Employment in India increased by 8.9% after eight consecutive months of decline, AI and education sector boomed
Jobs: After 8 consecutive months of decline, employment generation in India increased by 8.9% in May 2025. According to the report of Indeed, jobs were created rapidly in the child care, education, personal care, and manufacturing sectors. Employment generation in generative AI more than doubled.
Employment generation in the country increased by 8.9 percent in May 2025 after eight consecutive months of decline. This rate of employment growth is faster than in other countries. However, on an annual basis, it registered a slight decline of 1.8 percent.
According to the report from the jobs website Indeed, despite the annual decline, employment generation in India was about 80 percent higher than before the COVID-19 pandemic. This is more than in other major markets.
The report stated that job creation was mainly in child care (27 percent), personal care and home health (25 percent), education (24 percent), and production-manufacturing (22 percent). Additionally, job creation in the generative AI sector was 1.5 percent until May, which is more than double compared to last year.
Callum Pickering, Senior Economist, Asia-Pacific Region, Indeed, said, "India is moving towards becoming a more formal economy." Therefore, job creation in India is growing faster than in other countries. As the country evolves, job creation in the formal sector will significantly outpace overall job growth across the country.
