According to a report by ET, there is a “fresher glut” affecting thousands of job seekers, including graduates from prestigious engineering and management institutes. This glut is a result of a large talent pool of young professionals, which includes recent graduates and those with one to two years of experience.

The report highlighted a recent case where a graduate from Vellore Institute of Technology secured a job offer from an American e-commerce company with a promised package of approximately Rs 50 lakh. However, the offer was abruptly canceled a few months into the internship, citing role unavailability. The graduate is now getting assistance from a recruitment firm to find alternative employment.

This year, the pool of job seekers has expanded due to a higher-than-usual number of candidates from the 2022 batch of engineers and B-school graduates seeking job changes in sectors like consulting, IT services, and startups. This influx exacerbates the situation for the 2023 batch of freshers, as their final job offers are facing delays or cancellations.

HirePro, a recruitment firm, has reported that nearly 45% of candidates from the 2022 batch are actively looking for employment, compared to the usual 25% in a typical year. Companies are cutting jobs and tightening recruitment processes due to the uncertain global macroeconomic climate. S Pasupathi, the COO of HirePro, estimates that 20-30% of the offers from the 2023 batch have been delayed or revoked.

This creates direct competition between the 2022 and 2023 batches, with the looming presence of the 2024 batch entering the job market soon. Previous batches have an advantage due to their on-job experience, which is highly valued by recruiters.

Experts predict that this situation will pose significant challenges for the placement of freshers in the Class of 2024. Recruiters often prefer candidates with a few years of experience who can quickly adapt to their roles, especially in technology-related sectors and startups.

This issue comes at a crucial time, as the upcoming placement season at business schools and engineering institutes is approaching. Tier-1 institutions may experience a milder impact, while tier-2 and tier-3 institutes are likely to be more affected.

Aditya Narayan Mishra, the CEO of Ciel HR Services, stated that there has been a decline in hiring of freshers by about 15-20% for the batch that graduated in June-July 2023 compared to the previous year. Mishra attributed this decline to companies focusing on cost optimization and efficiency improvement. Many graduates from the 2022 and 2023 batches are still struggling to find their desired jobs.

Sonal Arora, the country manager at GI Group Holding India, observed that there is an abundance of entry-level talent compared to pre-Covid times. She explained that sectors like IT services, ITeS, startups, professional services, and consulting have been impacted by macroeconomic headwinds, resulting in a surplus of talent compared to demand.