India’s Job Market: Freshers Face Challenges, Short Tenures Rise

India’s organized job market is becoming tougher for freshers, with a noticeable rise in shorter job tenures, according to the recent FY26 Pulse Report by staffing firm Quess Corp. This shift indicates a growing preference among employers for experienced professionals, especially those with specialized skills.

The report highlights a significant decline in hiring for new graduates within Global Capability Centers (GCCs). Companies are now actively seeking “deployment-ready” talent, signaling a strategic change in recruitment priorities.

Experienced Talent Takes Center Stage

Employers are increasingly looking for candidates who bring between four and ten years of experience to the table. This demand is particularly strong in emerging fields like artificial intelligence and data roles, where specialized expertise is highly valued.

The surge in demand for specific skills is evident in the generative AI sector. Mid-career professionals, with their established experience, are filling a substantial portion of these new, high-skill positions.

Key Workforce Figures

• GCC fresher hiring dropped from 28% in 2024 to 15% in 2025.
• Overall GCC hiring accelerated to 12-14% quarter-on-quarter in Q4FY26, up from 4-6% in Q3FY26.
• GCCs accounted for nearly 27% of India’s IT hiring demand in 2025.
• Generative AI hiring increased by 178%.
• Professionals with four to ten years of experience made up approximately 65% of the demand for AI roles.
• Median job tenure for workers aged 15-29 was just 13 months, compared to 20 months for those aged 30-60.
• Half of younger workers (15-29) exited employment within 13 months.

Challenges for Young Workers

Younger workers, particularly those aged 15-29, are experiencing notably shorter job tenures. This trend of short-cycle employment is influenced by factors like project-based staffing and the seasonal nature of some roles.

The transition from education to employment continues to present significant hurdles for India’s youth. Many face difficulties entering and staying in the workforce, reflecting broader structural challenges within the labor market.

Youth Unemployment and Participation Gaps

The report underscores persistent issues in youth employment and workforce participation. Urban youth unemployment remains high, and there’s a stark disparity in labor force participation between young men and women.

A quarter of India’s youth population is currently not engaged in education, employment, or training. Addressing the gaps in female workforce participation, where economic necessity often drives early entry, remains a critical area for improvement.