India Inc is holding off on hiring fresh graduates, especially those with science, technology, engineering and mathematics (STEM) backgrounds, as companies become more selective and focus on industry-ready talent.According to a study by staffing and recruitment firm TeamLease, around 200,000-220,000 STEM freshers were hired in FY2015, but the number is expected to decline to a little over 150,000 in the current fiscal year, reported ET.This trend highlights a change in hiring strategy, with companies preferring smaller, efficient teams over larger workforces.
companies look for job ready talent
Industry experts and startup founders told ET that fresh graduates are now also expected to work with cloud platforms, data pipelines, automation and AI tools, raising the bar for entry-level hiring.“We see that only 70-74% of companies are planning to make new hires this financial year as companies are more selective in their selection,” said Neeti Sharma, CEO, TeamLease Digital.Many companies, especially startups, are moving toward smaller teams, while continuing to hire selectively in areas like AI and data analytics.
Startups go lean, focus on AI
Edtech and study-abroad firm Leverage Edu has reduced its headcount from more than 1,400 to about 900 in the last two to three years.“Our focus is on bringing in people who are mission-aligned, have high integrity and are passionate about doing the right thing – DNA/culture is everything,” said Akshay Chaturvedi, Founder, Leverage Edu, as reported by ET.He said the company is focusing on strengthening AI talent by hiring senior business development leaders across different markets.
There has been a huge decline in the number of appointments
According to the TeamLease study, STEM fresher hiring fell to 230,000 in FY2013 from 400,000 a year earlier, and to 150,000 in FY24.Sharma said hiring has improved by 15-18% over the last financial year, supported by improving hiring sentiment and growing demand for AI and cloud-related skills.Entry-level salaries also reflect the shift toward skilled hiring. The study said that within STEM roles, software engineering and data profiles saw the highest salary increase, rising from Rs 3.5 lakh in 2020 to Rs 5 lakh annually in 2025.The average annual salary of STEM freshers to increase from Rs 3 lakh in 2024 to around Rs 4 lakh in 2025.“This shift is primarily due to the reset in entry-level tech hiring, which is moving from volume coding roles to AI-adjacent, data-first profiles,” Sharma said.The preference for skills over numbers is evident in all sectors.
