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India's Job Market to See 9% Growth in 2025, Led by IT, Retail, BFSI Sectors
Team Finance Saathi
20/Dec/2024
What's covered under the Article:
- India’s job market expected to grow by 9% in 2025, with key sectors driving demand.
- IT sector projected to grow by 15%, followed by retail (12%) and telecom (11%).
- Bengaluru and Coimbatore forecasted to lead in job growth, with significant sectoral shifts.
India’s job market is poised for substantial growth in 2025, with a projected 9% increase in hiring across various sectors. This growth is expected to be driven primarily by the Information Technology (IT), retail, telecommunications, and banking, financial services, and insurance (BFSI) sectors. According to Foundit, formerly known as Monster APAC & ME, the momentum in hiring observed in November 2024 — a 10% increase from the previous year and a 3% rise from the previous month — will likely continue well into 2025.
Key Sectors Driving Job Market Growth
The surge in job creation will be closely linked to the adoption of emerging technologies and shifting business priorities across industries. Innovations in fields such as edge computing, quantum applications, and cybersecurity advancements are expected to reshape talent requirements, particularly in sectors like manufacturing, healthcare, and IT. Additionally, the growth of retail media networks and the increasing use of AI-driven workforce analytics will influence job demands in areas like e-commerce, human resources (HR), and digital services.
Sector-wise Job Growth Projections
- IT Sector: One of the most significant contributors to the growth of the job market in 2025 will be the IT sector, which is expected to see a 15% increase in hiring. This will be driven by the expansion of global capability centres (GCCs) and the growing adoption of multi-cloud environments, enhancing the demand for skilled professionals.
- Retail Sector: Retail hiring is projected to increase by 12%, driven by both traditional and tech-enabled roles. The shift to digital retail channels and the integration of e-commerce technologies are fuelling this growth.
- Telecommunications: The telecom sector is set to grow by 11%, spurred by innovations like AI, 5G, and the Internet of Things (IoT). These technologies are expected to drive both consumer demand and the need for specialized telecom professionals.
- BFSI Sector: The BFSI sector will continue to see growth, especially in finance, accounting, and insurance roles, fueled by digital tools and the increased importance of compliance, diversity, and employee experience.
City-wise Job Growth
Bengaluru and Coimbatore are expected to lead in terms of city-wise job growth. Bengaluru is projected to see a 10% rise in job opportunities, continuing its reputation as the IT hub of India. Meanwhile, Coimbatore is expected to witness a 9% increase in hiring, driven by the growth in manufacturing, consumer electronics, and real estate sectors, alongside expanding tech roles.
Other Sectors Contributing to Growth
Other sectors, such as finance & accounts and HR, are also expected to see growth. The finance & accounts sector is anticipated to grow by 8%, as companies increasingly adopt digital tools for financial processes. The HR sector will see a 7% rise, with an emphasis on talent management, diversity, and employee experience initiatives. Manufacturing and consumer electronics sectors are projected to contribute to the overall employment boost in cities like Coimbatore and Jaipur.
Conclusion
In 2025, India’s job market will continue to evolve rapidly, with significant growth driven by the expansion of emerging technologies and sectoral shifts. The country’s digital transformation and adoption of advanced technologies will lead to the creation of new job roles, as sectors like IT, retail, and telecom continue to thrive. Additionally, Bengaluru and Coimbatore are set to be at the forefront of this employment growth, reflecting broader economic trends in India.
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