The world of work is undergoing a profound transformation at a rapid pace. The surge in AI adoption, along with the explosive rise of freelancing, gig opportunities and digital entrepreneurship, is fundamentally redefining career paths and reshaping the foundations of the global workforce.
The latest India Skills Report affirms that India’s gig workforce, currently estimated at over 12 million, is projected to surpass 23 million by 2030. Project-based hiring has grown nearly 40 per cent, indicating the mainstreaming of flexible, skill-centric employment.
According to the report, hiring in India is being defined by sustained growth, AI-led recruitment and hybrid talent strategies – all of this signalling a mature, digitally integrated labour market ready for the next phase of AI-driven transformation.
The report shows some interesting findings. While the top employability charts remained strong with Computer Science (80 per cent) and IT (78 per cent), MBA employability slipped to 72.76 per cent from 78 per cent in the previous year. The industry has shown more appetite for an engineering-and-management combination than for a simple MBA. There is significant change in employer priorities. Organisations across sectors such as BFSI, retail and logistics are integrating AI, cloud and analytics, driving intense demand for Computer Science and IT talent.
In 2025, over 90 per cent of large IT firms in India adopted cloud-based HR and workforce management systems, while similar adoption across manufacturing, BFSI, healthcare and retail reached 70 per cent, marking a fundamental modernisation of human capital operations. Platforms such as Darwinbox, PeopleStrong, SAP SuccessFactors, Oracle HCM Cloud, Workday, Zoho People, Keka and GreytHR now anchor enterprise-scale digital HR ecosystems. These systems not only streamline payroll and attendance but also enable predictive analytics, AI-powered attrition modelling and continuous employee engagement, turning HR from a support function into a strategic driver of productivity.
The clear message from the report is that AI is rapidly reshaping the job market, and India has yet to catch up.
India’s National Education Policy (NEP) 2020 should quickly adapt and make the necessary changes to respond to this emerging need. The NEP emphasises AI integration, but some experts feel that implementation remains inconsistent.
Youth unemployment in India is close to 16 per cent. There is an apprehension that many lack the skills required for present-day jobs. The report also showed that close to 56.35 per cent of graduates are employable. Rapid advancements in AI are creating strong headwinds for the employment market, accelerating concerns over significant job losses. It was reported that India’s working-age population would increase by at least 12 million per year until 2030. The country needs to create about 10 million jobs every year until 2030 to utilise this surplus.
Another significant finding from the report is the improvement in vocational education outcomes. ITI graduates recorded 45.95 per cent employability, and polytechnic diploma holders stood at 32.92 per cent.
“The India Skills Report has helped us identify key gaps in freelancing and AI readiness. The Global Employability Test empowers students to assess their relevance in a workforce increasingly shaped by gig roles and innovation,” stated Partha Pratim Lahiri, Registrar, Maulana Abul Kalam Azad University, West Bengal.
India is currently in a trial phase, collaborating with multinational corporations (MNCs) to create educational modules designed for students and entrepreneurs. Several countries are going all out on reskilling to make their workforce AI compatible. It has been reported in the media that China is building AI-powered cloud schools and smart manufacturing hubs. Finland and South Korea have introduced AI coursework into their national curricula.
India needs to establish widespread programmes to teach artificial intelligence skills and critical thinking to its people, addressing the risk of technological job displacement for millions. This institutionalisation of AI fluency is essential to future-proof the workforce and society at large. Similarly, the corporate sector should invest more in reskilling their employees to make them future-ready.
Finally, active policy adjustments could allow India to harness AI effectively, leveraging its demographic dividend for maximum benefit.