Industries Reducing Hiring in 2025: What Industries are Likely to Reduce Hiring?

Let’s look at the Industries Reducing Hiring in 2025!

As we head towards 2025, some changes in global economics, technology, and what people want are shaking up the job market. Some industries are on the rise, while others are struggling with less demand, automation, and changes in the economy.

For Indian professionals and job seekers, catching onto these trends is super important to stay competitive in the job scene.

Let’s take a look at which industries are likely to cut back on hiring in 2025 and what’s driving those decisions.

Overview of the Indian Economy.

Looking ahead, the global economy is starting to pick itself up after some rough times. With inflation starting to chill out, it looks like things are shaping up for a more positive economic vibe worldwide.

When it comes to the global stage, things are looking up as the battle against inflation seems to be going in the right direction. After hitting 9.4% in late 2022, it’s expected to drop to around 3.5% by the end of 2025, which is a bit lower than the usual levels we saw before the pandemic. This drop opens the door for central banks to ease up on their money policies, giving a boost to economies all around.

As far as growth goes, we can expect around 3.2% growth globally in both 2024 and 2025, with the US leading the way at about 2.5%. Europe, on the other hand, is likely to lag behind with just 0.8% growth due to trade issues and possible new tariffs. Emerging markets are on a steady path too, but some low-income countries might struggle because of ongoing global conflicts.

Shifting focus to India, things look bright even though growth rates might slow a bit. The Asian Development Bank is forecasting a GDP growth of 7% for the fiscal year 2024, which might tick up to 7.2% in the following year. This growth is backed by better agricultural conditions, which should boost spending in rural areas, helping the overall economy.

Yet, there are challenges on the horizon. The IMF predicts India’s growth rate might dip to about 6.5% by 2025 as we reach a more normal post-pandemic phase. This slowdown is due to factors like waning pent-up demand and ongoing uncertainties in the global economy.

The Indian government is working on getting its finances in check, which should help stabilize debt and strengthen the economy. Central government debt is set to decrease from 58.2% of GDP in 2023 to about 56.8% in 2024. There’s also an expectation that consumer inflation might tick up a bit because of food prices, but if farming output improves enough, the Reserve Bank of India could ease some of its monetary policies.

While the outlook is encouraging for both the global economy and India, some challenges still linger. Ongoing geopolitical issues could mess with supply chains and commodity prices, and even though inflation is on the decline, many sectors might still face price hikes that can affect how much people spend. Plus, potential tariff increases from major economies could complicate trade, hitting emerging markets like India especially hard.

In summary, as we get ready for 2025, it looks like both the global economy and India are set for growth, but they’ll have to navigate some tricky challenges along the way. By focusing on resilience and smart policies, there’s a good chance for strong economic performance that benefits not just individual countries but the entire world.

 

RELATED: What are the Most Common Resume Mistakes that Lead to Job Rejection?

5 Industries Reducing Hiring in 2025.

Here are five well-known industries reducing hiring in 2025;

1. Information Technology (IT) and IT-Enabled Services (ITES).

This is the largest section facing the risk of reduced hiring due to the rise of AI.

1. Rise of Automation: Tools like AI and Robotic Process Automation are taking over basic coding and testing tasks. Routine jobs like fixing bugs and simple software updates are now mostly done by AI, which means less need for junior developers.
2. Shift in Outsourcing Trends: India used to be the go-to country for IT sourcing but times are changing. Countries like Vietnam and the Philippines are stepping up as cheaper options for IT outsourcing, especially for tasks that don’t require a ton of specialization. As companies look to mix up their vendor options, India’s hold on the market is starting to slip.
3. Overproduction of IT Graduates: India cranks out 1.5 million engineering graduates every year, but the job market can’t keep up, which is leading to a saturation of job seekers.
4. AI as a Double-Edged Sword: AI creates high-level jobs in development and deployment, meaning it creates job opportunities for those involved in AI integration and automation. This is great but it also puts mid-level positions, like system admins and basic coders, at risk.
5. Budget Cuts by Global Clients: With tightening budgets, companies in the US and Europe, which are big clients for Indian IT firms, are cutting back on their outsourcing contracts. They opt for developers in other developing countries in Africa, Vietnam, and the Philippines.
6. Shift Toward Cloud Services: Firms are transitioning to cloud-based setups, which lessens the need for hands-on IT maintenance jobs.
7. Statistical Backing: According to Nasscom, mid-level IT roles in India could see a decline of 15-20% by 2025.

2. Traditional Manufacturing.

The Manufacturing industry in India is one of India’s biggest markets as it thrives on cheap labor. This industry is also feeling the heat from automation and global competition.

