Artificial intelligence is creating new employment opportunities in India, but entry-level hiring for freshers has weakened in 2026, according to a Nomura report. Companies are increasingly prioritising experienced professionals, making it more difficult for young people to secure their first job.
The changing trend in AI jobs has reduced entry-level opportunities for freshers in India. According to the Nomura report, demand for experienced professionals has increased while hiring at the entry level has declined. About 55% of IT companies in India reported a reduction in entry-level hiring, compared with a decline of only 14% in senior roles.
AI is often associated with concerns that large numbers of jobs could be eliminated. However, the Nomura report presents another aspect of the trend, stating that AI has created more employment opportunities than the number of jobs it has affected. Despite this, securing employment has become more difficult for freshers graduating from colleges in India and several other parts of Asia.
The issue is more visible in entry-level hiring than in the overall number of jobs. Companies are prioritising candidates who already have work experience and skills related to new technologies. This has made it more challenging for young people to begin their careers in the corporate sector.
The Nomura report points to a K-shaped trend in India's employment market. On one side, demand for experienced professionals and high-skill roles remains b, while opportunities for entry-level candidates are declining.
According to a survey by the Indian Council for Research on International Economic Relations, 55% of IT companies in India reported a decline in entry-level hiring. By comparison, the decline in hiring for senior roles was only 14%. The difference reflects a change in companies' hiring strategies.
Earlier, many companies recruited large numbers of freshers through campus placements and trained them according to their requirements. Now, many institutions and companies are prioritising candidates who have already worked with specific technologies, software or business processes.
The report also highlights another trend among companies. Instead of carrying out large-scale employee layoffs, companies are reducing the number of new hires. Nomura has described this as ‘Silent Firing’.
Under this situation, the number of employees working at a company does not decline suddenly, but opportunities for new employees become increasingly limited. This particularly affects young people looking for their first job after completing college.
According to staffing firm Xpheno, net hiring in India's IT sector declined from around 6 lakh in financial year 2022 to 1.4 lakh in financial year 2026. The decline has also affected campus recruitment.
AI has changed companies' requirements not only in terms of the number of employees but also in terms of the skills they seek. Automation and AI tools are increasingly handling several routine and repetitive tasks. Companies are therefore looking for professionals who can work with AI and have experience handling complex responsibilities.
As a result, experienced professionals are receiving relatively greater preference in the current job market. Freshers, meanwhile, increasingly need practical experience along with technical skills to secure employment.
The Nomura report indicates that viewing AI only through the lens of job losses does not present the full picture. AI is also creating new employment opportunities, while the path to a first job is becoming more difficult for young people entering the labour market.
