The formal labor market of India falls in July, but remains 70% above pre-building level, says report

Although there is no shortage of employees in India, there can often be mismatches between the skills that job seekers possess and the skills that employers are looking for.

The formal job market of India was softened in July, with vacancies on taking a platform indeed by 5.8 percent after two consecutive months of growth. Although the reports of 14.9 percent fell on an annual basis, they remain 70 percent above pre-building levels, which emphasizes the resilience of formal recruitment despite cyclical cooling. The number of vacancies has fallen by 21 percent since the peak in January 2023.

The data of indeed reflecting in the formal economy, where healthcare and logistics are on the rise as the rising sectors, but technology continues to anchor the formal job creation of India.

This trend emphasizes a cooling labor market, even if India has continued its gradual shift from informal work to formal work.

“Even when the overall recruitment slows, Tech remains the heartbeat of the labor market of India. With one in five formal messages for software development, the real challenge is not a question, whether we can build a workforce that is skilled enough to meet it,” said Callam Pickering, indeed APAC Senior Economist.

Despite the overall dip, highly skilled roles continue to lead the recruitment momentum. In the past three months, data and analysis costs grew by 15.4 percent, followed by logistical support with 14.3 percent, therapy at 13.7 percent and dental expert by 13.6 percent. Software development remained consistent with the posts with 9.2 percent in the past three months.

On the other hand, vacancies such as medical information (-12.3 percent), pharmacy (-10.7 percent), education and instruction (-8.0 percent) and doctors and surgeons (-7.8 percent) saw considerable decreases. These contrasting trends emphasize a long -term movement towards technology and other highly skilled roles, even as the general recruitment fluctuations.

Although there is no shortage of employees in India, there can often be mismatches between the skills that job seekers possess and the skills that employers are looking for. Many companies in India are looking for very skilled employees in technology or management. Consequently, the shortages of skills remain common in India, in particular in higher skilled segments, indeed emphasized.

Published on August 29, 2025