By Dr. Gyan Pathak
The 2025 Global Talent Shortage Survey by ManpowerGroup reveals alarming trends in talented workforce shortage in India that is worse than the global average. About 80 per cent of employers in India are struggling to find out the right talent for the works available, as against the global average of 74 per cent. Such an alarming level of talent shortage needs urgent attention in the fast-changing world of work with deployment of new technologies requiring special skills.
Nearby 4 in 5 Indian employers have reported difficulty in finding skilled talent they need in 2025. However, at global lever nearby 3 in 4 employers have reported difficulty. India has skill development ministry since 2014, with special focus of providing matching skill for the available jobs across the industries. However, the latest report suggests that the country is still lagging even behind the global average.
The global situation also remains disheartening despite the highest hiring demand of about 53 per cent. An increasingly competitive global market, the ability to attract and retain skilled talent has never been more crucial for the employer companies, says the report, while revealing the alarming trends in workforce availability highlighting the growing challenges employers face across various industries. This comprehensive report provides valuable insights into the current state of the talent landscape, equipping businesses with the knowledge they need to navigate these challenges effectively.
Talent shortage is widespread and is rising since 2014. A significant rise has been registered since 2014 when the talent shortage was felt by 36 per cent of the employers globally. Now it is nearly true for 75 per cent of the employers.
In 2006 about 40 per cent employers globally had reported talent shortage which came down to about 30 per cent in 2008. It went on rising to about 78 per cent in 2023. It had downward trend since 2023, which shows only a little improvement. In 2024, about 75 per cent employers reported shortage, while it is 74 per cent in the beginning of 2025.
Countries such as Germany (86%), Israel (85%), and Portugal (84%) are experiencing the highest levels of talent scarcity, while Puerto Rico (53%) and Colombia (59%) report the least difficulty. At global level The Information Technology sector faces the most significant shortages (76%), followed closely by Healthcare & Life Sciences (77%) and Energy & Utilities (76%).Critical skills such as IT & Data, Engineering, and Sales & Marketing are among the hardest to find.
To combat these shortages, employers are focusing on upskilling current employees, increasing wages, and offering more flexible work arrangements. The survey includes responses from over 40,000employers in 42 countries, providing a robust overview of global talent trends.
As for India, ManpowerGroup India and Middle East Managing Director Sandeep Gulati has said, “The persistent talent shortage, with 80 per cent of organisations struggling to fill roles in 2025, underscores the urgent need for collective action.”
An acute talent shortage is faced in IT, Energy, and utilities sectors, which is driven by escalating demand for specialised skills. IT tops the list with 84 per cent hiring demand, closely followed with 81 per cent each by energy and utilities, and healthcare and life sciences. In South India, 85 per cent of employers reported difficulty in finding matching talent. Large and medium enterprises are facing this difficulty more acutely.
Employers in India are expected to proceed cautiously with hiring in 2025 due to ongoing talent shortages, particularly in IT, energy, and utilities sectors. Employers have now shifter their focus from hiring to upskilling their current employees, since hiring a fresh has become very difficult process. The Survey had collected data from more than 3,000 employers across four regions of the country. The trend of talent shortage has been found persisting since 2022.
Fresh recruitment process has been hindered due to shortage of talent, and hence large number of employees, about 39 per cent, are being offered upskilling and reskilling opportunities by the employers. Only 22 per cent of employers in India favour increasing the level of temporary recruitment. About 38 per cent employers are targeting new talent pools while 29 per cent are willing to increase wages.
When unemployment among Indian youth has reached very high level, the shortage of talent adds to the crisis of finding jobs making it worse. It is high time to act to face this challenge. (IPA Service)