India hiring rises 15% in 2025 as AI drives job market expansion: FOUNDIT report

Mumbai: Hiring activity rose 15 per cent year-on-year and 5 per cent sequentially in December 2025, indicating the job market is moving from a cautious recovery phase to measured expansion, a report said on Tuesday. Artificial intelligence emerged as the defining hiring force of the year, with 2,90,256 AI-linked roles posted in 2025.

India's job market closed 2025 with renewed confidence, with hiring activity rising by 5 per cent month-on-month and 15 per cent year-on-year, signalling a clear shift from cautious recovery to measured expansion, according to the Insights Tracker report by foundit (formerly Monster APAC and ME).

This momentum is set to accelerate further, with AI hiring projected to grow 32 per cent year-on-year in 2026 to nearly 3.8 lakh roles, the report added. "2025 was both a year of expansion and discipline in hiring. AI is no longer experimental; it is central to workforce planning. In 2026, hiring will be increasingly skills-led, mid-career-focused, and spread across both tier I and emerging tier II talent hubs.

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"This convergence of core industries and AI adoption will continue to position India as a global talent powerhouse," foundit Chief Product and Technology Officer Tarun Sharma said. The foundit Insights Tracker (fit) report is a comprehensive monthly analysis of online job posting activity conducted by foundit.in.

According to the report, IT-Software and Services held the largest share of AI jobs at 37 per cent, followed by BFSI (15.8 per cent) and manufacturing (6 per cent). BFSI recorded 41 per cent year-on-year growth, while healthcare and pharmaceuticals (38 per cent), retail (31 per cent), logistics (30 per cent), and Telecom (29 per cent) posted strong gains, it stated.

When it came to geographies, Bengaluru retained leadership with a 26 per cent share of AI jobs (32 per cent) year-on-year, it said. Hyderabad recorded the fastest tier I growth at 35 per cent, while Jaipur (40 per cent), Indore (38 per cent), and Mysuru (36 per cent) led tier II gains, the report added.