Hiring Woes: 80% of employers face talent shortage; South India hit hardest, says survey

Hyderabad: Despite the highest hiring demand globally (53%), 80 per cent of employers in India are struggling to find the right talent they need. A maximum talent shortage was noticed in South India.

According to a survey with the data, this trend has persisted since 2022. It is more than the global average, where 74 per cent of employers are reporting talent scarcity (the global figure remains unchanged over 2024).

The analysis of hiring trends is from the latest ManpowerGroup (NYSE: MAN) Talent Shortage Survey. Employers In India are expecting cautious hiring in the first quarter of 2025, as ongoing talent shortages continue to hinder recruitment efforts.

3,000 employers in India participated in survey

The survey collected data from more than 3,000 employers across the four regions of India, seeking inputs on the talent shortages they are facing, how they plan to cope with attrition in their efforts to retain talent and their HR priorities in 2025.

ManpowerGroup also interviewed 40,413 employers in 42 countries. The fieldwork was completed between October 1 and 31, 2024, in all markets.

The survey highlighted that no region is immune to shortages and talent scarcity remains a defining feature of the global labour market.

Some of the highlights of the survey are:

- 80% of employers report difficulty finding skilled talent, remaining consistent in the last three years, and increasing 86% from a survey in 2021.

- To find, attract and recruit talent, employers are offering more upskilling and reskilling opportunities to current employees (39%), as they aim to reduce recruitment costs by promoting internal mobility. Increasing temporary recruitment is favoured by only 22 per cent of employers as they show a preference for targeting new talent pools (38%) and increasing wages (29%).

- Talent shortages are most prominent in South India (85%) and have remained consistent with last year.

- When asked about Artificial Intelligence (AI), employers cite training staff, finding qualified talent, and offering more location flexibility (hybrid, remote) as the top challenges to fully leverage the technology

- Company size plays a notable role in talent acquisition challenges, with large organizations (250-999 employees) and very large enterprises (1,000-4,999 employees) reporting an 82 per cent difficulty in filling positions, while the largest organizations (5,000+ employees) face slightly fewer challenges at 80 per cent.

Employers prioritising upskilling

“The persistent talent shortage, with 80 per cent of organisations struggling to fill roles in 2025, underscores the urgent need for collective action,” said Sandeep Gulati, managing director, ManpowerGroup India and Middle East.

“Industries like IT, energy and utilities are feeling the greatest strain, with demand for specialised skills like data and IT continuing to rise. In South India, where the shortage is especially pronounced, the pressure on medium and large enterprises is significant. Employers are increasingly prioritising upskilling strategies to bridge this gap, reflecting a shift towards sustainable solutions over short-term measures like wage increases. Addressing this challenge will require a robust partnership between businesses, governments and educators to build a future-ready workforce,” said Sandeep.

According to a public note, ManpowerGroup is the leading global workforce solutions company that helps organisations transform in a fast-changing world of work by sourcing, assessing, developing and managing the talent that enables them to win.