Nearly 4 in 5 Indian employers report difficulty finding skilled talent in 2025: Report

New Delhi, Jan 23 (IANS) About 4 in 5 employers in India are expecting cautious hiring in the first quarter of 2025, as ongoing talent shortages continue to hinder recruitment efforts, according to a report on Thursday.

The report is based on the ManpowerGroup Talent Shortage Survey of more than 3,000 employers across the four regions of the country.

The report showed that despite the highest hiring demand globally (53 per cent), 80 per cent of employers in India are struggling to find the right talent they need. The trend has persisted since 2022 and is more than the global average, where 74 per cent of employers are reporting talent scarcity (the global figure remains unchanged over 2024).

It also highlighted 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 per cent of organisations struggling to fill roles in 2025, underscores the urgent need for collective action,” said Sandeep Gulati, Managing Director, ManpowerGroup India, and Middle East.

Industries like IT, energy, and utilities are feeling the greatest strain, with demand for specialised skills like data and IT continuing to rise. The IT sector leads with the highest hiring demand 84 per cent, followed by energy and utilities and healthcare and life sciences at 81 per cent each.

Gulati said that in South India, where the shortage is especially pronounced (85 per cent), the pressure on medium and large enterprises is significant.

“Employers are increasingly prioritising upskilling strategies to bridge this gap, reflecting a shift towards sustainable solutions over short-term measures like wage increases. Addressing this challenge will require a robust partnership between businesses, governments, and educators to build a future-ready workforce," he added.

The report showed that 80 per cent of employers report difficulty finding skilled talent, remaining consistent in the last three years, and increasing 86 per cent from 2021's survey.

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

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