A recent report has revealed that approximately four out of five Indian employers anticipate a conservative approach to hiring in the first quarter of 2025, citing persistent talent shortages as a major obstacle to recruitment.
The report is based on the ManpowerGroup Talent Shortage Survey of more than 3000 employers across the four regions of the country.
According to the report, despite having the highest hiring demand globally, 80 per cent of the employers in India struggle to find the right talent they need.
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Talent scarcity in India continues to outpace global trends
The trend has persisted since 2022 and is more than the global average, where 74 per cent of employers are reporting talent scarcity (the global figure remains unchanged over 2024).
The report further emphasised that talent shortages are a widespread issue, affecting all regions, and have become a hallmark of the current global job market.
‘Talent shortage underscores the urgent need for collective action’
“The persistent talent shortage, with 80 per cent of organisations struggling to fill roles in 2025, underscores the urgent need for collective action,” said Sandeep Gulati, Managing Director, ManpowerGroup India, and Middle East.
Certain industries, particularly IT, energy, and utilities, are experiencing acute talent shortages, driven by escalating demand for specialised skills in areas like data and IT. The IT sector tops the list with 84 per cent hiring demand, closely followed by energy and utilities, and healthcare and life sciences, both at 81 per cent.
Gulati said that in South India, where the shortage is especially pronounced (85 per cent), the pressure on medium and large enterprises is significant.
“Employers are increasingly prioritising upskilling strategies to bridge this gap, reflecting a shift towards sustainable solutions over short-term measures like wage increases. Addressing this challenge will require a robust partnership between businesses, governments, and educators to build a future-ready workforce,” he added.
As per the report, 80 per cent of employers face difficulty finding skilled talent, remaining consistent in the last three years, and increasing by 86 per cent from 2021’s survey.
(With inputs from agencies)