India ranks second globally as AI-related job postings surge to 11.7% in September: Report

Recent data from global matching and hiring platform Indeed highlights that demand for skills in artificial intelligence continues to grow across India. In September, 11.7% of Indian job postings explicitly mentioned artificial intelligence in their job descriptions, up from 10.6% three months ago and 8.2% a year ago.

Callam Pickering, Indeed’s APAC Senior Economist said, “India ranks highly against other Indeed markets. Apart from India, only Singapore has a higher share of postings mentioning artificial intelligence. It’s clear that many employers across India have gone all-in on artificial intelligence.” A graph with blue and pink bars

Artificial intelligence opportunities are concentrated in the tech sector but are increasingly widespread. Almost 39% of data & analytics roles mention artificial intelligence, ahead of software development (23%), insurance (18%) and scientific research (17%).

Demand for skills in artificial intelligence is common across several engineering categories, led by industrial engineering (17%), mechanical engineering (11%) and electrical engineering (9.2%).

Overall hiring activity softens in September

In September, Indian job postings on Indeed fell 0.8%, the sixth monthly decline this year, to be 16.2% lower than a year ago. Indian job postings are 69% above pre-pandemic levels, but have fallen 22% since their peak in January 2023.

Every month, the Indian workforce gradually transitions towards more formal work arrangements. As the nation transitions, job creation across the formal sector will outpace overall employment growth nationwide. This transition is also why job postings in India have been stronger than other Indeed markets, both during the post-pandemic job boom and the subsequent slowdown.

Posting trends diverge across occupations

Over the past three months, job postings have declined in more than 90% of occupations. A handful of occupations, however, bucked that trend, led by community & social service and pharmacy which increased by 10.4% and 9.9%, respectively. Software development, up 0.4%, also grew modestly.

These gains though were more than offset by weakness in banking & finance where postings fell 25.5%, along with education & instruction (-22.2%), security & public safety (-20.9%) and physicians & surgeons (-20.9%).

Skill mismatches persist despite high demand

Job creation continues to soften, but job postings remain well above pre-pandemic levels. India’s formal sector continues to perform strongly, with more than enough jobs available to facilitate India’s ongoing economic transition. As AI reshapes hiring priorities, the demand for specialized, high-skilled professionals has intensified. Many employers are seeking candidates proficient in AI-related tools such as data analytics, and automation, skills that are not yet widely represented in the current talent pool.

India’s larger challenge is simply that there are often mismatches between the skills job seekers possess and the skills employers seek. Many companies in India are looking for highly skilled workers in tech or management, however, skill shortages remain common in India, particularly in higher-skilled segments.

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