77% of employees in India are actively looking for new roles, but employers say skills mismatch is limiting hiring, according to the latest Indeed Hiring Tracker.
Nearly half of employers reported no change in hiring volumes in the third quarter of FY25–26 compared with the previous quarter, while around one-third said hiring increased.
At the same time, 77% of employees said they were actively or somewhat actively seeking a new role, but only about one-third felt confident they could secure one, highlighting uncertainty in the job market.
Data from Indeed Hiring Lab, the company’s labour market research arm, showed job postings increased 3.3% in January 2026 and remain 84% higher than pre-pandemic levels. Over the past three months, postings rose across 90% of occupations, indicating broad demand even as companies expand cautiously.
Hiring centred on core business roles
The tracker showed that organisations are largely focusing on filling specific roles rather than expanding overall headcount. About 40% of employers said contract or freelance roles form part of their workforce strategy, while 28% plan to expand hiring in Tier-2 and Tier-3 cities, reflecting a push for flexibility and regional diversification
Demand remains concentrated in business-critical functions. Sales and business development roles led hiring demand at 42%, followed by engineering (35%), manufacturing (32%), and supply chain (30%), pointing to companies prioritising roles tied directly to revenue and operations.
AI skills increasingly reflected in job postings
Hiring Lab data also showed a growing emphasis on artificial intelligence skills. In January, 14% of job postings referenced AI, up from 12.8% three months earlier.
Demand was strongest in data and analytics (40%) and software development (29%), but AI-related requirements are increasingly appearing in fields such as industrial engineering (22%), scientific research (20%), insurance (20%), and operations-related roles.
According to Callam Pickering, Senior Economist, APAC at Indeed, job posting activity in India “remains well above pre-pandemic levels” and continues to broaden across occupations. He added that the rise in AI-related postings shows how these capabilities are being integrated across industries, with 55% of occupational categories now referencing AI, up from 36% a year earlier.
Employers cite skills mismatch as a key constraint
Despite steady demand, employers said hiring challenges persist. The tracker found that 58% of employers cited low applicant volume, while 50% identified skills mismatch as a key hiring constraint.
The gap is particularly visible in foundational capabilities. 44% of employers said they struggle to find candidates with strong problem-solving skills, while 38% reported difficulty hiring candidates with communication skills, suggesting issues around work readiness rather than overall talent availability.
In response, 53% of employers have adopted skills-based hiring approaches, including structured shortlisting, certification-based evaluations, and practical assessments, reflecting a shift from credential-based hiring to demonstrated capability.
Career growth and stability drive job searches
For job seekers, career growth and leadership opportunities ranked as the top priority for 69% of respondents, followed by upskilling and higher pay. However, job stability remained the most valued benefit, with 54% ranking it as the key factor in career decisions.
The survey also found more candidates exploring roles in mid-sized companies and non-metro cities, influenced by cost of living and quality-of-life considerations. Full-time roles remain the preferred format, and 60% of respondents expect monthly salaries between ₹40,000 and ₹80,000.
Sashi Kumar, Managing Director at Indeed India, said hiring volumes remain stable but hiring standards are becoming stricter. “Hiring volumes are stable, but evaluation standards are rising. In this environment, alignment between practical skills and business needs becomes the deciding factor,” he said.