World Bank: AI has not cut India's overall employment yet, but 55% of IT firms surveyed hire fewer entry-level workers

The World Bank says AI has not yet caused job losses across India, but 55 percent of IT firms in one survey report lower entry-level hiring. Its October 2026 India Development Update, subtitled "India and Artificial Intelligence - Seizing the Development Opportunity", cites a survey of 651 IT firms across 10 cities that "found no decline in aggregate employment associated with generative AI, but substantial moderation in entry-level recruitment": 55 percent of firms reported lower entry-level hiring, against 25 percent for mid-level and 14 percent for senior positions. "The adjustment so far appears to have occurred mainly through slower recruitment, particularly at the entry level, rather than through large-scale displacement of incumbent workers," the report says. Citing Goldman Sachs, it says the six largest IT-services companies cut about 64,000 workers from a combined 1.7 million after the post-pandemic hiring surge, while the rest of the technology-services sector, including global capability centres, added around 700,000 over three years, taking it to about 4.4 million. By the bank's estimate about 22 percent of Indian employment is highly exposed to AI, compared with around 60 percent in advanced economies and 35 percent in emerging and developing economies. It warns that workers doing routine cognitive tasks face greater displacement risk, which could leave entry-level and younger workers particularly vulnerable. The report names no employer cutting jobs because of AI, so nothing here enters the AI layoffs tracker.