India's job market shows resilience amid global slowdown: Bain report

India's job market demonstrated resilience with a modest 5% YoY decline in Q2 job postings, outperforming other major economies amid a global hiring slowdown, according to a Bain & Company report. AI-related roles, however, saw continued demand.

India recorded a relatively modest 5 per cent year-on-year decline in job postings during the second quarter, demonstrating greater resilience than several major economies amid an overarching global hiring slowdown, according to a report by Bain & Company.

The latest report titled 'Global Job Market Trends' showcased that second-quarter hiring demand contracted globally across major territories, business functions, and sectors, while demand for artificial intelligence capabilities expanded.

India's Resilience Amid Global Contraction

"India was among the markets that fared better, with job postings down 5% year over year, compared with steeper declines across several other major markets," the Bain & Company report stated.

Among the top ten tracked markets, France experienced the sharpest year-on-year drop at 40 per cent, followed by Brazil at 39 per cent and the Netherlands at 33 per cent. Postings fell 27 per cent in Germany and 23 per cent in the United States. Alongside India, milder reductions occurred in Canada at 4 per cent, Japan at 7 per cent, the United Kingdom at 9 per cent, and China at 10 per cent.

A Two-Speed Labor Market Emerges

The report noted that the figures signal structural divergence across employment segments.

"The data points to a two-speed labor market, with broad weakness in many sectors and functions coexisting with continued demand in AI-adjacent roles," the report noted.

Decline in Traditional and Entry-Level Roles

Traditional core corporate functions experienced consistent double-digit contractions. Research, design, and development registered the steepest drop at 37 per cent, while sales and marketing both fell 32 per cent. Strategy and analytics decreased 27 per cent, information technology dropped 25 per cent, and finance declined 24 per cent. In contrast, engineering dropped 7 per cent and general administrative roles declined 13 per cent.

Junior and entry-level positions, which constituted 95 per cent of all second-quarter postings, dropped 11 per cent year on year. This marked a steeper decline compared to the 6 per cent fall observed in the first quarter.

Growth in AI and Specialized Sectors

Contrasting the broader downturn, artificial intelligence postings expanded to approximately 351,000 openings globally in the second quarter of 2026. This volume represented a 60 per cent rise compared to the second quarter of 2025 and a 12 per cent gain over the first quarter of 2026, though AI openings still accounted for a small fraction of gross hiring volume.

Select specialised sectors also recorded positive growth. Venture capital and private equity hiring climbed 47 per cent year on year, capital markets rose 26 per cent, computer and network security expanded 19 per cent, and defense and space gained 13 per cent.

"The data points to continued hiring in targeted capabilities even as more general demand contracts," the report noted.

The report mentioned that hiring demand is concentrating within specialised competencies, requiring employers to adjust recruitment plans to match evolving skills requirements. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)