1 week ago
AI Creates Jobs in India, but Freshers Face Shrinking Opportunities
AI is creating some new jobs in India and across Asia.
However, it is also changing which workers companies want to hire.
Companies are hiring more experienced people who understand industries and can manage work with other people.
They are hiring fewer beginners, or freshers, for first jobs.
In India, more than half of surveyed IT companies reduced entry-level hiring.
Many affected jobs involve repetitive tasks such as data entry, customer service and basic coding.
AI-related hiring is still mostly happening in the technology industry.
Jobs involving physical work or direct human interaction have been harder to automate so far.
This means AI may create more jobs overall while making it harder for young people to start their careers.
Nomura found that companies across Asia announced about 131,000 AI-related jobs and 61,000 AI-linked job losses.
India, China and the Philippines recorded a net increase in AI-related employment, but new opportunities are concentrated in technology.
An Indian survey found that 55% of 651 IT companies reduced entry-level hiring, compared with 14% reducing senior recruitment.
India’s net IT-sector hiring fell from about 600,000 in FY22 to 140,000 in FY26, largely because of fewer campus placements and slower recruitment.
Financial services and technology accounted for most documented AI-related layoffs, while physical and highly interactive sectors remained less affected.
- Who
- Indian and Asian companies, IT workers, freshers and experienced professionals; the findings were reported by Nomura.
- What
- AI has generated more announced jobs than AI-linked losses, but companies are reducing entry-level recruitment while seeking more experienced workers.
- Where
- India and other Asian labor markets, including China, the Philippines and South Korea.
- When
- Nomura examined 69 company announcements made mostly between 2022 and August 2026; India’s hiring comparison covers FY22 to FY26.
- Why
- Companies are adopting AI to perform routine and lower-skilled tasks, reducing demand for some entry-level roles while increasing demand for AI-related and experienced professionals.
AI Opportunity View
Fresher Risk View
Overall employment
AI Opportunity View
AI has created more announced jobs than it has eliminated so far, with India recording a net increase in AI-related employment.
Fresher Risk View
The new jobs do not necessarily replace the jobs being lost and may not be accessible to younger workers.
Hiring patterns
AI Opportunity View
Demand is growing for experienced professionals with industry knowledge, management skills and AI-related capabilities.
Fresher Risk View
Companies are reducing campus placements and entry-level recruitment, creating a tougher path into the workforce for freshers.
India’s position
AI Opportunity View
India’s large pool of engineers and technology professionals could benefit from AI-related services, data annotation, linguistics and AI-focused IT work.
Fresher Risk View
Traditional IT services, back-office operations and entry-level roles are vulnerable because many involve tasks AI can perform more easily.
Key facts
- AI-related jobs announced
- About 131,000 across the Asian company announcements examined by Nomura.
- AI-linked job losses
- About 61,000 across the same announcements.
- Indian entry-level hiring
- 55% of 651 surveyed IT companies reduced entry-level recruitment.
- Indian senior hiring
- 14% of surveyed IT companies reported reduced recruitment for senior positions.
- Indian IT hiring
- Estimated net hiring declined from about 600,000 in FY22 to 140,000 in FY26.
- Documented layoffs by sector
- Financial services accounted for about 58% and technology for 30%.
- AI job concentration
- More than 90% of the AI-related jobs identified by Nomura were in technology.
Sources
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