Jobs are rising and workers are searching: Why are positions still vacant?

India's job market is at an unexpected turning point. While job postings remain far higher than before the pandemic, a tension is emerging between a workforce eager to move and employers who are hiring more selectively than before. According to Indeed's Hiring Tracker, nearly half of employers say their hiring volumes have not altered in the third quarter of FY25-26 compared with the previous quarter, while roughly one-third report a surge. Employee sentiment tells a different story: 77 percent say they are actively or somewhat actively searching for a new role, but only about one-third believe they will actually secure one.

The demand for workers has not collapsed, with job postings rising 3.3 percent in January 2026 and remaining 84 percent higher than pre-pandemic levels. However, the character of hiring has changed, with employers focusing on filling roles that are directly tied to business continuity and revenue generation. Sales and business development positions lead demand at 42 percent, followed by engineering roles at 35 percent. Manufacturing and supply chain functions also remain critical, with 32 percent and 30 percent of employers prioritising those roles respectively.

The report also highlights the impact of artificial intelligence on the job market. AI-related capabilities are increasingly embedded across industries, with 14 percent of Indian job postings referencing AI skills in January, up from 12.8 percent just three months earlier. The strongest demand is visible in data science and analytics roles, which have seen a 25 percent increase in postings over the past three months.

The labour market looks busy but feels uncertain, with a job market that is active but cautious. Employers are weighing more selectively than before, and workers are searching for new roles but uncertain about securing them. The result is a labour market that is experiencing a silent restructuring of jobs, with AI playing a significant role in shaping the future of work.