Skills-first is new normal for jobs in 2026

Are you the kind who tops every exam, mugs up theories in minutes, and walks away with medals and trophies but barely works on practical skills? That might make you a university star, but it won’t guarantee you a long queue of job offers. By 2025, Artificial Intelligence (AI) stopped being just a buzzword and became part of everyday conversations. AI literacy is no longer a “good-to-have”; it’s a basic life skill, especially in education and employment. Recruiters now put AI skill sets right at the top of their priority list, and AI fluency has become the bare minimum for new hires. “Companies have moved or are moving away from degree-centric hiring to competency-based models. Graduates must demonstrate applied skills, adaptability, and agility. India will remain a strong growth hub, especially in technology, green energy, and advanced manufacturing, but hiring will be selective,” said Vishal Khurma, CEO, Woxsen University, Hyderabad.

Forbes also mentioned in their report that AI and skills-first hiring will be one of the biggest workplace trends in 2026. According to Shantanu Rooj, Founder and CEO, TeamLease Edtech, the 2026 job market will be defined by selective growth rather than broad-based hiring, with employers prioritising productivity, capability and outcomes over headcount expansion. He also reminded all that overall hiring sentiment in India will remain positive, but job creation will be uneven, strong in skill-intensive roles and muted in repetitive, entry-level work that can be automated. In fact, Monster’s 2026 WorkWatch Report, based on a national survey of 1,504 US workers, echoes the same mood. Employees are stepping into 2026 having largely accepted uncertainty as the new normal. Instead of rushing into bold career moves, many are choosing stability and income security, quietly adjusting through side hustles, upskilling, and a more cautious, selective approach to job hunting.

Of course, AI fluency will be the baseline skill in 2026, not just for technologists but across functions, but equally important will be human capabilities like critical thinking, creativity and decision-making. Sachin Alug, CEO, NLB Services, highlighted that information technology and digital services will lead hiring, driven by continued demand for AI, data, cybersecurity, and technology literacy in 2026. “Employment growth will be strongest in sectors where skill requirements are accelerating. Financial services and insurance will see steady job creation as analytics and risk-focused roles gain priority. Healthcare, manufacturing, automotive, and aerospace will also expand, supported by digital systems and advanced production needs. In parallel, energy, utilities, and sustainability-linked sectors will add roles as environmental and compliance-driven skills gain relevance,” added Alug.

Khurma placed his bet on graduates in 2026, who have experienced exchange programmes, interdisciplinary learning modules, and cross-cultural projects will stand out in a market that values diversity and global mindset. He also highlighted that technology and AI will see steady growth because businesses everywhere are adopting digital tools and automation. Also, Global Capability Centers (GCCs) in India are expanding, creating jobs in software development, data analytics, cybersecurity, and AI applications. “Electric vehicles and electronics need strong supply chains, so jobs will grow in robotics, quality control, and logistics technology. With ageing populations and tech-enabled healthcare, demand for doctors, nurses, and health tech specialists are always on the surge. Telemedicine and AI-driven diagnostics will also create new roles in digital health,” said Khurma.

Rooj mentioned that technology-enabled sectors including digital services, AI-led platforms, manufacturing linked to automation, healthcare, and green energy, are expected to drive employment growth in 2026. “Hiring will concentrate on roles that require specialised skills rather than volume-driven labour,” he said.