1. Adoption of Industry 4.0: Manufacturers are opting for the use of automation, IoT, and robotics in manufacturing, especially in urban factories, reducing the need for manual labor for repetitive tasks.
2. Rising Global Competition: Countries like China and Vietnam are keeping costs lower, pushing Indian manufacturers towards automation.
3. Government Policies: While initiatives like Make in India aim to boost manufacturing, they mostly target high-tech sectors, leaving traditional jobs at risk.
4. Labor Costs: Wages are rising in India, making it more expensive to rely on manual labor compared to automating processes. Manufacturers would rather buy a machine to do the work than pay monthly wages.
5. Supply Chain Disruptions: Events like the COVID-19 pandemic have made companies rethink their operations, focusing on automation to cut down human dependency.
6. Focus on Green Manufacturing: With sustainability goals, there’s more money being put into energy-efficient machines that are replacing human workers. An ICRIER report found a 30% drop in unskilled manufacturing jobs between 2022 and 2024, and this trend is likely to keep going. Automakers like Maruti Suzuki are increasingly going for automated assembly lines.
7. Global Shift in Demand: Export orders are dwindling as India deals with tariffs and trade restrictions in important markets like the EU.
8. Rise of Contractual Labor: Even when companies are hiring, they prefer short-term contracts instead of permanent positions to cut costs.

3. Retail.

Retail is going through a massive change thanks to the surge in e-commerce and shifting shopping habits.

1. Growth of E-Commerce Giants: Companies like Amazon and Flipkart are heavily investing in warehouses and delivery services rather than physical stores, which means fewer in-store staff are needed.
2. Pandemic Acceleration: The pandemic pushed even older shoppers to get on board with online shopping, leaving malls and local retailers in the dust. Its easier to just order rather than going to the market or stores regularly.
3. Consumer Behavior: Younger folks are all about convenience and the deals they find online, which is causing foot traffic to drop in physical stores.
4. Technology in Retail: Self-checkout kiosks, digital inventory systems, and AI shopping assistants are taking over traditional roles.
5. Consolidation in the Industry: Big retail chains are buying out smaller businesses, leading to job redundancies.
6. Changing Real Estate Dynamics: Sky-high rental rates for retail spaces are making it hard for brick-and-mortar stores to thrive.
7. Focus on Logistics: Retail hiring is now more focused on delivery and warehouse jobs instead of store positions. Physical retail hiring fell by 12% in 2023, according to a study by the Retailers Association of India.
8. Rise of Direct-to-Consumer (D2C) Brands: These brands are all about online sales, cutting out physical stores entirely.
9. Global Influence: International brands entering India often bring their tech-savvy business models, reducing the need to hire locally.

4. Banking and Financial Services.

The financial scene is shifting from the old-school banking model to a more digital and fintech vibe.

1. Digital Banking Takeover: Apps like Paytm and Google Pay are taking over simple banking tasks, which means there’s less need for hiring at bank branches.
2. Automation in Processes: Things like loan approvals and customer service are getting handled by AI more and more, cutting down the need for actual people in the mix.
3. Branch Closures: You’ll notice fewer bank branches in cities because folks are leaning towards online banking instead.
4. Rise of Fintech: Fintech startups tend to run on a leaner model, often with way fewer employees than the big banks.
5. Cost-Cutting Measures: To stay in the black, banks are merging branches and trimming their workforce.
6. Focus on Specialized Roles: Hiring is shifting toward roles in cybersecurity and data analysis, leaving generalist positions a bit out to dry.
7. Global Impact: International banks with a presence in India, like HSBC and Citibank, have pulled back a lot on their physical operations. Data from the RBI shows a 10% drop in urban branch jobs between 2021 and 2023.
8. Changing Customer Expectations: Millennials and Gen Z want 24/7 access to banking online, rather than having to hit the branch.
9. Technological Disruption: Blockchain is shaking things up even more by cutting down back-office jobs related to transactions.

5. Media and Entertainment.

The media world is used to changes, but 2025 could bring even bigger challenges.

1. AI in Content Creation: Tools like ChatGPT and video generators are starting to replace jobs like scriptwriters and other basic content creators.
2. Decline of Traditional Media: Print and TV are losing their audiences as people flock to digital platforms like YouTube and Instagram.
3. Advertising Shift: Brands are now spending more on ads on social media than on traditional media, which is hitting revenues hard.
4. Consolidation of Media Houses: Smaller media outlets are getting snapped up by bigger companies, leading to job cuts.
5. Freelance Economy: Businesses are leaning more towards hiring freelancers for specific projects rather than keeping full-time staff.
6. Changing Consumer Habits: Short-form content, like reels and TikTok videos, is all the rage now, which means fewer people are needed to churn out content.
7. Global Competition: Services like Netflix and Disney+ Hotstar are bringing global shows to India, which is reducing the need for local production.
8. Government Regulations: Tighter rules on media content are pushing companies to downsize.
9. Tech Platforms Taking Over: Companies like Google and Meta are dominating digital advertising, which means traditional media houses are getting squeezed. According to EY, it’s estimated that 15-20% of traditional media jobs could vanish by 2025

What’s Driving These Trends?

