Unstop’s Talent Report 2026 finds a widening gap between salary expectations and outcomes among fresh graduates, with 73% of undergraduate students expecting annual salaries above Rs 5 lakh, but only 40% securing such offers, even as nearly 88% of companies report active hiring.
The report, based on insights from over 37,000 students and 500 HR leaders. While companies continue to hire, a large proportion of students remain without jobs.
According to the findings, 87.8% of HR leaders are actively hiring and 90% are maintaining or increasing hiring budgets. However, 85% of engineering students, 84% of undergraduate students and 74% of MBA students are still unplaced. Among undergraduates, 17% have also faced offer disruptions, including delays and rescinded offers.
The report also points to a shift in salary patterns. Around 30% of MBA graduates earn below Rs 10 lakh, while 39% of engineering graduates earn below Rs 7 lakh, indicating a narrowing gap in pay across degrees. At the same time, students appear to be adjusting their expectations, with over 90% saying they are open to lower compensation if it offers better learning opportunities and long-term growth. In addition, 82% of B-school students prioritise in-hand salary over perks.
Technology is playing an increasing role in how students look for jobs. Between 80% and 86% of students reported using GenAI tools for job applications and interview preparation. On the employer side, 57% of recruiters use AI for screening and profile matching, while 55% use AI-driven interviews.
The report also highlights a growing focus on skills over traditional qualifications. Between 95% and 98% of students believe hiring has become skills-based. Among HR leaders, 64% define premium talent through skills such as AI, data, cloud and cybersecurity. The most in-demand skills include problem-solving at 49%, AI or ML at 39%, and emotional intelligence at 30%.
Despite the rise in AI adoption, gaps in training remain. While 48.4% of HR leaders prioritise AI and digital literacy, 55% of undergraduate students and 46% of engineering students report having no formal AI training. The report also notes a gender gap, with male students using GenAI tools 9 to 14 percentage points more than female students.
Ankit Aggarwal, Founder and CEO of Unstop, said, “India’s talent market is not facing a hiring slowdown, it is undergoing a structural shift. While opportunities exist, access to them is becoming more selective, driven by skills, adaptability, and increasingly, AI readiness. The gap we are seeing today is not just about jobs, but about preparedness. Candidates who are able to combine strong fundamentals with real-world skills and AI fluency will be the ones who stand out in this evolving landscape.”