Hiring sentiment to rebound in H1 2025 after a lull, IT jobs in focus

India’s white-collar job market is set for a strong hiring surge in the first half of 2025, with 96 per cent of employers planning to recruit, according to the latest Naukri Hiring Outlook survey. This marks an increase from 92 per cent in the same period last year, reflecting a growing confidence in the employment landscape.

 

The bi-annual survey, based on insights from over 1,200 employers, indicated that 58 per cent of companies will adopt a dual approach — both creating new positions and filling existing vacancies — up from 48 per cent in 2024. Additionally, the report revealed that 18 per cent of employers plan to focus solely on new job creation, while 20 per cent will prioritise replacement hiring. The proportion of employers expecting layoffs has declined to 2 per cent from 3 per cent last year, signalling a relatively stable job market.

 

IT sector to lead hiring activity in H1 2025

 

IT roles have emerged as most in-demand, with 37 per cent of employers prioritising tech hiring — significantly higher than the 24 per cent recorded in 2024. However, talent retention remains a major concern, as 42 per cent of companies foresee the highest attrition rates within IT roles.

 

Employers are particularly keen on hiring professionals with 3-8 years of experience, who will account for 58 per cent of the overall hiring activity, up from 53 per cent last year. This demand reflects a need for candidates who bring both fresh perspectives and hands-on expertise.

 

Budget constraints and skill shortages continue to haunt employers

Despite the strong hiring sentiment, employers face hurdles in talent acquisition. Budget constraints are the most significant challenge, cited by 27 per cent of respondents, while 25 per cent struggle with talent shortages. Another 22 per cent employers report difficulty in finding candidates with the required skills.

 

Meanwhile, the employee turnover is expected to increase, with only 17 per cent of employers anticipating attrition rates below 5 per cent, down from 23 per cent in 2024. The report noted that more employers (34 per cent) predicted attrition in the 5-10 per cent range, with professionals in the 3-5 year experience bracket most likely to switch jobs.

 

Positive hiring outlook for fresh graduates

 

On the salary front, the report said that employees can expect generous increments as more than half (54 per cent) of employers plan to offer double-digit salary hikes, while 39 per cent anticipate increases in the 5-10 per cent range.

 

Campus hiring is set to remain steady, with 34 per cent of employers confirming plans to recruit fresh graduates — up from 30 per cent last year — offering more stability for new entrants into the workforce.