Tech-related hiring in India at all-time low, software engineers hit hardest: Study

Tech-related hiring in India has hit an all-time low, with software engineers the worst-affected group, according to a study cited by India Today. The finding crystallises what job-seekers and placement officers at engineering colleges have been experiencing on the ground — a sharp, sustained contraction in the demand for technical talent that shows no immediate signs of reversing.

The causes are multiple and reinforcing. Large Indian IT services companies have been cautious about headcount expansion as clients in the US and Europe tighten discretionary technology spending. At the same time, the rapid adoption of AI-powered coding tools and automation has reduced the number of entry-level and mid-tier software engineering roles that companies need to fill. Startups, which drove a hiring boom in earlier years, have also pulled back sharply following a funding winter that began in 2022 and has yet to fully lift.

Software engineers — the traditional backbone of India's technology workforce — are disproportionately affected. Roles in areas like basic coding, testing, and routine application development, which once absorbed hundreds of thousands of graduates annually, are contracting most visibly. More specialised roles in AI, machine learning, and cybersecurity are somewhat more resilient, but they represent a far smaller share of the overall market.

The findings arrive at a difficult moment for India's higher education system, which produces a large number of engineering graduates each year. Unless the hiring cycle turns or new sectors absorb displaced talent, the gap between the supply of technically trained graduates and available jobs is set to widen further.