Employees hold tight to jobs as mounting economic jitters shake up hiring

Amid ongoing geopolitical uncertainties, workforce dynamics is undergoing a shift with fewer professionals switching jobs, choosing instead to stay with their current employers. This trend aligns with subdued hiring activity across major IT companies, as organisations adopt a cautious approach amid tightening client budgets and economic headwinds. Major tech companies such as Meta, Google, and Intel have either cut jobs or are also reportedly planning layoffs, further reinforcing the environment of caution.

Over the past few quarters, many employees have opted to stay with their current employers rather than explore new opportunities, according to analysts.

Recruitment funnels are also showing signs of stabilisation. According to Neelabh Shukla, Chief Business Officer at Careernet, India’s leading holistic talent solutions provider, tech roles in startups have seen a 10–30 per cent improvement in candidate retention during the hiring process.

Stability over ambition

Shukla notes that candidates who previously switched jobs primarily for higher compensation now have a more grounded view of market realities. As a result, that segment has shrunk, which he sees as a positive development for the overall ecosystem.