India Leads Asia in AI Hiring and Job Cuts as Skills Gap Challenges Freshers: Nomura Report
A recent analysis by Nomura economists Sonal Varma and Si Ying Toh highlights that India is the single largest contributor to both artificial intelligence-driven hiring and workplace reductions across Asia. While the adoption of AI continues to create new technical roles, the report warns that a widening skills mismatch is threatening career pathways for entry-level job seekers.
What Happened
Nomura examined 69 employment-related corporate cases across Asia recorded between 2022 and August 2026. Across the region, the findings tracked 1,30,758 AI-related hires compared with 60,654 job losses. The technology sector accounted for over 90% of the new hires, whereas the financial services industry absorbed approximately 60% of the workforce cuts. Large business-process outsourcing (BPO) hubs—predominantly in India, China, and the Philippines—have experienced the highest exposure to these labor shifts.
The economists characterized India as “ground zero” for understanding the employment impacts of artificial intelligence due to its extensive workforce and deep dependence on technology services and BPO operations.
Key Highlights
- Regional Epicenter: India is the largest regional contributor to both AI-related job additions and workforce displacements.
- Regional Numbers: Across Asia, Nomura documented 1,30,758 AI hires against 60,654 displaced roles based on reported corporate cases.
- Sectoral Disparity: More than 90% of AI-driven recruitment occurred in the technology sector, while about 60% of job cuts occurred in financial services.
- Two-Tier Labor Market: Automated tools and chatbots are replacing routine customer support and basic operational tasks, creating strong demand for experienced AI specialists while reducing openings for beginners.
- Structural Shift in Training: Companies are moving away from traditional mass recruitment and post-onboarding training models, focusing instead on candidates who already hold advanced, specialized technical capabilities.
Why This Matters
For decades, India’s economic advantage in tech exports relied on a large pool of educated workers handling customer support, software testing, and data processing. Historically, these basic roles served as entry-level training grounds where fresh graduates could understand business operations before advancing to higher-paying positions.
Nomura’s report notes that automated solutions are actively replacing these routine positions. Because customer support staff cannot seamlessly transition into advanced AI engineering roles that require specialized degrees and years of experience, a two-tier labor market is emerging. Consequently, demand is rising sharply for experienced specialists while traditional entry-level opportunities are contracting.
What to Watch Next
Nomura points out that its findings represent reported corporate cases rather than a comprehensive census of the entire labor market. Observers and industry participants will be monitoring how fast-evolving technical skill requirements continue to affect hiring patterns and career entry points for fresh graduates in India’s technology and outsourcing sectors.
Frequently Asked Questions
What were the main findings of the Nomura report on AI jobs?
The analysis identified 1,30,758 AI-related hires and 60,654 job cuts across Asia between 2022 and August 2026, with India serving as the primary contributor to both hiring and displacement.
Which sectors saw the most hiring and workforce reductions?
Over 90% of AI-related hires were recorded in the technology sector, while roughly 60% of the job cuts occurred within financial services.
Why are fresh graduates facing challenges in the AI-driven job market?
Routine entry-level positions that historically offered on-the-job training are being automated by AI tools, while newly created roles require specialized degrees and technical experience that freshers often lack.
Source: Report by Nomura economists Sonal Varma and Si Ying Toh, as reported by Business Today.