Employers expect cautious hiring in Q1FY26; 80% cos facing talent scarcity: Survey

Employers in India are expecting cautious hiring in the first quarter of 2025, as ongoing talent shortages are likely to continue to hinder recruitment efforts, according to a survey.

The ManpowerGroup Talent Shortage Survey collected data from more than 3,000 employers across four regions of the country.

Despite the highest hiring demand globally (53%), 80% of employers in India are struggling to find the right talent, a trend that has persisted since 2022 and is more than the global average of 74% that has remained unchanged over 2024.

The survey highlights that no region is immune to shortages, and talent scarcity remains a defining feature of the global labour market.

"The persistent talent shortage, with 80% of organisations struggling to fill roles in 2025, underscores the urgent need for collective action," said ManpowerGroup India and Middle East Managing Director Sandeep Gulati.

Industries like IT, energy, and utilities are feeling the greatest strain, with demand for specialised skills like data and IT continuing to rise.

To find, attract, and recruit talent, employers are offering more upskilling and reskilling opportunities to current employees (39 %), as they aim to reduce recruitment costs by promoting internal mobility.

Increasing temporary recruitment is favoured by only 22% of employers as they show a preference for targeting new talent pools (38%) and increasing wages (29%).

Talent shortages are most prominent in South India (85%).

When asked about Artificial Intelligence (AI), employers cite training staff, finding qualified talent, and offering more location flexibility (hybrid, remote) as the top challenges to fully leverage the technology.