Lull in entry-level tech jobs continues; can India’s non-tech sectors compensate?

It’s not the proverbial lull before the storm, but the one after it.

Following a pandemic-induced hiring frenzy in 2021 and early 2022, the golden tap of tech jobs in India has run dry in the last 12-15 months. New employment generated in core tech and engineering sectors hit a two-decade low in FY24, with legacy IT companies drastically cutting down on hiring. Even startups, which absorbed a fair share of tech talent post the VC funding highs of 2021, have tempered their recruitment plans.

What’s unfolding is quite the white-collar job crisis. There have been record low levels of placements in the IITs—a story that has been well-documented by now—sending chills down the spine of the country’s education system.

“India's fancy education sector is riding on the back of the IT industry. And in the last 20-25 years, the IT industry’s headcount never went down. So, this is a definite problem area, and the next few years will be difficult,” the head of a recruitment agency tells The CapTable.

“The question is: How will the [high] volume jobs be created? Will we be able to create half a million engineering jobs in FY25?” he asks.