The IT industry has recently faced a downturn, leading to a decline in new graduate hiring. A recent study found that he saw a 30% drop in freshman recruitment compared to the previous two years. However, in new technology roles such as AI, ML, big data, cloud and cybersecurity, he expects headcount to increase by 40% to 60% in the coming quarters.
IT departments are grappling with several challenges, including the rise of automation, artificial intelligence, and changing customer preferences. These challenges have reduced demand for new talent and reduced the number of jobs available to recent graduates. Compared to 2022, there are nearly 20% fewer new job openings for recent graduates this year, especially in IT, according to a research report from talent management firm Spectrum Talent Management.
Job seekers recognize that “up-skilling” is the key to market competitiveness and prefer technology-savvy professionals such as blockchain, cybersecurity and AI/ML DevOps.
Rapid advances in technology and increasing globalization have made the job market highly dynamic, sensitive to global market turmoil.
The factors behind the slump in hiring are:
Further Focus on Upskilling
One of the main drivers is the shift in focus from hiring new employees to upskilling and reskilling existing employees. Additionally, many companies are opting for contract rather than permanent employment to cut costs, resulting in almost a 20% increase in employment compared to last year.
Employment decline uneven
The survey also highlights that the decline in employment is not even across all cities and sectors. While his Tier 1 cities such as Bangalore and Hyderabad still saw steady demand for fresheners, Tier 2 and his Tier 3 cities saw a more significant slowdown.
“The IT sector is going through a period of transition, and we are seeing a shift towards more contract-based hiring and upskilling of existing employees. “We expect the situation to improve in the coming years as we move forward. The downturn in IT jobs in the current market is clear, but short-lived, and will react strongly to global headwinds,” said Spectrum Talent. Director of Management Sidarth Agarwal said.
