AI-linked hiring in India outpaces job losses by over 51,000: Nomura
New Delhi, August 8
Artificial intelligence is creating more jobs than it is eliminating in India, with AI-related hiring reaching 83,100 compared with 31,921 documented layoffs and attrition, according to a Nomura report.
The findings indicate a net positive employment impact of AI in India so far, even as the technology disrupts traditional roles and reduces demand for entry-level workers.
In its Asia Economic Monthly report, Nomura said India was experiencing the largest absolute impact from AI among the Asian economies covered by its analysis, both in terms of documented layoffs and hiring.
The report said India's large population and its position as a global back-office hub have made the country a key market for assessing AI's impact on employment.
"We find that India is experiencing the largest absolute impact from AI across both documented layoffs/hiring freezes and AI hiring," Nomura said, adding that "so far, the net impact is also positive for India."
Nomura's data showed that India accounted for 83,100 of the roughly 1.31 lakh AI-related jobs created across the Asian economies in its database. In comparison, it identified 31,921 AI-related layoffs and attrition in India, the highest among the countries surveyed.
While overall hiring has exceeded job losses, the gains have not been evenly distributed across workers. Nomura noted AI was creating a two-tiered labour market, with companies showing weaker demand for entry-level employees while demand for experienced and senior workers remained relatively stronger.
Citing an ICRIER survey of 651 firms in India's IT sector, the report said 55 per cent of companies reported a decline in entry-level hiring, compared with 25 per cent reporting a decline in mid-level hiring and 14 per cent in senior-level recruitment.
The shift comes as companies increasingly automate routine work typically handled by junior employees. Nomura identified banking back-office operations, customer service and junior technical roles such as quality assurance testing and coding among the jobs being displaced by AI.
The impact is also showing up through slower recruitment rather than outright layoffs. Nomura cited staffing firm Xpheno's estimate that net hiring by Indian IT companies fell to 140,000 in FY26 from 600,000 in FY22 as companies reduced campus recruitment instead of terminating existing employees.
At the same time, most new AI-related jobs remain concentrated in technology. Nomura said more than 90 per cent of AI-related job creation in its Asian sample came from the technology sector, while hiring in India was mainly for AI data annotation and linguistics work.
Nomura said the early evidence runs counter to fears that AI adoption would result primarily in large-scale job destruction, but cautioned that the technology was still at an early stage and its full labour-market impact could take years to emerge.
"We are positively surprised by our aggregate result showing that AI has been a net positive for jobs," the report said, while noting that there were "many disruptions beneath the surface."
— ANI
Reader Comments
As someone working in the IT sector, I can vouch for this trend. My company is hiring heavily for AI data annotation roles but not for traditional coding positions. It's a mixed bag honestly—new opportunities are there but the skill requirements are completely different. Time to upskill or be left behind! 💻📈
The report says net positive, but what about the quality of new jobs? AI data annotation is often low-paid contract work compared to the stable engineering roles being lost. And our campus placements are down from 6 lakh to 1.4 lakh—that's a huge drop. Numbers can be misleading; we need to look at the bigger picture.
Good to see India leading the AI job creation in Asia. But the report correctly warns that this is early days. The US went through similar transitions with outsourcing and automation. India's IT sector needs to invest in continuous learning infrastructure—government and private sector together—to make this transition smoother.
My brother just graduated with a CS degree and is struggling to find an entry-level job. This report validates what we're seeing at home—55% of IT firms cut entry-level hiring! It's scary for the youth. Hope the government brings in policies that incentivize companies to train fresh talent in AI skills. 🙏
The fact that 90% of AI job creation is in the tech sector is concerning. What about the rest of the economy? Banking back-office and customer service jobs are being automated, and those workers might not have the skills to transition into AI roles. We need broader economic diversification
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.