A significant talent shortage is prompting cautious hiring strategies among 4 in 5 employers in India for the first quarter of 2025, according to a report by the ManpowerGroup Talent Shortage Survey, which analyzed responses from over 3,000 employers across the country.
Despite having the highest hiring demand globally at 53%, 80% of employers in India report struggling to find the right talent. This trend has persisted since 2022 and surpasses the global average, where 74% of employers face similar challenges. The shortage of skilled talent remains a critical issue across all regions, highlighting a global labor market struggle.
Sandeep Gulati, Managing Director of ManpowerGroup India and the Middle East, emphasized the urgency of the situation, stating, “The persistent talent shortage, with 80% of organizations struggling to fill roles in 2025, underscores the urgent need for collective action.”
Industries such as IT, energy, and utilities are experiencing the greatest strain, with a high demand for specialized skills like data and IT. The IT sector leads with the highest hiring demand at 84%, followed by energy and utilities, and healthcare and life sciences at 81% each. South India is particularly affected, with 85% of employers reporting significant pressure on medium and large enterprises.
In response to these shortages, employers are increasingly focusing on upskilling strategies, reflecting a shift towards sustainable solutions over short-term measures like wage increases. Gulati added that addressing this challenge will require robust collaboration between businesses, governments, and educators to build a future-ready workforce.
The report indicated that 80% of employers have consistently reported difficulty in finding skilled talent over the past three years, with a notable increase of 86% since the 2021 survey.
To mitigate recruitment challenges, employers are offering more upskilling and reskilling opportunities to current employees (39%), promoting internal mobility to reduce recruitment costs. Temporary recruitment remains less favored, with only 22% of employers opting for it. Instead, 38% are targeting new talent pools, and 29% are increasing wages to attract skilled workers.
This cautious yet strategic approach underscores the ongoing challenges and the need for innovative solutions to address the talent shortages impacting India’s labor market.
