AI is a net job creator in India:But freshers face the heat as ‘Silent Firing’ rises: Nomura Report

Artificial Intelligence (AI) is creating more jobs than it destroys in India, contrary to widespread fears of mass layoffs. However, the technological shift is making it significantly harder for freshers and entry-level job seekers to find work. These are the key findings of a recent report by global brokerage firm Nomura, titled “Beyond the Headlines: AI Has Added Jobs in Asia—So Far.” Key Highlights More Jobs Created than Lost: Between 2022 and August 2026, AI created 1,31,000 new jobs in Asia, while destroying only 61,000. India is a Major Gainer: India, China, and the Philippines are leading the region in AI-driven job growth. The Fresher Crisis: 55% of Indian IT companies surveyed have cut down on entry-level hiring. Senior Talent in Demand: Only 14% of companies reduced hiring for senior roles, showing a strong preference for experienced professionals. The Rise of ‘Silent Firing’: Companies are freezing campus placements and new hiring instead of laying off existing staff. The ‘K-Shaped’ Split in the Job Market The Nomura report highlights a clear “K-shaped” split in the employment market. This means the job market is dividing into two opposite directions: High Demand for Seniors: Companies are actively looking for experienced professionals who have a deep understanding of business management and strategy. Low Demand for Juniors: Entry-level jobs, particularly in routine coding and software testing, are rapidly shrinking as AI automates these tasks. A survey of 651 Indian IT companies confirms this trend. While more than half (55%) of these companies have reduced hiring for freshers, only 14% have cut down on hiring for senior positions. Nomura noted that a similar trend has already played out in South Korea’s highly automated sectors. What is ‘Silent Firing’? Instead of making headlines with mass layoffs, companies are now adopting a strategy known as “silent firing.” Instead of actively firing existing employees, firms are simply stopping new recruitment. This includes a sharp drop in college campus placements. While this helps companies manage their costs quietly, it is quietly shutting the door on young graduates looking to enter the workforce.