After months of slowing down, India’s job market is back on the upswing. But what’s even more telling is where the growth is happening- think childcare, education, and artificial intelligence.
India’s job postings on Indeed rose by 8.9% in May, marking a strong rebound after eight consecutive months of decline, according to new data from global hiring platform Indeed. While job postings are still 1.8% lower than a year ago and 16% below their peak, they remain nearly 80% higher than pre-pandemic levels—one of the strongest performances among major global economies.
India leads in job creation among peers
Unlike countries such as the UK, New Zealand, and Switzerland, where job postings are now below pre-pandemic levels, India’s employment landscape remains relatively robust. Callam Pickering, APAC Senior Economist at Indeed, attributes this resilience to India’s ongoing shift toward a more formal economy. “As India transitions, job creation in the formal sector will outpace overall employment growth. Other economies aren’t undergoing this kind of transformation,” he noted.
Hiring accelerates across diverse sectors
Nearly 80% of occupations in India experienced job posting growth over the past three months. The biggest gains came from Childcare (+27%), Personal care & home health (+25%), Education (+24%) and Production & manufacturing (+22%)
Meanwhile, sectors such as dental services (-10.2%), agriculture (-8.6%), and software development (-4.2%) witnessed declines. Still, software development continues to dominate the job market, making up one in five postings on Indeed—a reflection of India’s significance in global tech hiring.
Generative AI jobs on the rise
One of the standout trends in 2025 is the sharp rise in generative AI-related jobs. As of May, 1.5% of all job listings in India mention generative AI, more than double compared to last year. The technology is most commonly cited in Data analytics (12.5% of roles), Software development (3.6%), Scientific research (3.1%) and as well as in marketing and management roles
Regional hubs for these jobs include Karnataka (2.4%), Telangana (2.3%), and Maharashtra, which has the highest overall job volume.
According to the report, India’s formal job market continues to offer promising opportunities. However, while there’s no shortage of candidates, matching the right skills to roles remains a challenge, especially in emerging fields like AI.