From insurance to unicorns: AI and ML talent in high demand as Indian job market shifts gears

The Indian job market is seeing a strong shift toward technology-driven roles, particularly in Artificial Intelligence (AI) and Machine Learning (ML), reflecting both global trends and local industry growth.

According to the latest Naukri JobSpeak report, hiring for AI and ML positions surged 54% in August 2025, signaling a robust demand for specialized skills.

In contrast, the broader IT and software services sector saw a 6% decline in overall hiring, although IT unicorns recorded a 10% growth in recruitment.

White-collar professions such as managerial and administrative roles, which typically require higher education and specialized skills, experienced a modest 3% year-on-year growth in hiring.

This reflects a long-term trend: since 2020, non-IT sectors have been steadily contributing to job-market expansion in India, gradually reducing the dominance of traditional IT recruitment.

Several non-IT industries showed strong hiring momentum in August. Insurance led with a 24% increase, followed by hospitality at 22% and real estate at 18%.

Positive growth was also seen in BPO/ITES (17%), education (16%), oil and gas power (7%), retail (3%), and FMCG (2%).

Historically, sectors like insurance and education have shown consistent hiring increases over the past five years, driven by digital transformation and policy support.

However, some industries faced setbacks. Banking and financial services hiring declined 11%, telecom and ISP sectors fell by 13%, and the auto sector saw a 3% dip.

Fresher recruitment for candidates with 0–3 years of experience rose 7%, led by non-IT industries such as hospitality, real estate, and education.

This marks a continuation of the trend since 2022, when fresher hiring in IT started plateauing while opportunities in non-IT sectors expanded.

Among metropolitan cities, Hyderabad emerged as a standout performer, recording 10% overall hiring growth and an impressive 45% spike in recruitment by unicorn companies.

Over the last three years, Hyderabad has consistently attracted startup investments, positioning it as one of India’s fastest-growing tech and entrepreneurial hubs.

“In August, two trends stand out. One being that non-IT sectors continue to anchor job-market growth, a pattern visible over recent months,” said Pawan Goyal, Chief Business Officer at Naukri.

“The other, interestingly, is Hyderabad’s emergence as a hotbed of startup hiring, making it the leading metro in terms of overall job growth,” Goyal added.

Experts suggest that this shift reflects a broader structural change in India’s employment landscape, where demand for specialized tech skills, adaptability, and sectoral diversification is shaping both freshers’ and experienced professionals’ career paths.