Picture this: 83 per cent of engineering graduates and 46 per cent of B-school graduates remain without a job or internship offer, with 73 per cent of recruiters dismissing premier college tags in favour of talent-based hiring. Two in three female Arts and Science graduates earn below Rs 6 LPA, while their male counterparts largely surpass this mark. Also, 77 percent of GenZ professionals prefer monthly or project-based reviews. This was revealed in the latest Unstop Talent Report 2025.
The report contains detailed analyses of various aspects, including key hiring trends, Gen-Z’s workplace expectations, and shifts in talent engagement, among others.
The study was conducted based on a survey of more than 30,000 Gen-Z professionals and 700 HR leaders. Unstop also held conversations at multiple roundtables across the country with HR leaders around the year to prepare this report.
Around 51 per cent of Gen-Z professionals seek multiple income streams through freelancing and side hustle, with the number rising to 59 per cent among B-school students.
The report also delves into the glaring gender pay gaps as two in three female Arts and Science graduates earn below ₹6 LPA, while their male counterparts largely surpass this mark. However, B-schools and engineering schools demonstrate pay parity, ensuring fair compensation irrespective of gender.
The report also found that there is a disconnect between Gen-Z talent and recruiters regarding performance feedback. While 77 per cent of Gen-Z professionals prefer monthly or project-based reviews, 71 per cent of recruiters still rely on traditional annual or biannual evaluations.
Similarly, while 70 per cent of Gen-Z candidates engage in case studies, ideathons, and simulations, only 25 per cent of recruiters consider them a primary hiring tool.
Interestingly Unstop’s report also reveals the changing hiring landscape, with nearly 73 per cent of recruiters dismissing premier college tags in favour of talent-based hiring. The report also found that HR has emerged as a top career choice among engineering students, signalling a shift in the industry.
The report also mentions that one in four undergraduates took up unpaid internships in 2024, a steep rise from one in eight in 2023. The report highlights that 25 per cent of job offers now come from next-gen industries like E-commerce, Startups, and Product companies, reinforcing the growing influence of emerging sectors. The report says that Google, Microsoft, and Amazon emerged as the top choices for Engineering graduates, while B-school graduates favoured Google, McKinsey, and Microsoft.
Next-generation companies such as Zomato and Meesho were preferred among Gen-Z professionals, signalling a gradual shift in career aspirations. This trend highlights the increasing preference for skill-based hiring over conventional credentials, as young professionals prioritise dynamic work environments and growth opportunities in emerging industries.
“Organisations must move beyond legacy hiring practices and embrace a skills-first approach. Gen-Z is truly challenging the status quo. They value flexibility, continuous feedback, and diverse career paths, and companies that align with these expectations will have a competitive edge in attracting and retaining top talent. With the hiring and work landscape rapidly evolving, both employees and organisations must adapt to thrive,” says Ankit Aggarwal, Founder and CEO of Unstop.
That said, regarding the scarcity of opportunities for engineering graduates, a job crisis is looming large on India's IT capital Bengaluru as more than 50,000 people were laid off in the city by various IT and tech companies. All this is being attributed to the rapid rise of artificial intelligence (AI) and automation.
Reports point out that in the near future, Bengaluru is expected to witness widespread layoffs in the IT industry, with lower-wage employees being the most vulnerable. It is expected that businesses will streamline expenses and entry-level programmers and software testers will be replaced by AI systems that can code, debug, and optimise software with greater efficiency at a fraction of the cost.
Experts point out that the adoption of advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML) and generative AI is transforming the IT sector, particularly in areas like software development, testing, and IT infrastructure management. These technologies are enabling companies to automate repetitive and routine tasks, streamline processes, and improve overall efficiency. As organizations gain experience with these tools, they are better able to document, retrieve, and reuse components of their work, further driving productivity gains.
While this increased efficiency is reducing the number of engineers required for certain projects, it is also creating a growing demand for specialized skills. “Companies are actively investing in upskilling their workforce to meet these evolving demands, ensuring employees are equipped to work alongside these technologies and contribute to higher-value tasks,” remarked Aditya Narayan Mishra, MD and CEO of CIEL HR.
This expert points out that this shift is reshaping workforce planning and talent acquisition strategies, with a greater emphasis on roles that require advanced technical expertise, creativity, and problem-solving capabilities.
“In the short term, automation may lead to a reduction in certain types of jobs, particularly those involving repetitive tasks. However, in the long term, it is expected to create new opportunities in emerging fields and drive innovation. The key for both organizations and professionals is to adapt, reskill, and align with the changing demands of the industry,” added Mishra.
