India formal job market diversifies beyond tech: Indeed report
Synopsis
Key Takeaways
India's formal job market is broadening well beyond its traditional technology and white-collar base, with consumer-facing and service sectors recording some of the sharpest hiring gains in recent months, according to a report released on Tuesday, 23 June by jobs platform Indeed. The findings suggest a structural shift in where organised employment is being created across the country.
Key Developments
Job postings in India remained 3.4 per cent higher year-on-year in May, though they eased 0.7 per cent on a monthly basis, the Indeed report noted. Over the past three months, the fastest-growing categories were sports (up over 41 per cent), beauty and wellness (over 36 per cent), personal care and home health (over 34 per cent), and cleaning and sanitation (over 27 per cent).
These gains reflect the rapid entry of organised providers into sectors that were previously dominated by informal, unregistered workers — a trend that analysts say is accelerating urbanisation and broadening the formal employment base.
What the Data Says About Tech Hiring
The technology sector, long the anchor of India's formal employment narrative, showed signs of cooling. Software development postings fell 12.3 per cent over the past three months. Declines were also recorded in IT infrastructure, operations and support (down 10.2 per cent), IT systems and solutions (down 9.3 per cent), and data and analytics (down 6.7 per cent). The report, however, described tech-related hiring as remaining in an overall healthy phase despite the near-term softness.
This comes amid a broader global recalibration in technology hiring, with several multinational IT firms slowing headcount growth in response to macroeconomic uncertainty and automation-driven productivity gains.
What Experts Said
Callam Pickering, senior economist for Indeed APAC, said: 'Every month, the Indian workforce gradually transitions towards more formal work arrangements. Job creation in the formal sector is expected to outpace overall employment growth nationwide.' Pickering added that employer demand in India remains healthy and is contributing to urbanisation and economic growth.
The report also noted that formal sector jobs tend to offer better pay, greater job security, and more defined career progression compared with informal employment — factors that make the formalisation trend significant for workers at the lower end of the income ladder.
Remote Work Trends
Remote work opportunities remain uneven across occupations. Over the past three months, approximately 20 per cent of social science job postings mentioned remote work options, ahead of community and social service roles (13.1 per cent) and industrial engineering (12.9 per cent). White-collar and knowledge-economy roles continue to dominate remote listings, while the fast-growing service categories show little remote penetration by nature.
What This Means for India's Labour Market
The diversification of formal hiring signals that India's employment story is no longer solely a technology story. As wellness chains, home-services platforms, fitness networks, and personal care brands scale up with organised workforces, they are pulling millions of workers into structured employment for the first time. Whether this momentum sustains will depend on consumer spending trends and the pace at which organised players continue to displace informal operators in these sectors.