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India’s job market is on an impressive growth trajectory, with hiring activity surging by 41% year-on-year (YoY) in February 2025, according to a report by foundit (formerly Monster APAC and ME). The fresher job market played a pivotal role in this upward trend, reflecting sustained employer demand for entry-level talent.

Fresher Hiring Witnesses 26% Growth

The report highlights a 26% YoY increase in fresher hiring, indicating that companies are actively seeking young talent with practical skills and industry-relevant expertise. Employers are increasingly shifting towards a skill-based hiring approach, prioritizing hands-on experience over traditional qualifications.

"The shift towards skill-based hiring is undeniable. Employers are increasingly prioritizing candidates with practical expertise and industry-relevant skills," said foundit CEO V Suresh.

IT Sector Leads the Hiring Boom

Among industries, IT – Hardware and Software emerged as the top recruiter of freshers, nearly doubling its hiring share from 17% in 2024 to 34% in 2025. This surge underscores the rapid digital transformation and the rising demand for tech talent in India.

Additionally, the Recruitment and Staffing industry has also shown a notable increase in fresher hiring, signaling growing opportunities across diverse sectors.

BFSI & BPO/ITES Sectors See a Decline

While fresher hiring is booming overall, some industries have seen a decline in recruitment activity. The Banking, Financial Services, and Insurance (BFSI) sector, along with the BPO/ITES industry, have reported a drop in fresher hiring, reflecting shifting industry priorities and market adjustments.

Tier II Cities Emerging as Job Hubs

Beyond the traditional metropolitan cities, Tier II cities are gaining prominence as key hubs for fresher job opportunities. Cities such as Nasik, Jaipur, Surat, Coimbatore, Indore, Kochi, Thane, Vadodara, Chandigarh, and Nagpur are witnessing increased hiring activity, offering new avenues for job seekers outside major urban centers.

Conclusion

India’s job market is showing remarkable resilience, with fresher hiring driving substantial growth. As companies continue to prioritize skill-based hiring, fresh graduates and entry-level professionals can capitalize on new opportunities, particularly in the IT sector and Tier II cities. However, with shifts in industry demands, job seekers must upskill and adapt to remain competitive in the evolving employment landscape.