India ends FY25 on a hiring high, firms bet big on freshers and AI talent

According to a new report, 82 per cent of employers actively hired between January and March 2025, marking a 3 per cent rise in overall hiring compared to the previous quarter

India’s job market continues to show resilience amid global uncertainty, with fresh graduates and tech professionals emerging as top hiring priorities in the last quarter of FY25. According to Indeed’s latest Hiring Tracker for Q4FY25, 82 per cent of employers actively hired between January and March 2025, marking a 3 per cent rise in overall hiring compared to the previous quarter.

 

As companies prepare for FY26, freshers are at the forefront of workforce expansion plans, which accounted for 53 per cent of new hires last quarter, the report highlighted. Roles in software development (29 per cent), data analytics and science (26 per cent), and sales (23 per cent) are leading the demand — a clear indication of the industry’s growing tilt towards technology and future-ready skill sets.

   

“The job market is evolving, and employers are moving ahead with cautious optimism,” said Sashi Kumar, Head of Sales at Indeed India. “As we enter FY26, companies are being more deliberate about who they hire and how they build future-ready teams.”

 

Job readiness concerns continue to plague employers 

However, this enthusiasm for hiring freshers is tempered by concerns about job readiness. According to the report, a significant 38 per cent of employers cited the skills gap as their biggest hiring challenge, noting that while fresh graduates bring enthusiasm and adaptability, many lack the practical experience needed for high-performance roles. Employers also flagged soft skills such as communication, collaboration, and time management as areas where freshers need support.

 

Despite these concerns, most companies see freshers as long-term investments. But with heightened selectivity, employers are prioritising technical expertise in fields like AI, machine learning, cybersecurity, and software development, coupled with a demonstrated willingness to learn.

 

Competition for fresher jobs continues to rise 

Fresh graduates, meanwhile, face intense competition and limited salary growth. According to the report, for every job opening in tech, there are seven freshers competing. Although 72 per cent of employers increased fresher salaries this year, nearly 60 per cent said the hike was capped at 5 per cent, falling short of candidate expectations. The average starting salary offered was ₹3.5 lakh per annum, slightly below the ₹3.8 lakh freshers hoped for.

 

Yet, freshers are holding firm on salary demands — 72 per cent said they wouldn’t compromise, even for roles with strong growth prospects. This mismatch underscores a growing need for transparency and clear communication, with 62 per cent of job seekers more likely to apply for roles that specify compensation, responsibilities, and work culture.

 

Looking ahead, employers remain cautiously optimistic about FY26. Over one-third of surveyed companies said they plan to hire freshers in the April-June quarter, especially in high-growth areas such as AI, data science, and cybersecurity.