Unstop has released its Talent Report 2026, highlighting a gap between salary expectations and outcomes for freshers, alongside shifts in hiring practices and skill requirements.

The report, based on inputs from more than 37,000 students and over 500 HR leaders, shows that 73% of undergraduate freshers expect salaries above ₹5 lakh per annum, but only 40% secure roles at that level.

It also indicates a decline in the premium associated with degrees. Around 30% of MBA graduates earn below ₹10 lakh per annum, while 39% of engineering graduates earn below ₹7 lakh per annum.

Despite salary expectations, over 90% of students are willing to accept lower compensation in exchange for learning opportunities and career growth. Among management students, 82% prioritise in-hand salary over additional benefits.

The report notes that hiring activity remains strong, with 87.8% of companies recruiting and most maintaining or increasing hiring budgets. However, placement outcomes remain limited, with 85% of engineering students, 84% of undergraduate students and 74% of MBA students yet to secure jobs.

Undergraduate students face the highest pressure, with 17% reporting offer disruptions such as delays or withdrawals.

The findings point to a shift in hiring practices, with increased emphasis on skills and technology. Between 80% and 86% of students are using generative artificial intelligence tools for job applications and interview preparation.

Employers are also incorporating technology into recruitment, with 57% using AI for screening and 55% for interviews. Around 64% of HR leaders define high-value candidates based on skills in areas such as artificial intelligence, data and cloud computing.

The report highlights a gap in readiness, with more than half of undergraduate students and nearly half of engineering students lacking formal training in AI, despite employers placing importance on digital and technical skills.

It also identifies a difference in AI usage between male and female students, indicating disparities in access and preparedness.

Ankit Aggarwal, founder and chief executive of Unstop, said the labour market is undergoing structural changes, with hiring becoming more selective and driven by skills and adaptability.

The report concludes that employability is increasingly linked to skill development and technological readiness rather than academic qualifications alone.

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