India's Hiring Paradox: Recruitment Activity Surges Amidst Challenges in Identifying Qualified Candidates

Nearly three out of four Indian recruiters — 74% — say they are struggling to identify qualified candidates for open roles, meaning only a limited share of hiring teams are currently able to find the right talent with ease. The contrast puts India’s hiring paradox into perspective. Even as recruitment activity remains well above pre-pandemic levels, matching skills to roles is proving harder than ever in a labour market shaped by speed, scale, and artificial intelligence. According to LinkedIn, the global hiring platform’s data shows that recruitment activity in India is running roughly 40% higher than before the pandemic, yet confidence in candidate quality has declined sharply. Recruiters point to a growing volume-quality mismatch, where the sheer number of applications no longer translates into better hiring outcomes. Among recruiters who say hiring has become more difficult, more than half attribute this to a surge in AI-generated applications, while nearly as many highlight persistent shortages in in-demand skills across sectors . The challenge is not just about volume, but about credibility. Nearly half of recruiters say distinguishing genuine, high-quality candidates from misleading or low-effort applications has become a major source of friction. With AI tools making it easier for candidates to mass-apply, tailor resumes instantly, or embellish experience, recruiters are spending more time filtering noise rather than assessing capability. This has turned hiring into a more crowded and competitive process, where the signal-to-noise ratio is steadily worsening. Platform data further illustrates the pressure. The number of applicants per open role in India has more than doubled since 2022, intensifying competition on both sides of the market. At the same time, jobseekers themselves appear ill-equipped to navigate this environment. While a large majority of professionals say they are actively looking for jobs in 2026, an even larger share admit they feel unprepared for the hiring process, underscoring a widening gap between opportunity and readiness. Ironically, the same technology complicating recruitment is also being positioned as its solution. According to LinkedIn, recruiters who are already using AI tools report tangible benefits. A majority say AI has helped them uncover candidates with relevant skills they might have otherwise missed, while many believe it has made assessing candidate capabilities faster and more accurate. For time-strapped hiring teams, AI is increasingly seen as a way to restore efficiency and focus. Ruchee Anand, APAC Vice President at LinkedIn Talent Solutions, notes that hiring is moving away from pedigree and past job titles toward demonstrated skills and capability. Executing this transition at scale, she says, is nearly impossible without AI. Looking ahead, adoption is expected to accelerate as per the report. Around eight in 10 Indian recruiters say they plan to expand their use of AI for hiring, from sourcing talent to evaluating applications . Many also expect to increase AI-driven pre-screening interviews in 2026, believing it will lead to more meaningful recruiter-candidate interactions, quicker hiring timelines, and better insight into real skills rather than surface-level credentials.