80% of Indian Employers Struggle to Find Skilled Talent in 2025: Study
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Synopsis
A recent report reveals that nearly 80% of employers in India are facing challenges in hiring due to ongoing talent shortages. The findings highlight the urgent need for upskilling strategies and collaborative efforts among various stakeholders to address the skills gap in the labor market.
Key Takeaways
- 80% of employers in India anticipate cautious hiring.
- Talent shortages have persisted since 2022.
- Industries like IT and healthcare face the greatest demand.
- Upskilling is prioritized over wage increases.
- Collaboration is essential for addressing workforce challenges.
New Delhi, Jan 23 (NationPress) Nearly four out of five employers in India are bracing for cautious hiring in the initial quarter of 2025, as persistent talent shortages continue to obstruct recruitment efforts, according to a Thursday report.
This report is derived from the ManpowerGroup Talent Shortage Survey, which surveyed over 3,000 employers across the country's four regions.
Findings revealed that despite a global hiring demand of 53 percent, an alarming 80 percent of Indian employers are facing challenges in locating the skilled talent they require. This trend has been ongoing since 2022 and exceeds the global average, where only 74 percent of employers report difficulties in finding talent (this global figure has remained stable through 2024).
Furthermore, the data indicates that no region is spared from these shortages, making talent scarcity a characteristic aspect of the worldwide labor market.
“The ongoing talent shortage, with 80 percent of organizations wrestling to fill positions in 2025, highlights the pressing need for unified action,” stated Sandeep Gulati, Managing Director of ManpowerGroup India and the Middle East.
Industries such as IT, energy, and utilities are experiencing the most significant pressure, as the demand for specialized skills like data and IT continues to escalate. The IT sector tops the list with a remarkable 84 percent hiring demand, followed closely by energy and utilities, as well as healthcare and life sciences, both at 81 percent.
Gulati noted that in South India, where the shortage is particularly acute at 85 percent, medium and large enterprises are under substantial strain.
“Employers are increasingly focusing on upskilling strategies to mitigate this gap, signifying a shift towards sustainable solutions over short-term tactics such as wage hikes. Addressing this challenge necessitates a strong collaboration among businesses, governments, and educational institutions to cultivate a workforce prepared for the future,” he added.
The report indicated that 80 percent of employers are struggling to find skilled talent, a figure that has remained steady for the past three years and has increased by 86 percent since the 2021 survey.
To attract and secure talent, employers are providing more upskilling and reskilling opportunities for current employees (39 percent), aiming to cut recruitment costs by promoting internal mobility.
Only 22 percent of employers prefer increasing temporary recruitment, while 38 percent are targeting new talent pools and 29 percent are raising wages, according to the report.
