More jobs than layoffs? AI-related hiring is outpacing job losses in India: Nomura report
Artificial intelligence is creating more jobs than it is cutting in India. According to a report by Nomura, AI-related hiring has reached 83,100 compared with 31,921 documented layoffs and attrition.
More jobs than layoffs? AI-related hiring is outpacing job losses in India: Nomura report | Image: AI
More jobs than layoffs? At a time when massive layoffs due to artificial intelligence (AI) are haunting employees, a report by Nomura says that AI is creating more jobs than it cuts in India. AI hiring has reached 83,100, compared to 31,921 documented layoffs and attrition. The findings in the report highlight a new perspective and a net positive employment impact of AI in the country so far. However, AI technology is harming traditional roles and reducing demand for entry-level workers.
India Sees Asia's Largest AI Workforce Shift In Hiring, Cuts
In its Asia Economic Monthly report, Nomura noted that India is witnessing Asia's biggest AI impact, leading in both job creation and layoffs. The report mentioned that the country's population and its position as a global back-office hub make it a key market for testing AI's impact on jobs.
"We find that India is experiencing the largest absolute impact from AI across both documented layoffs/hiring freezes and AI hiring," Nomura said, adding that "so far, the net impact is also positive for India."
India Adds Over 83,000 AI Jobs Despite Leading Region With 32,000 Layoffs
Nomura's data showed that India accounted for 83,100 of the roughly 1.31 lakh AI-related jobs created across the Asian economies in its database. In comparison, it identified 31,921 AI-related layoffs and attrition in India, the highest among the countries surveyed.
While overall hiring has exceeded job losses, the gains have not been evenly distributed across workers. Nomura noted AI was creating a two-tiered labour market, with companies showing weaker demand for entry-level employees while demand for experienced and senior workers remained relatively stronger.
Citing an ICRIER survey of 651 firms in India's IT sector, the report said 55 per cent of companies reported a decline in entry-level hiring, compared with 25 per cent reporting a decline in mid-level hiring and 14 per cent in senior-level recruitment.
The shift comes as companies increasingly automate routine work typically handled by junior employees. Nomura identified banking back-office operations, customer service and junior technical roles such as quality assurance testing and coding among the jobs being displaced by AI.
Indian IT Shifts To Slower Hiring Over Layoffs
The impact is also showing up through slower recruitment rather than outright layoffs. Nomura cited staffing firm Xpheno's estimate that net hiring by Indian IT companies fell to 140,000 in FY26 from 600,000 in FY22 as companies reduced campus recruitment instead of terminating existing employees.
At the same time, most new AI-related jobs remain concentrated in technology. Nomura said more than 90 per cent of AI-related job creation in its Asian sample came from the technology sector, while hiring in India was mainly for AI data annotation and linguistics work.
According to Nomura, early data debunk the mongering fear that AI would mostly destroy jobs. However, it also warned that technology is still in its early stages and the full impact on jobs will take years to show.
(with ANI inputs)
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