IT Sector Declines While Retail and Manufacturing Surge, TechGig

India’s fresher hiring outlook has strengthened for the second half of 2026, with 75% of employers intending to hire new graduates, up from 73% in the first half of the year. However, this growth masks a significant realignment in the entry-level labour market, as demand from the IT sector moderates.

Retail, e-commerce, and manufacturing are emerging as the strongest markets for entry-level talent, recording 93% and 89% fresher hiring intent respectively. This indicates a broadening of opportunities beyond India’s traditional technology hiring engine, driven by industrial growth, consumption, and digital commerce.

Shifting Employer Expectations

In contrast to the rising intent in other sectors, the IT sector’s hiring intent for freshers declined from 81% to 76%. Consulting, telecommunications, marketing and advertising, media and entertainment, and educational services also scaled back their recruitment plans for new graduates.

Employers are becoming more selective, with a greater emphasis on candidates’ readiness to contribute from the outset. Shantanu Rooj, Founder and CEO of TeamLease EdTech, highlighted this shift, stating it is “less about how many freshers get hired, and more about which freshers get hired.”

In-Demand Skills and Roles

Employers, particularly in IT and consulting, increasingly expect candidates to demonstrate AI fluency, applied problem-solving, and hands-on project experience. Internships, portfolios, assessments, and real-world projects are gaining importance alongside academic qualifications.

Despite moderation in overall IT hiring, demand for technology-enabled roles remains strong across industries. Sought-after entry-level positions include AI Application Developer, Junior Semiconductor Design Engineer, and Data Centre Operations Associate.

Certifications in VLSI chip design, AI engineering, cloud security, and digital marketing analytics are also attracting employer interest, signalling demand for specialised skills linked to India’s industrial and digital expansion.

Geographically, Bengaluru leads with 89% fresher hiring intent, followed by Mumbai at 75% and Chennai at 71%. Hyderabad stands at 60%, Delhi at 49%, and Pune at 41%, reflecting regional disparities in the job market.

The report also identified limited practical exposure, rapidly changing skill requirements, and employers’ growing selectivity around training investments as significant challenges for early-career talent. This creates a difficult transition for graduates expecting their first job to provide practical experience, while employers favour candidates capable of contributing with shorter learning curves.