The hiring landscape in 2024 saw a delicate balance between caution and optimism.
After the tumultuous cycles of the past few years—defined by over-hiring, mass layoffs, and economic headwinds—this year saw the job market stabilize with a renewed focus on strategic hiring.
Naveen Tiwari, co-founder of recruitment firm Scrabble, says “cautiously optimistic” is an apt word to describe the overall mood of hiring in 2024. Despite the economic challenges, overall employment has improved this year, he said
According to the Insights Tracker – Annual Trends 2024 by employment and talent platform Foundit (formerly Monster – APAC & ME), overall hiring activity in India grew by 10.05% in 2024.
Lessons learned in 2024 are paving the way for a promising 2025, with the job market poised for expansion, and a cautious outlook giving way to confidence in an improved labor scenario.
Design: Nihar Apte
Hiring in levels
Hiring for freshers and entry-level roles increased in 2024, driven by strong demand for skills in artificial intelligence (AI), cloud computing, and data analytics, led by global competency centers (GCCs) and IT services firms.
Hiring for mid-level management roles remained steady, with selective additions aligned to business growth. Compared to 2023, hiring for top management roles, including CXO, slowed as companies prioritized cost optimization and internal promotions.
However, strategic roles such as chief AI officer and chief digital officer were in demand, reflecting their critical role in driving business innovation, points out Krishna Vij, business head, Teamlease Digital, a technology professional services platform.
Scrabble’s Tiwari says there is a growing demand for C-suite talent in areas such as risk management, digital transformation and sustainability.
According to Foundate, entry-level roles (0-3 years of experience) saw a 3% increase, while hiring for associates with 4-6 years of experience increased by 4% in 2023. Mid-senior positions (7-10 years) experienced a steady demand, while senior roles (11-15 years) saw a 3% decline. Meanwhile, hiring for roles requiring 16+ years of experience saw a modest 1% increase.
Design: Nihar Apte
Learning from 2024
Talent shortages in specific sectors, skill shortages, and stiff competition to hire top-tier candidates were some of the challenges in 2024. New and emerging businesses require expertise in specific areas, which makes talent acquisition very difficult.
“The lack of absolute talent in high-demand fields like data science and artificial intelligence was a major bottleneck,” says Tiwari.
He says that although the supply of talent exceeds the demand, finding high-quality candidates with the required skills within the talent pool is a challenge.
The skills gap has enforced the need for up-skilling initiatives and collaboration between industry and academia to ensure a continuous pipeline of job-ready talent in the future.
As automation and evolving businesses require reshaping job roles, continuous learning and adaptation have become critical to staying competitive in the job market.
Upskilling is essential not only for early-stage professionals but also for those at more advanced stages in their careers, where the risk of layoffs is still increasing.
“The 2024 off-wave was driven by global economic uncertainties, increased hiring during the post-pandemic boom, automation, and startup funding challenges,” Wij notes, adding that geopolitical tensions hindered more work across industries.
She explained that the most important jobs in IT and technology, ecommerce, startups, edtech, and manufacturing are as companies streamline operations to address declining demand and adapt to evolving business scenarios.
Industry data indicates layoffs between 5% and 7% in sectors such as IT and ecommerce due to economic uncertainty and the rise of automation.
“The technology sector remains vulnerable to potential layoffs in 2025, along with retail, manufacturing, and finance. These jobs could be triggered by a variety of factors, including economic uncertainty or recessionary pressures, pressure on organizations to implement cost-cutting measures,” says Tiwari.
He adds that rapid technological advances, particularly in AI, may make some roles obsolete; Hence it is advisable to maximize income streams and focus on diversification.
The message is loud and clear: Upskill or get left behind.
By enhancing their skill sets, professionals can better position themselves in the job market, seize new opportunities, and remain resilient in the face of uncertainty.
Design: Nihar Apte
A positive approach
Experts expect recruitment activity to pick up next year, on the back of improved funding.
“As we enter 2025, India’s job market looks set to widen its horizons, with employment projected to grow by 9%,” says Anupama Bhimrajka, Vice President – Marketing, Found.
Tiwari forecasts positive hiring trends for middle-management and senior-level roles in 2025. There will be a particularly high demand for people in blue-collar and junior roles, as many companies become profitable and look to expand to the next stage of growth.
Timledge’s Viz believes that recruitment for freshers will accelerate given the demand for skills in IT, AI and emerging technologies. In fact, 42% of companies are focusing on hiring junior engineers, indicating a strategic shift to nurture entry-level talent, she says.
The recovery in hiring will be driven by an increase in new hires.
Viz expects a 20-25% increase in new hires. Sectors such as BFSI, healthcare, and retail will be key drivers; New hires in these industries are expected to increase by 30-35%, he adds.
Hiring trends in 2025 will be shaped by the needs of companies operating in green energy, electric vehicle manufacturing, and AI-driven industries. Along with continued growth in IT, healthcare, and the GCC, these sectors will focus on innovation and sustainability, increasing hiring in the process.
Experts also foresee a large-scale movement of professionals from Tier I to Tier II cities, as the GCC expands its presence and remote/hybrid work models become more prevalent.
“Companies are broadening their search beyond established hubs,” notes Anupama Bhimrajka, Vice President – Marketing, Foundit.
Tiwari explains that the gig economy and flexible work models will expand, which will increase recruitment.
(Cover image and infographics designed by Nihar Apte)