India's formal job market posted a 1.8 per cent moderation in hiring activity in June 2025, marking the third consecutive monthly decline, yet postings remained 1.5 per cent higher year-on-year and approximately 85 per cent above pre-pandemic levels, according to a report released on Wednesday, 29 July by global jobs platform Indeed. The data signals a labour market in transition rather than retreat.

A Market Turning Sector-Specific

Indeed's recruitment data from formal employers reveals that hiring is no longer a broad-based surge but an increasingly targeted one. Over the past three months, demand has broadened well beyond traditional white-collar roles, with healthcare, hospitality, and consumer-facing occupations emerging as the clearest growth pockets.

Notably, job postings in therapy and food preparation and service each recorded gains of over 18 per cent. Roles for physicians and surgeons grew more than 17 per cent, while sports-related positions and medical technicians each expanded by over 15 per cent. This cluster of gains points to rising domestic consumption and a post-pandemic acceleration in organised healthcare delivery.

Technology Hiring Recalibrates

The healthcare-led gains were offset by a pronounced cooling in technology roles. The report recorded three-month declines of 18 per cent in software development and IT infrastructure, operations and support, a 16 per cent fall in data and analytics, and a 15 per cent drop in IT systems and solutions.

This comes after several years of exceptionally strong growth in technology hiring — a recalibration that analysts have anticipated as global IT spending cools and Indian firms rationalise headcount after pandemic-era over-hiring. The softness is cyclical rather than structural, according to Indeed's assessment.

What the Economists Said

Callam Pickering, Senior Economist, APAC at Indeed, described the trend as an encouraging structural shift. 'India's formal labour market continues to demonstrate resilience despite some moderation in hiring activity over recent months. What we're seeing is not a broad-based slowdown, but a labour market that is becoming increasingly sector-specific,' he said.

Pickering also highlighted the quality dimension of this shift. Jobs in the formal economy typically carry better wages, greater job security, and clearer career progression pathways. 'This ongoing shift is one reason India's job market continues to outperform many other Indeed markets, with hiring activity remaining well above pre-pandemic levels,' he added.

Why It Matters for Workers and the Economy

The structural move toward healthcare and consumer services is significant for a broader reason: these are sectors that disproportionately employ workers outside the traditional IT-and-finance corridor, widening the formal employment base. If sustained, it could support wage growth in segments of the workforce that have historically had limited access to organised sector jobs.

India's formal labour market has long been a pressure point — the country needs to absorb millions of new entrants each year, and formal job creation remains the primary lever for inclusive growth. The 85 per cent buffer above pre-pandemic hiring levels provides a degree of comfort, even as the monthly trajectory warrants watching.

What to Watch Next

Whether technology hiring stabilises or continues to soften will be the key variable in the months ahead. A recovery in global IT spending — particularly from US-based clients — could reverse the current trend. Meanwhile, sustained momentum in healthcare and hospitality hiring will depend on domestic consumption holding up. The next monthly Indeed report will indicate whether June's moderation extends into a fourth consecutive decline.