SightsIn Plus, in an insightful conversation with Sumit Kumar, Chief Strategy Officer, TeamLease Digital Apprentice, discussed the employment trends in 2025.
In this exclusive conversation with Sumit, our Editor-In-Chief, Romesh Srivastava, also discussed on PM Internship Scheme and skills gap.
Read below for insights and trends on employment for the upcoming year 2025.
Employment Trends 2025
In 2025, macroeconomic conditions are expected to directly impact employment trends.
The implementation of employment-linked incentives announced in the recent budget will likely influence employment numbers.
A key focus for the country will be the manufacturing sector, as efforts are made to establish India as a global manufacturing hub.
Consequently, an increase in job creation within the manufacturing sector is anticipated.
The growth of Global Capability Centers (GCCs) in India is another significant trend.
Favorable policies are attracting more GCCs, not just to metropolitan areas but also to tier-two and tier-three cities, leading to job creation beyond the metros.
The IT and BFSI (Banking, Financial Services, and Insurance) sectors have traditionally dominated GCCs.
However, manufacturing GCCs are also setting up operations in India, contributing to employment growth.
A concerted effort is being made to improve women’s participation in the labor market.
Currently at 37%, it is expected to exceed 40% by the end of the next financial year.
This increase is driven by a growing demand for female employees not only in core services but also in manufacturing assembly lines.
Technology, particularly AI, will play a crucial role in shaping employment.
There is no immediate concern about AI taking away jobs; rather, the focus is on how jobs will transition.
The workforce will need reskilling, especially for basic-level skill sets where AI will have a significant influence.
Employers are expected to undertake substantial reskilling initiatives for their existing workforce.
These are some of the employment trends to watch for in the coming years.
India is on a path of significant employment growth and transformation, driven by various macroeconomic factors, sectoral developments, and technological advancements.
PM Internship Scheme – Skills Gap
The PM Internship Scheme is a welcome initiative, especially given the alarming statistic from the economic survey indicating that 50% of graduates are unemployable.
This issue extends even to IIT graduates, with employability rates around 40%. The primary reason for this gap is the lack of soft skills despite their technical qualifications.
The PM Internship Scheme, along with the apprenticeship system, aims to make the youth more job-ready as they enter the labor market.
These schemes are beneficial for employers to address the skill deficit.
Industry and academia collaboration is vital for developing job-ready curricula that align with industry needs.
This collaboration is already evident in fields like IT and semiconductors, where theory and practical knowledge are combined to create job-ready talent.
The scheme has received an overwhelming response with the launch of its pilot project 1.25 Lakhs Internships last month in October 2024.
The widespread promotion and accessibility of the scheme have generated significant interest from organizations and the general public.
The scheme is anticipated to be highly successful.
Phase two of the scheme should expand its scope beyond graduates to include 10th and 12th-class students.
These students often end up in informal employment due to lack of exposure and acceptability from enterprises.
Extending the scheme to medium and smaller enterprises could provide more opportunities for internships and create a skilled workforce.
Sector-Wise Job Market in 2025
In 2025, significant job growth is expected in several sectors.
The electronics and manufacturing sectors are anticipated to generate a considerable number of jobs due to ongoing investments.
Manufacturing jobs are likely to surpass those in the services sector, though the BFSI (Banking, Financial Services, and Insurance) sector is also expected to see growth.
The IT sector will continue to expand, driven by Global Capability Centers (GCCs) setting up operations.
E-commerce, particularly in food delivery and logistics, will see job growth alongside infrastructure development investments.
Renewable energy is emerging as a key sector, with specialized jobs in maintenance and servicing, especially for solar panels.
While retail may not see significant growth, there will still be job opportunities. The healthcare sector will continue to expand.
Studies indicate that manufacturing jobs will grow by almost 100%, compared to a 35% growth in the services sector over the next three years.
Digital skills, such as programming, data science, data architecture, internet technologies, and security, will be in high demand.
These skills will be required in both IT and manufacturing as organizations prioritize digitization.
The sectors expected to provide the maximum jobs in 2025 include manufacturing, electronics, BFSI, IT, e-commerce, logistics, renewable energy, retail, and healthcare.
The focus on digitization will drive demand for digital skills across these industries.
Additionally, the growth of GCCs in India will create more employment opportunities.
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