Uptick in India’s job market needs to be consolidated

The rising concerns over overall unemployment percentage and the frequency of mass layoffs in India’s corporate world notwithstanding, a whiff of fresh air comes in the form of the latest available data that should particularly delight the Union and state governments. They present a positive upward trend, albeit only marginal, which, still is cause for celebration. Incidentally, this ‘turnaround’ is being noticed not only on the national landscape, but also in Telangana. The country’s job market shows a steady revival with 11 per cent hiring intent for 2026, while Telangana has recorded considerable improvement on this front. Its unemployment rate has declined between July and September, the second quarter of the 2025-26 fiscal.

Unlike predictions and projections by all and sundry that can be dismissed as being government-influenced figures, a sense of genuineness can be established from the fact that the data with positive indicators has been released by the Union Ministry of Statistics and Programme Implementation (MoSPI). Telangana’s unemployment rate, which stood at 6.9 per cent during the April-June quarter, is now at 5.7 per cent for the July-September quarter. The state government can take delight at this improvement, although, in hindsight, its unemployment rate remains a shade higher than the all-India average of 5.2 per cent during July-September.

Of course, the healthy indication on the national firmament is largely due to the vibrancy that is being seen in the banking, financial services and insurance (BFSI) sector. Having placed thrust on expansion of its staff strength, after remaining guarded for quite some time, BFSI has paved the way for a likely 11 per cent hiring growth on the job market front in its entirety. The upward trend also applies to India Inc’s hiring. Taking cue from BFSI’s moves, other sectors have also started reinforcing their workforce strength, which is a big boost to the economy. The sectors include core industries like metal and mining, power, utilities, steel, and cement, which have risen by an equally encouraging 12 per cent.

These, incidentally, are the findings of a collaborative study by Taggd and the Confederation of Indian Industry (CII). Their report indicates that unlike the trend that prevailed over the past few years, especially post-Covid, there has been a gradual shift, nay transition, as regards hiring of proven talent. Today, floodgates are being thrown open for seasoned professionals. Those with 6-15 years of experience are taking the lion’s share of the overall 55 per cent of this year’s hiring, which in the previous year was around 39 per cent. Of course, there are ample opportunities for the novices with less than five years of experience.

Noticeably, Tier-2 cities, not to be found lagging, are joining the big league by accounting for 32 per cent of the projected jobs in 2026. Many firms are trying to grab freshly emerging regional talent, which makes economic sense to the employer, who can not only save on costs but also grab those endowed with skill sets. The shift from recovery to reinvention, thanks to digital acceleration, has come as godsend to regional talent. Of course, there is a noticeable demand for individuals skilled in GenAI, cloud computing, and cybersecurity.

Although a NITI Aayog report states that Telangana has pipped Karnataka in the service sector, which churns out high economic output, Telangana cannot afford to ignore the plight of those from other segments like gig workers, whose monthly income is meagre, comparatively speaking. Hence, it is pertinent that the State Government focuses on sectoral growth and consolidates the current buoyancy.