India’s job market is wrapping up the financial year on a positive note, with employers ramping up hiring despite ongoing global uncertainty. According to Indeed’s latest ‘Hiring Tracker’, 82% of employers were actively hiring between January and March 2025, reflecting a 3% increase from the previous quarter. The spotlight is clearly on fresh graduates, who now account for more than half of new hires, as companies prepare for FY26 with a focus on tech talent and future-ready teams.

As businesses finalise budgets and future workforce strategies, freshers have emerged as the most sought-after segment, accounting for 53% of all hires in Q4 FY25. The highest demand is in tech-driven roles, with Software Developers (29%), Data Analysts and Scientists (26%), and Sales Executives (23%) topping the list.

Commenting on the trend, Sashi Kumar, Head of Sales at Indeed India, said, “The job market is evolving, and employers are moving ahead with cautious optimism. While fresher hiring remains steady and tech roles continue to grow, especially in software development, data analytics, and AI, there’s also a clear need to bridge the skills gap.”

As the push towards digital transformation accelerates, employers are looking to build teams equipped to navigate AI, machine learning, cybersecurity, and big data. Freshers, often more adaptable to new technologies, are seen as a strategic investment for companies keen on long-term growth.

Despite the enthusiasm for fresher hiring, companies continue to face a recurring challenge: the lack of job-ready skills among new graduates. Nearly 38% of employers cited this as a key concern, pointing to a gap between academic knowledge and industry demands.

While freshers bring enthusiasm and flexibility, many lack the hands-on experience crucial for the modern workplace. Soft skills such as communication, teamwork, and time management are also in short supply, with 27% of employers noting difficulties in workplace integration. An additional 25% pointed to mismatched expectations around compensation and job roles as a growing friction point.

Still, companies are largely committed to investing in freshers. The focus has shifted to hiring individuals who combine technical aptitude with a strong learning mindset, as employers adopt a more deliberate approach in building high-potential teams.

For fresh graduates, the landscape is both promising and fiercely competitive. While there is high intent to hire, job seekers face stiff competition—especially in the tech sector, where seven freshers vie for a single role. Many are also standing firm on compensation expectations.

Indeed’s data reveals that while 72% of employers reported a year-on-year increase in fresher salaries, nearly 60% admitted the raise was modest—limited to around 5%. The average starting salary offered to the class of 2025 was ₹3,50,000 per annum, slightly below the fresher expectation of ₹3,80,000.

Despite the near-alignment, 72% of freshers indicated they would not settle for lower pay, even if roles offered robust learning or growth prospects. This points to a fundamental shift in how the younger workforce values opportunities—with compensation ranking as their top priority.

Kumar noted, “For every job today, there are six freshers competing. That’s a sign of a young, ambitious workforce. Now, it’s time for the ecosystem—especially tech and innovation-driven sectors like AI and cybersecurity—to step up and convert this energy into meaningful impact.”

The growing disconnect between employer expectations and candidate demands highlights the need for clearer job communications. Around 62% of job seekers say they are more inclined to apply for roles that offer transparent details about compensation, responsibilities, and work culture.

To build a stronger talent pipeline, companies may need to focus more on setting realistic expectations and offering better clarity around career growth, learning opportunities, and workplace dynamics.

Looking ahead, the outlook for the first quarter of FY26 remains hopeful. About 34% of employers surveyed plan to continue hiring freshers between April and June 2025. The most in-demand areas are expected to remain within the tech sphere, particularly roles in AI, data science, and cybersecurity.

As India’s job market continues to evolve, fresh graduates are well-positioned to shape the future of work—provided they can meet rising expectations for both technical and soft skills. For employers, the challenge lies in striking the right balance between investment in potential and the immediate need for productivity in a competitive global market.