Here are few factors driving the hiring trends;

Tech Changes:
Work is getting a makeover thanks to cool tech like automation, AI, and the whole Industry 4.0 movement. These tools are making things run smoother and reducing the need for people to handle boring, repetitive tasks. Businesses can now focus on more important things.

Money Issues:
With inflation on the rise and competition getting fiercer, companies are tightening their belts. This situation is making them take a hard look at how they operate, which is shaking up workforce dynamics as they aim to boost profits while dealing with financial stress.

Shifts in Consumer Habits:
People are diving into digital, and it’s changing what they want. More folks are leaning toward online services instead of the old-school options, shaking up places like retail and banking. Businesses are rethinking how they operate to keep up with what tech-savvy consumers are after.

Industries Defying the Trend: Who’s Hiring?

Even though some areas are struggling, a few industries are kicking it into high gear and are on the lookout for new talent:

Healthcare:
India’s healthcare sector is booming, with spending set to climb by about 8.5% each year. There has been a big leap in the recognition of India’s medical skills globally. Foreigners now fly to India to receive medical treatment. This growth means there’s a big demand for healthcare workers like doctors, nurses, and support staff as the country focuses more on health and wellness.

Renewable Energy:
Thanks to strong government support, like the National Solar Mission, the renewable energy field is flourishing. This push for sustainable energy is leading to new job opportunities as companies work on innovative solutions for a greener future.

E-Learning:
The e-learning scene is blowing up, especially in rural India. Online education platforms are thriving by offering flexible learning options that cater to a wide range of people keen to up their skills and knowledge in a digital world.

How Job Seekers Can Prepare for Success.

Scared there won’t be a place left for you? Don’t worry we’ve got you covered. Here are three ways you can strive with these new trends;

Upskilling:
In today’s job market, job seekers need to keep improving their skills. You can sign up for courses in areas that are in demand, like artificial intelligence, machine learning, digital marketing, and sustainable technologies. Many online platforms, such as Coursera and Skillshare, offer various classes for different skill levels, so you can learn at your own pace. Having certifications in these fields can strengthen your resume and make you more appealing to employers.

Networking:
Building a strong professional network is key for job seekers. LinkedIn is an excellent tool for this; use it to connect with industry leaders, potential mentors, and peers. Engage with posts, share your ideas, and join discussions to raise your profile. Attending webinars, workshops, and job fairs in your industry can also provide insights into hiring trends and give you a chance to meet recruiters in person.

Exploring New Sectors:
Broadening your job search to consider industries beyond your current one can reveal many opportunities. Look into growing fields like technology, healthcare, sustainability, and remote work. Job boards that focus on new areas, such as Lucres, can help you find roles that match your skills and interests, even if they are different from what you’ve done before. Highlight your transferable skills and eagerness to learn to stand out as a candidate in these new sectors.

By focusing on upskilling, networking, and exploring new sectors, job seekers can improve their chances in the competitive job market.

FAQs

1. Why is hiring expected to reduce in certain industries in 2025?

Economic downturns, automation, and changing consumer behaviors are significant drivers.

2. How will AI impact IT hiring in India?

AI will replace repetitive tasks, reducing the need for certain developer roles but creating demand for specialists in AI integration.

3. Will the retail sector completely stop hiring?

Not entirely, but traditional in-store roles will decline as e-commerce grows.

4. Which industries will see the least impact on hiring?

Healthcare, green energy, and ed-tech are likely to grow due to consistent demand.

5. How does the global economy influence Indian hiring trends?

Dependence on exports and outsourcing links India’s job market to global trends.

6. Are manufacturing jobs safe in India?

Traditional manufacturing jobs are declining, but roles in smart factories are growing.

7. What skills should professionals focus on for 2025?

AI and machine learning, data analytics, digital marketing, and green tech skills.

8. Is the banking sector a good career option in 2025?

Digital banking roles may offer opportunities, but traditional roles are reducing.

9. How can job seekers find opportunities in growing sectors?

Leverage platforms like Lucres for niche industry roles.

10. What can students do to prepare for these changes?

Pursue courses and internships in emerging industries and technologies.