Despite a strong global hiring outlook, Indian employers are expecting a cautious first quarter of 2025 due to ongoing talent shortages, according to the ManpowerGroup Talent Shortage Survey.
The survey, conducted across four regions in India, revealed that 80% of employers are struggling to find qualified candidates, exceeding the global average of 74%. This persistent talent gap, prevalent since 2022, continues to impact recruitment efforts across all sectors.
“The persistent talent shortage, with 80% of organisations struggling to fill roles in 2025, underscores the urgent need for collective action,” said ManpowerGroup India and West Asia managing director Sandeep Gulati.
Industries such as IT, energy and utilities are experiencing the challenges due to the high demand for specialised skills, particularly in data and IT fields.
To combat these shortages, employers are focusing on internal mobility, with 39% offering upskilling and reskilling opportunities to current employees. This strategy aims to reduce recruitment costs while filling critical positions from within the organization.
While only 22% of employers are increasing temporary recruitment, 38% are exploring new talent pools and 29% are raising wages to attract qualified candidates.
Regional disparities in talent shortages remain significant, with South India facing the steepest challenges, where 85% of employers report difficulty finding talent.
The survey also shed light on the complexities of adopting artificial intelligence (AI). Employers identified training staff, finding qualified AI talent, and offering greater location flexibility (e.g., hybrid or remote work) as the top barriers to fully leveraging AI technologies.
This report underscores the need for a multifaceted approach to address the talent shortage in India. By investing in employee development, exploring new talent pools, and embracing innovative recruitment strategies, employers can navigate these challenges and ensure business growth in the coming year.