The shortage of new jobs that the country's youth has been facing may be easing, according to new non-official data. And the highest share of job postings for first-time workers was from the information technology (IT) and recruitment/staffing industries with over 32 percent and 12 percent share of jobs, respectively, dedicated to entry-level professionals, according to data shared by foundit.
The jobs site gathered data from May 2023 to May 2024 and observed that demand for freshers has increased by 5 percent over the last six months.
Industry reports indicate that IT companies, in both the hardware and software sectors, are showing intent to hire freshers, signalling a shift in hiring strategies in India. Hiring of off-campus talent had stalled for almost a year and companies had been looking to lateral placements—basically, poaching from rivals—to fill holes in their organisations. That freeze on new hires is over, and trend is largely driven by ongoing restructuring efforts within the industry, focusing on adopting new technologies, optimising costs, enhancing innovation and ensuring scalability.
Startups in the IT services and internet segments lead in fresher hiring, with 23 percent and 22 percent of jobs directed to new graduates, respectively. While job openings in the IT industry did decline in the January-March quarter, engineering graduates are in demand for 28 percent of jobs in startups alone. Other roles being filled across startups are consultants (10 percent), sales/executive managers (4 percent) and operations executive/manager (4 percent).
Further, foundit data reflects that Delhi-NCR or National Capital Region (21 percent) hosts the highest share of job postings for freshers, followed by Bengaluru (14 percent). Notably, fresher hiring was highest in the bigger cities Mumbai (8 percent), Chennai (8 percent), Pune (8 percent) and Hyderabad (8 percent) were recorded as the next few top locations for hiring freshers.
“We’re seeing a clear trend where startups and other companies are increasingly valuing skills over just academic credentials. This shift means that young professionals need to focus on acquiring relevant skills to stand out in the competitive job market. To bridge this gap, there’s a pressing need for better learning and development initiatives within our educational system. At foundit, we’re committed to supporting this shift through various initiatives, including continuing with our annual virtual career fair for freshers and young professionals,” said Sekhar Garisa, CEO of foundit.
Bengaluru offers the highest average fresher salary
According to foundit data, Bengaluru stands out with the highest average fresher salary of 4.16 lakh per annum (LPA) among major Indian cities. Following closely are Mumbai at 3.99 LPA, Delhi-NCR (3.89 LPA), Chennai (3.84 LPA), Pune (3.8 LPA), Kolkata (3.39 LPA) and Coimbatore (3.35 LPA)
Software and hardware companies accounted for the highest share of entry-level positions at 32 percent. The other top functions looking to hire freshers include sales and business development (14 percent), human resources and administration (8 percent), healthcare (8 percent), and marketing and communications (8 percent). The Indian IT, staffing and BFSI or banking, financial services and insurance industries are particularly seeking tech talent skilled in cloud computing, data science, artificial intelligence and cybersecurity. Additionally, soft skills such as communication, problem-solving and critical thinking are highly valued.
As per the data on salary brackets for freshers, new graduates in the IT – software and hardware segment earn the highest salaries, ranging from 4.07-7.49 LPA. This is followed by the BFSI sector, which compensates freshers with average salaries ranging from 3.06-5.49 LPA. Other industries offering competitive compensation include the automotive, engineering, FMCG, and food and packaged food industries, with average salaries ranging from 3.11-5.38 LPA.
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