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Home Analysis

AI job market grows by 42% over two years; 14% increase expected this year: foundit insights tracker

by MN4U Bureau
January 22, 2025
in Analysis
Reading Time: 5 mins read
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AI job market grows by 42% over two years; 14% increase expected this year: foundit insights tracker
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MUMBAI: As per the latest data from jobs and talent platform, foundit (formerly Monster APAC & ME), India’s hiring landscape is set to make a strong start in 2025, reflecting optimism and growth across diverse industries. The foundit insights tracker (fit) reveals that India’s hiring activity has surged by an impressive 12% over the past six months, with a 31% year-on-year (YoY) increase in recruitment in December. The growth is reflected across 22 of the 27 sectors monitored, with Consumer Electronics, Manufacturing, and Construction and Engineering leading the charge with 60%, 57% and 57% YoY respectively.

“The growth in hiring activity across sectors underscores the resilience, adaptability, and dynamism of India’s job market. What’s particularly exciting is the explosive growth in AI at 42% in just two years, showcasing the transformation of an important skill set to a core driver of the economy. With a projected 14% further growth in AI hiring in 2025, we are witnessing a paradigm shift where AI is no longer a futuristic concept, but a fundamental element of India’s present and future workforce” said V Suresh, CEO of foundit.

Sustained momentum and improving hiring sentiments: In December 2024, job demand rose by 5% month-on-month (MoM), with the hiring index reaching an impressive 334—a testament to growing business confidence and economic momentum. Over the last three months, an 8% increase in hiring activity highlighted sustained progress, showcasing the resilience and adaptability of Indian businesses in a dynamic market. This steady upward trend underscored the nation’s commitment to fostering sustainable, long-term employment opportunities through strategic initiatives.

Healthcare and HR sectors drive job growth surge: Medical roles experienced a remarkable 44% annual growth, fuelled by telemedicine, diagnostics, and specialised nursing, with health tech roles like Healthcare Analyst also seeing a 12% increase. HR & Admin roles saw a 21% rise in the last three months, driven by the need for strategic workforce management and AI integration, as companies are increasingly focused on optimising employee productivity, streamlining operations, and leveraging data-driven insights to enhance decision-making processes. Tier-2 and tier-3 cities emerged as healthcare hiring hubs, accounting for 30% of new roles. The increasing demand for professionals skilled in biotechnology, medical coding, telemedicine platforms and AI-driven healthcare solutions underscores the industry’s rapid transformation.

Sector-specific hiring trends

Sector
Key Trends and Insights
Telecommunication
Strong revival with 25% growth in the last three months; momentum expected to continue into 2025.
  • Demonstrated a growth of 38% YoY in recruitment activity
BFSI
30% growth over the past six months, positioning it as a leading sector.
  • Showcased a growth of 37% YoY in recruitment activity
  • The sector witnessed 2% growth in AI related roles on an annual basis
Travel and Tourism
Experienced a 14% decline over the past six months.
Advertising & Public Relations
14% increase in related job postings.
  • 11% growth last month driven by demand for expertise in AI-driven campaigns, digital storytelling, audience analytics, and engagement optimisation
Automation
10% growth last month, 11% over the last three months.
  • Demand for Quality Engineers (23% growth), Automation Engineers (17% growth), and Robotics Specialists (14% growth)
  • Demand-supply gap being addressed by upskilling
  • 19% projected growth in 2025

AI/ML specialists and Data Analysts top job demand as key skills drive growth
AI/ML specialists led job demand with a 21% increase, followed by Data Analysts at 14%. Digital Marketing Specialists and Software Developers saw growth at 12% and 10%, respectively. Product and Project Managers each rose by 5%. Key skills in demand include Data Analysis (18%), Digital Marketing (12%), Java (10%), and DevOps (5%).

Entry to Mid-Senior roles in high demand
Annual Hiring demand varies across experience levels, with entry-level roles (0-3 years) increasing by 18% and associate-level positions (4-6 years) up by 15%. Mid-senior roles (7-10 years) led with a 20% rise. Senior-level positions (11-15 years) grew by 5%, while executive roles (16+ years) declined by 6%.

Coimbatore, Bengaluru, and Mumbai lead growth trends

City
Key Trends and Insights
Coimbatore
Led with 58% YoY growth
Bengaluru
Increased by 41% YoY
Chennai
Recorded 37% YoY growth
Mumbai
Saw 11% MoM demand, along with 23% YoY increase
Delhi – NCR
Achieved strong annual growth at 33% YoY
Hyderabad
Showed robust annual growth of 36% YoY
Pune
Registered growth of 35% YoY

In December, annual hiring surged across all 13 monitored cities. Coimbatore led with a 58% year-on-year growth, while Bengaluru and Chennai followed with increases of 41% and 37%, respectively. Mumbai topped month-over-month demand with an 11% rise, along with a 23% YoY increase. Delhi-NCR and Hyderabad also showed strong annual growth at 33% and 36%, respectively, though their monthly gains were modest.

Top AI hiring trends: AI jobs in India exploded by 42% over the past two years reaching 253,000 positions. Top skills include Python, AI/ML, Data Science, Deep Learning, SQL and Software Development. Additionally, expertise in specialised AI frameworks such as TensorFlow (15%) and PyTorch (16%) was highly sought after by employers.

Skills
% share in all jobs posted
Python
53%
AI/ML
32%
SQL
21%
Software Development
21%
Data Science
18%
PyTorch
16%
Tensor Flow
15%

Bengaluru, Pune, and Delhi/NCR led AI hiring by 26%, 17%, and 14% respectively. A further 14% growth in AI jobs is projected for 2025, driven by increasing AI adoption across BFSI, Healthcare, Retail, and Manufacturing.

Location
% share of AI jobs
Bengaluru
26%
Pune
17%
Delhi/NCR
14%
Mumbai
13%
Hyderabad
10%
Tags: founditV Suresh

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