# India labor market and employment trends

> Live situation record from CLSTR: https://clstr.news/situations/india-labor-market-and-employment-trends
> Updated: 2026-08-11T21:00:00.000Z. Sources: 31. Developments: 2.

India is experiencing shifts in its labor market characterized by declining unemployment rates and changing hiring trends. According to the 2025 Periodic Labour Force Survey (PLFS), the overall unemployment rate for individuals aged 15 and above fell to 3.1%, while youth unemployment (ages 15–29) decreased to 9.9% from 10.9% in 2022. The data also indicates a structural shift toward regular wage or salaried positions, which rose to 23.6% in 2025.

Looking toward the second half of 2026, the hiring outlook for freshers is expected to strengthen, with intent rising to 75%. This recruitment is largely driven by the e-commerce, technology start-up, and retail sectors, alongside strong demand in manufacturing and FMCG. However, the recovery is uneven, as the Information Technology sector saw hiring intent drop from 81% to 76%. There is also an increasing emphasis on capability-led hiring, prioritizing practical skills and AI fluency.

## Claims

- The global youth unemployment rate rose to 12.4% in 2025, affecting 67 million people. (corroborated by 20 sources)
- The share of youth not in employment, education, or training (NEET) rose to 20%, totaling 257 million people. (corroborated by 19 sources)
- The Arab States recorded the highest youth unemployment rate at 26.2%. (corroborated by 16 sources)
- Artificial intelligence poses a risk to youth employment by automating middle-skilled roles. (corroborated by 14 sources)
- Youth unemployment in North America increased from 8.3% in 2023 to 9.8% in 2025. (corroborated by 14 sources)
- Approximately 6.1% of jobs held by young people aged 15 to 29 are in areas vulnerable to artificial intelligence transformations. (corroborated by 5 sources)

## Timeline

### 2026-08-11: International Labour Organization reports rise in global youth unemployment

Global youth unemployment rose to 12.4% in 2025, affecting 67 million people. The ILO warns that economic stagnation and AI automation of middle-skilled roles are driving this growing crisis.

27 sources. https://clstr.news/cluster/india-employment-data-shows-declining-unemployment-and-rising-salaried-jobs

### 2026-08-10: India fresher hiring outlook rises to 75% for H2 2026

India’s fresher hiring intent is projected to rise to 75% in H2 2026, led by e-commerce, retail, and manufacturing, despite a decline in recruitment interest within the IT sector.

4 sources. https://clstr.news/cluster/india-fresher-hiring-outlook-rises-to-75-for-h2-2026

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Cite as: India labor market and employment trends. CLSTR, https://clstr.news/situations/india-labor-market-and-employment-trends