Engineering Jobs Grow Just 1 Per cent Since 2022, Amid IT Dominance and Freshers' Salary Surge: foundit
Sep 20, 2024
BusinessWire India
Bengaluru (Karnataka) [India], September 20: On the occasion of World Engineer's Day, foundit (formerly Monster APAC & ME), India's leading jobs & talent platform, has released the latest data on engineering job trends for 2024. The report highlights an interesting dynamic in the job market: while most engineering graduates come from non-IT disciplines, the demand for IT roles continues to outpace non-IT job creation.
In focus-
* Engineering job market increased by just 1% between September 2022 and September 2024, despite significant fluctuations in demand.
* While 70% of engineering graduates are from non-IT fields, 69% of job opportunities are in IT, highlighting a significant gap between qualifications and market demand.
* Bengaluru leads with 29% of engineering jobs in 2024, primarily driven by its booming IT sector.
* Fresh engineering graduates saw salary increases of over 50% in some disciplines, while experienced software engineers faced a 22.6% decline in maximum average salaries.
According to the data, more than 60% of engineering graduates in India specialise in non-IT fields, yet 69% of job opportunities in 2024 have been in IT. This trend illustrates a significant divergence between academic specializations and job market demand.
Seasonal Hiring Trends: Peaks in April, Dips in May
Despite significant peaks and dips over the two-year period, the overall job count shows only a modest 1% increase between September 2022 and September 2024, indicating steady, yet marginal growth in the engineering job market.
Following a traditional spike in December 2022, there was a notable surge in hiring in April 2024, followed by a decline in May. This trend indicates cyclical hiring influenced by project deadlines and budget cycles across industries.
IT Industry Continues to Lead in Engineering Job Creation
Despite most engineering graduates coming from non-IT fields, the IT sector dominates job creation in 2024. IT jobs made up 69% of all engineering opportunities, while non-IT sectors accounted for just 31%. This trend has been consistent since 2022, reflecting the ongoing demand for tech talent driven by digital transformation across industries.
At the same time, over 70% of engineering graduates in 2024 specialise in non-IT disciplines, further emphasizing the gap between graduate qualifications and job market demands.
Distribution of Engineering Graduates and Job Opportunities (2024)
* IT jobs outpace graduate supply: While IT roles dominate the market, only 30% of engineering graduates come from IT disciplines, leading to a talent gap.
* Non-IT graduates in majority: Non-IT fields make up 70% of graduates, yet job opportunities in these sectors remain comparatively limited.
* Consistent demand in key fields: Sectors like Mechanical, Civil, and Electrical engineering maintain a steady demand, aligning more closely with the number of graduates.
Bengaluru Leads in Engineering Jobs, Boosted by IT Dominance
Distribution of Engineering Jobs Across Major Cities (2024)
Bengaluru continues to dominate the engineering job market in 2024, accounting for 29% of all engineering job opportunities in India. This leadership is largely driven by the city's overwhelming share of IT jobs, which make up a significant portion of its engineering positions.
Other metro cities such as Delhi-NCR (15%), Pune (13%), and Hyderabad (13%) are also key players, though their engineering job markets are more balanced between IT and Non-IT roles. Mumbai (11%) and Chennai (9%) contribute to the overall job market but with a relatively lower concentration of IT-driven positions.
Biggest Movers and Shakers in Engineering Salaries
Engineering Salaries (2022 vs 2024)
The data shows notable salary increases across various engineering roles in 2024, with both freshers and experienced professionals seeing significant growth in their pay packages. Software roles have seen a rise in salary for freshers, while some positions for experienced professionals have remained steady or even decreased.
Percentage Change in Salaries (2022 vs 2024)
- Freshers see strong salary growth: Freshers across all roles have enjoyed significant salary increases, particularly in Mechanical and Electrical engineering, where salaries surged by more than 50% in both the minimum and maximum ranges.
- Software salaries for experienced professionals: While freshers in software roles saw a 51.5% increase in their maximum salary, experienced professionals witnessed a 22.6% decline in their maximum salary, suggesting a shift in compensation dynamics for senior roles.
- Stable Growth for Experienced Engineers: Mechanical, Electrical, and Civil engineering roles for experienced professionals saw moderate increases, especially in the maximum salary range for Mechanical Engineers (+20.9%) and Electrical Engineers (+10.2%).
- Consistent Gains in Automotive: Automotive roles remained stable, with freshers seeing a 32.3% increase in maximum salaries, while experienced professionals saw a slight 1% bump in their earnings.
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