compete for one role. That’s a sign of a young, ambitious workforce ready to work. Now, it’s time for the ecosystem to rise to the challenge. With the right push from new-age tech companies and innovation-led sectors like AI and cybersecurity, we have a real opportunity to turn this energy into impact,” added Mr Kumar.
Employers came close to meeting the salary expectations of the class of 2025 this quarter, offering an average starting salary of ₹3,50,000 LPA against freshers’ hopes of ₹3,80,000 LPA. Around 58% of employers offered packages in the ₹300,000 – 500,000 LPA range, aligning closely with the expectations of 67%. However, despite this near-match, 72% of freshers said they would not compromise on their salary demands, even if attractive learning or growth opportunities were available, underlining once again that pay remains their top priority.
This disconnect between employer expectations and job seeker needs is shaping how talent engages with opportunities. In fact, 62% of job seekers say they are more likely to apply to roles that clearly outline compensation, responsibilities, and work culture.. For employers looking to attract top talent, greater transparency and well-defined expectations may be key to building a stronger talent pipeline in FY26.
Outlook for FY26
The outlook for FY26 is cautiously optimistic. Over 34% of employers surveyed for Indeed Hiring Tracker Q4 FY’25 said they plan to hire freshers in the coming April-June 2025 quarter. Demand remains strong for fresh graduates and tech talent, especially in areas like AI, data, and cybersecurity.
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