India’s hiring market remains buoyant, but recruiters are finding it increasingly difficult to match candidates with roles, according to new research released by LinkedIn on February 3, 2026. The study reveals that 74% of recruiters in India now struggle to find qualified candidates, even as hiring activity is running nearly 40% above pre-pandemic levels. The challenge is being driven by a widening volume-quality gap. More than half of recruiters facing hiring difficulties cited a surge in AI-generated applications, while 47% pointed to persistent shortages of in-demand skills. Nearly 48% said identifying genuine applications amid low-quality or misleading profiles has added friction to the recruitment process. Platform data further shows that applicants per open role in India have more than doubled since 2022, intensifying competition.
To address these pressures, recruiters are increasingly turning to AI. Around 71% said AI has helped them uncover candidates with relevant skills they would have otherwise missed, while 76% believe it is already speeding up hiring. LinkedIn’s APAC Vice President Ruchee Anand said the focus is shifting from pedigree to demonstrated skills, a transition that AI enables at scale.
In Kolkata, recruiters report similar trends, with high application volumes for IT services, BFSI, and emerging startup roles. Local employers are adopting AI-powered tools to streamline shortlisting, reduce time-to-hire, and access wider talent pools across eastern India, reflecting a broader national shift toward skills-first, technology-enabled hiring.