By Dr. Gyan Pathak
The 2025 Global Talent Shortage Survey by ManpowerGroup highlights troubling trends concerning the shortage of skilled workers in India, which is even worse than the global average. Approximately 80% of employers in India report difficulties in finding suitable talent for available positions, compared to a global average of 74%. This alarming talent gap requires immediate attention in a rapidly evolving work environment characterized by the adoption of new technologies that demand specialized skills.
Nearly four out of five Indian employers indicate challenges in sourcing the skilled talent they require in 2025. In comparison, about three out of four employers globally report similar difficulties. Since its inception in 2014, India has had a skill development ministry with a specific focus on equipping individuals with the skills needed for various job offerings across industries. However, the latest findings show that the country is still trailing behind the global average.
The global scenario also remains bleak, with a record high hiring demand of approximately 53%. As competition intensifies in the global market, employers face greater challenges in attracting and retaining skilled talent. The report underscores the concerning workforce availability trends, detailing the mounting challenges across industries. This comprehensive study provides essential insights into the current talent landscape, enabling businesses to navigate these challenges effectively.
The talent shortage is widespread and has been escalating since 2014. A notable increase has been observed since 2014, when 36% of employers globally reported experiencing talent shortages. Now, this figure has nearly reached 75% among employers.
In 2006, around 40% of employers worldwide reported talent shortages, which decreased to about 30% in 2008. However, this figure has risen to approximately 78% in 2023. Despite experiencing a slight downturn since then, the situation is still concerning, with around 75% of employers reporting shortages in 2024 and 74% at the start of 2025.
Countries like Germany (86%), Israel (85%), and Portugal (84%) are facing the most significant talent shortages, while Puerto Rico (53%) and Colombia (59%) report the least difficulty. Globally, the Information Technology sector is grappling with the most substantial shortages (76%), closely followed by Healthcare & Life Sciences (77%) and Energy & Utilities (76%). Critical skills in IT & Data, Engineering, and Sales & Marketing are among the most challenging to acquire.
To address these shortages, employers are increasingly investing in upskilling current employees, raising wages, and providing more flexible working conditions. The survey reflects the perspectives of over 40,000 employers across 42 countries, offering a comprehensive overview of global talent trends.
In India, ManpowerGroup India and Middle East Managing Director Sandeep Gulati remarked, “The ongoing talent shortage, with 80% of organizations struggling to fill roles in 2025, highlights the pressing need for collective action.”
Severe talent shortages are particularly pronounced in the IT, Energy, and utilities sectors, driven by a growing demand for specialized skills. The IT sector leads with an 84% hiring demand, closely followed by Energy and Utilities, and Healthcare and Life Sciences at 81% each. In South India, 85% of employers report difficulties in finding suitable talent. This challenge is more acute among large and medium-sized enterprises.
Employers in India are expected to adopt a cautious approach to hiring in 2025 due to persistent talent shortages, especially in the IT, Energy, and utilities sectors. With challenges in fresh hiring processes, organizations are shifting their focus toward upskilling existing employees. The survey gathered data from more than 3,000 employers across four regions of the country, indicating a continuous trend of talent shortages since 2022.
The recruitment process has been hampered due to talent shortages. Consequently, around 39% of employees are being offered upskilling and reskilling opportunities by their employers. Only 22% of employers in India are in favor of increasing temporary recruitment levels. About 38% are exploring new talent pools, and 29% are considering raising wages to attract talent.
With youth unemployment in India reaching alarming levels, the talent shortage exacerbates the job crisis. Urgent actions are required to tackle this issue. (IPA Service)
