India Inc Slashes Fresh Graduate Hiring, STEM Freshers Bear the Brunt
India's corporate sector is significantly dialing back on hiring fresh graduates, with a pronounced impact on those from science, technology, engineering, and mathematics (STEM) backgrounds. This strategic shift reflects companies becoming more selective and increasingly focused on acquiring industry-ready talent that can contribute immediately.
Sharp Decline in STEM Fresher Hiring Numbers
According to a comprehensive study by staffing and recruitment firm TeamLease, reported by ET, around 200,000–220,000 STEM freshers were hired in FY25. However, this number is projected to plummet to just over 150,000 in the current fiscal year. This represents a substantial reduction and underscores a broader trend in hiring strategies.
The data reveals a consistent downward trajectory. STEM fresher hiring had already fallen to 230,000 in FY23 from 400,000 a year earlier, and it dropped further to 150,000 in FY24. Neeti Sharma, CEO of TeamLease Digital, noted that only 70-74% of firms are planning fresher hiring this fiscal, indicating heightened selectivity in recruitment processes.
Companies Prioritize Job-Ready Talent with Advanced Skills
Industry experts and startup founders emphasize that the bar for entry-level hiring has been raised considerably. Fresh graduates are now expected to possess practical skills and be proficient with contemporary technologies. Firms are specifically looking for candidates who can work seamlessly with cloud platforms, manage data pipelines, implement automation, and utilize AI tools from day one.
This preference for skills over sheer numbers is evident across various sectors. Companies are moving towards leaner, more skilled teams rather than maintaining large workforces. This approach allows for greater efficiency and agility in a competitive market environment.
Startups Embrace Lean Models While Focusing on AI Talent
Many startups are at the forefront of this trend, adopting leaner operational models while continuing to hire selectively in high-demand areas. A notable example is Leverage Edu, an edtech and study-abroad firm, which has reduced its headcount to approximately 900 employees from a peak of over 1,400 in the last two to three years.
Akshay Chaturvedi, founder of Leverage Edu, explained that the company's focus remains on bringing in individuals who are mission-aligned, high on integrity, and obsessed with doing the right thing. He emphasized that DNA and culture are paramount. Additionally, the company is actively strengthening its AI talent pool while hiring senior business development leaders across various markets.
Salaries Reflect Shift Towards Skilled Hiring
The changing hiring landscape is also mirrored in salary trends at the entry level. Within STEM roles, software engineering and data profiles have witnessed the highest salary growth. According to the TeamLease study, salaries for these positions rose to Rs 5 lakh annually in 2025, up from Rs 3.5 lakh in 2020.
Overall, the average annual salary for STEM freshers increased to around Rs 4 lakh in 2025, compared to Rs 3 lakh in 2024. Sharma attributed this change primarily to a reset in entry-level tech hiring, moving away from volume coding roles to AI-adjacent, data-first profiles. This shift underscores the growing demand for specialized skills in emerging technologies.
Recovery in Hiring Sentiment and Future Outlook
Despite the overall decline, there are positive indicators. Sharma mentioned that hiring improved by 15–18% last fiscal year, supported by a recovery in hiring sentiment and escalating demand for AI and cloud-related skills. This suggests that while companies are reducing overall fresher intake, they are willing to invest more in candidates with the right expertise.
The trend highlights a fundamental transformation in India's job market, where adaptability and advanced technical competencies are becoming crucial for fresh graduates. As companies navigate economic uncertainties and technological advancements, the emphasis on quality over quantity in hiring is likely to persist, reshaping career pathways for STEM graduates nationwide.
