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AI, upskilling, and sectoral growth lead India's evolving 2024 job market

While the IT/ software services sector faced challenges earlier in the year, including a 17 per cent decline in the first quarter, the sector rebounded with a 12 per cent growth by the third quarter

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Illustration: Ajay Mohanty

Abhijeet Kumar New Delhi

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As 2024 winds down, the Indian job market stands as a testament to adaptability and transformation. This year, hiring trends reflected an interesting bell curve graph, with a few sectors lagging while others picking up at later stages of the year, marked by economic shifts, technological advances, and an ever-evolving workforce. From metro cities to emerging hubs, and across sectors ranging from IT to FMCG, the country’s employment landscape showcased a dynamic blend of challenges and opportunities.
 
As another exciting year comes to a close, we delve into the key trends that shaped India’s hiring story — where layoffs met resurgence, upskilling became a necessity, and emerging industries fuelled fresh possibilities.
   
In fact, the Indian job market demonstrated remarkable adaptability in 2024, navigating shifts across industries while setting the stage for future growth. Data from Naukri’s hiring trends analysis indicates that the first quarter began on a cautious note, with a 10 per cent year-on-year (Y-o-Y) decline in hiring activity. However, stabilisation in the second quarter and robust recovery in the third quarter marked a resurgence, driven by the IT sector, emerging regional hubs, and increased demand for freshers.
 

Technology leads the charge in new jobs 

The demand for AI and machine learning (ML) professionals remained strong, with annual growth rates between 14 per cent and 47 per cent. By the third quarter, hiring for machine learning and data-related roles surged by 102 per cent Y-o-Y. Key profiles such as machine learning engineers, big data testing engineers, data science analysts, and full stack data scientists continued to dominate.
 
While the IT/software services sector faced challenges earlier in the year, including a 17 per cent decline in the first quarter due to global economic pressures, the sector rebounded with a 12 per cent growth by the third quarter. This recovery reflects the industry’s ability to adapt to technological advancements and workforce shifts, setting a strong foundation for 2025.
 
An end-of-year note from NLB Services highlighted that fresher hiring in the Indian IT sector is expected to grow by 15-20 per cent in the coming years. Additionally, demand for specialised roles in AI, ML, data analytics, and cloud technologies could rise by 30-35 per cent as businesses increasingly adopt emerging technologies.
 

FMCG and pharma sector hirings thrive 

The fast-moving consumer goods (FMCG) sector maintained steady growth, peaking at 20 per cent in the third quarter, according to the Naukri.com data. Meanwhile, the pharma and biotech industries continued to thrive, benefiting from sustained healthcare demand. Roles like sales manager and marketing manager remained particularly sought after in these sectors.
 
Meanwhile, the food processing industry, projected to double in size by 2025-26, also contributed to this growth. According to a report by TeamLease EdTech, hiring intent for freshers in the FMCG sector rose sharply from 27 per cent in the first half of 2024 to 32 per cent in the second half, driven by deeper penetration into rural and semi-urban markets. Cities like Bengaluru, Delhi, and Hyderabad saw high demand for roles such as food engineers, logistics coordinators, and brand management trainees.
 

Financial and manufacturing sectors gain ground 

On the other hand, the banking and financial services sector experienced steady growth throughout the year, while the insurance sector recorded a 37 per cent jump in the second quarter, attributed to rising demand for financial security. The momentum carried into the third quarter with a 23 per cent growth in hiring.
 
The manufacturing sector also demonstrated resilience, achieving a 6 per cent Y-o-Y growth. The auto and auto ancillary segments showed strong recovery, starting at 5 per cent in the second quarter and peaking at 7 per cent in the third quarter.
 

White-collar jobs show positive momentum 

The white-collar job market saw a notable uptick in hiring activity in 2024. The Indeed Hiring Tracker revealed that 73 per cent of employers were actively seeking new talent between April and June 2024, which is a 7 per cent rise compared to the first quarter.
 
Sales and marketing roles accounted for a significant portion of new opportunities, comprising 30 per cent and 23 per cent of all hires, respectively. Demand for IT roles also remained robust, with data analysts, data engineers and data scientists leading the pack.
 

Metro cities and regional powerhouses drive growth 

Chennai, Hyderabad, and Pune spearheaded the recovery among metro cities, with Pune recording an impressive 13 per cent growth in hiring during the third quarter. Notably, this upward trend extended beyond metropolitan hubs, data showed. Cities like Udaipur, Indore, and Bhubaneswar saw significant hiring momentum, with Udaipur reporting a 17 per cent rise and Indore achieving a 14 per cent boost. Jaipur also cemented its place as a growing tech hub, registering a staggering 48 per cent growth in IT sector hiring during the third quarter.
 

Upskilling remains the key to bridging skill gaps 

Despite robust hiring trends, the widening skills gap remained a concern during the year. According to the Indeed Hiring Tracker, 61 per cent of employers anticipate these gaps to grow significantly in the next two years if skilling initiatives are not prioritised. Only 23 per cent of companies currently offer personalised training programs to address this issue.
 
Demand for technical expertise in areas such as data science, cybersecurity, and coding remains high, alongside essential soft skills like critical thinking, communication, and time management. Employers emphasised the importance of upskilling, with Indeed Hiring Tracker data showing that 61 per cent of employees expect salary hikes of 20-40 per cent through skill enhancement. With a promising outlook for 2025, the focus now shifts to bridging skill gaps and ensuring that the workforce is ready to meet future demands.
 

Key talent trends across industries

 
Banking, Financial Services & Insurance (BFSI)> Demand for business operations professionals tower above other skills at all levels. Investment banking comes second in the demand for BFSI skills.
 
Manufacturing and automotive> Demand for production managers ranks above other skills at all levels of seniority. Supply chain/ logistics professionals come second in skill demand.
 
Information Technology> Hiring of Salesforce developers zooms to the top in 2024. Demand for Java developers is the second highest. Animation & graphics specialists are also in demand.
 
Pharma, healthcare & life sciences> Hiring of specialty doctors ranked first among all roles. Role of research analysts ranks second in demand, followed by demand for management professionals.
 
Retail, FMCG and FMCD> Demand for fashion/ graphic/ accessory designers outpacs other roles. Role of the store manager jumps to the second position, ahead of visual merchandising roles.
 
Energy and utilities> Demand for technical engineers takes the lead in 2024. Supply/ production/ space planning is the second highest in hiring demand, followed by transmission and distribution.  
 
[Source: Randstad India Talent Insights Report 2024]

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First Published: Dec 20 2024 | 2:20 PM IST

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