A wave of nearly 50,000 job cuts in 2026 has flooded the labour market with candidates, sharply increasing competition as applications per role surge. According to Careernet data, mid-level positions now attract around 100 applicants within 24 hours, up from 36–48 hours previously, while tech roles are seeing a 20–25 per cent rise in applicant volumes over just five working days, with job seekers applying more broadly across industries and roles.

Data from TeamLease Digital also indicates that post major layoffs, applications for every role have gone up by 1.5-2x across several mid-to-senior tech roles, particularly in product & program management roles.

“With thousands of job cuts, the available talent pool of job seekers has expanded faster than the market can absorb, driving a sharp surge in applications per role. Displaced professionals aren’t just applying more but more broadly, targeting adjacent functions, different industries and roles they previously overlooked or for which they may be overqualified,” Neelabh Shukla, Chief Business Officer, Careernet, said.

The pressure is most acute in early and mid-level positions, among candidates with 0–8 years of experience, especially across application maintenance, software engineering and support roles, where demand is being disrupted due to AI-led automation.

According to Husain Tinwala, President of upGrad Rekrut, roles seeing a flood of applications are Testing and QA, Support roles, Legacy technology stacks, General software engineering and Mid-management roles. On the other hand, roles where demand remains strong but are seeing a relative shortage are AI and machine learning, Data engineering, Cloud architecture and Cybersecurity. Over half of current hiring is concentrated in emerging digital capabilities, while legacy roles continue to decline. Skill gaps in these areas are widening, which means a surge in applications is not translating into successful placements where capability gaps exist.

“Employers are becoming more selective. Hiring processes are sharper, with increased emphasis on problem-solving ability, adaptability and demonstrable impact. The heightened competition has, in many cases, moderated salary expectations in non-niche roles, shifting some negotiation leverage back to employers,” Ganesh S Padmanabhan, VP - Recruitment Business at CIEL HR, said.

Volume-led hiring has given way to precision recruitment, with a focus on candidates who bring specialised, immediately deployable skills, particularly in AI, data and cloud. This recalibration is showing up in pay trends too. Salary increments across India Inc are projected at around 9.1 per cent in 2026. However, with supply outpacing demand in several roles, negotiating leverage is quietly tilting towards employers. Meanwhile, both sides are leaning into flexibility - contract, freelance and project-based arrangements as companies manage costs and professionals navigate uncertainty.

“The current surge in applications reflects a short-term correction rather than a long-term slowdown. After the 2021-22 hiring spike, India’s IT hiring saw a 7-10 per cent decline in FY24, while job applications per role increased significantly across platforms. Our estimates indicate 18-27 per cent growth in demand for AI, data and cybersecurity roles. This divergence signals a demand shift towards high-skill, niche capabilities, moving towards a more measured, skills-led hiring cycle rather than a prolonged downturn,” Neeti Sharma, CEO, TeamLease Digital, explained.

Shukla added that hiring momentum is also migrating beyond traditional tech into BFSI, healthcare and manufacturing sectors, which are increasingly hungry for tech talent. The one group navigating harder terrain is early-career professionals.

Entry-level hiring has slowed as automation reshapes foundational roles and companies prioritise job-ready talent. With roughly 1.5 million graduates entering the market annually but only 40–45 per cent employable, freshers face longer searches and sharper competition, though those skilled in AI, data engineering and cybersecurity are hired quickly.

Published on April 10, 2026