The big Indian job market: Demand for freshers with bachelor's degrees increases 71%; tech talent preferred
In 2024, 11% of freshers hired across the country had no formal degrees, a rise from 4% in the previous year.
By Anoushka Caroline Williams Published on 15 Jun 2024 6:49 AM GMT
Hyderabad: Indian companies are increasingly hiring freshers who lack formal degrees, according to a new report by foundit (previously Monster).
In 2024, 11% of freshers hired across the country had no formal degrees, a rise from 4% in the previous year.
Demand for Fresh Graduates on the Rise
The report highlights a substantial increase in the demand for fresh graduates. Freshers with bachelor's degrees saw a rise in demand from 59% in 2023 to 71% in 2024. Conversely, the hiring of post-graduates has dropped considerably, from 37% in 2023 to 18% in 2024.
Focus on Skills over Academic Credentials
"We're seeing a clear trend where startups and other companies are increasingly valuing skills over just academic credentials," said Sekhar Garisa, CEO of foundit. "This shift means that young professionals need to focus on acquiring relevant skills to stand out in the competitive job market. To bridge this gap, there's a pressing need for better learning and development initiatives within our educational system."
Top Industries and Job Functions for Freshers
Startups in the IT services and Internet industry are leading in fresher hiring, with 23% and 22% of jobs directed to new graduates, respectively. The data shows that in May 2024, most freshers were hired by companies based in metro areas, with Delhi NCR (21%) topping the list, followed by Bengaluru (14%), Mumbai (8%), Chennai (8%), Pune (8%), and Hyderabad (8%).
The top functions in demand for fresher jobs included software and hardware roles, accounting for the highest share at 32%. Other significant functions included sales and business development (14%), HR and admin (8%), healthcare (8%), and marketing and communications (8%).
Shifts in Hiring Strategies
"IT companies, particularly in the hardware and software sectors, are showing intent to hire freshers, signaling a shift in hiring strategies in India. This trend is largely driven by ongoing restructuring efforts within the industry, focusing on adopting new technologies, optimizing costs, enhancing innovation, and ensuring scalability," noted the report.
Salaries for Freshers
According to foundit's data, the average fresher salary in various cities for May 2024 was as follows:
- Delhi NCR: ā¹3.99 LPA
- Bengaluru: ā¹4.16 LPA
- Chennai: ā¹3.84 LPA
- Pune: ā¹3.8 LPA
- Kolkata: ā¹3.39 LPA
- Coimbatore: ā¹3.5 LPA
Skills in High Demand
The Indian IT, recruitment, and BFSI (banking, financial services, and insurance) sectors are particularly seeking tech talent skilled in cloud computing, data science, artificial intelligence (AI), and cybersecurity.
āThis shift towards skill-based hiring represents a significant change in the Indian job market, emphasizing the need for continuous learning and adaptation among new professionals,ā said Garisa.
