India’s formal job market dips in July but remains 70% above pre-pandemic levels, says Indeed report

While there is no shortage of workers in India, there can often be mismatches between the skills job seekers possess and the skills employers seek. 

India’s formal job market softened in July, with job postings on hiring platform Indeed declining 5.8 per cent after two consecutive months of growth. While postings were down 14.9 per cent year-on-year, they remain 70 per cent above pre-pandemic levels, highlighting the resilience of formal hiring despite cyclical cooling. The number of job postings has decreased by 21 per cent since peaking in January 2023.

Indeed’s data reflects hiring in the formal economy, where healthcare and logistics are emerging as the rising sectors, but technology continues to anchor India’s formal job creation. 

This trend highlights a cooling labour market, even as India continues its gradual shift from informal work towards formal employment. 

“Even when overall hiring slows, tech remains the heartbeat of India’s job market. With one in five formal postings for software development, the real challenge isn’t demand, it’s whether we can build a workforce skilled enough to meet it,” said Callam Pickering, Indeed’s APAC Senior Economist.

Despite the overall dip, high-skilled roles continue to lead the hiring momentum. Over the past three months, data & analytics postings grew by 15.4 per cent, followed by logistic support at 14.3 per cent, therapy at 13.7 per cent and dental at 13.6 per cent. Software development remained consistent with postings up 9.2 per cent in the last three months.

On the other hand, job postings such as medical information (-12.3 per cent), pharmacy (-10.7 per cent), education & instruction (-8.0 per cent), and physicians & surgeons (-7.8 per cent) saw significant declines. These contrasting trends highlight a long-term move towards tech and other high-skill roles, even as overall hiring fluctuates.

While there is no shortage of workers in India, there can often be mismatches between the skills job seekers possess and the skills employers seek. Many companies in India are looking for highly skilled workers in tech or management. Consequently, skill shortages remain common in India, particularly in higher-skilled segments, Indeed highlighted.

Published on August 29, 2025

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