IT sector aspirants are navigating a shrinking job market with tech giants and mid-sized firms pivoting away from mass campus hirings to selective recruitment of digital skills in the AI age.

This is borne out by data from hiring solutions platforms that are reporting a four-year high in the sector’s unemployment rate.

According to Instahyre, the sector-wide net employment change stood at just 1.8 per cent, while urban unemployment for IT professionals moved from 6.4 per cent in Q2 FY25 to 7.2 per cent by October 2025—its highest since 2021.

“Overall, we saw 24 per cent of IT employers reporting workforce reductions in response to deal pipeline slowdowns and margin stress, but 40 per cent planned targeted hiring for cloud migration, cybersecurity, and GenAI pilots,” said Sarbojit Mallic

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