Economic growth and employment do not always move together, especially in technology driven sectors. As industries evolve, efficiency improves and output increases. However, this progress can slow down job creation, creating new challenges for policymakers and workforce planning.
The Telangana Socio Economic Outlook 2025 highlights a notable trend in the state’s IT sector. Exports have risen steadily from ₹2,41,275 crore in 2022–23 to ₹3,12,941 crore in 2024–25. This reflects strong and consistent growth in the industry.
Despite this growth, employment figures show a slight decline. Jobs reduced by around 7,231 over the past year. The workforce dropped from 9,46,285 in 2023–24 to 9,39,054 in 2024–25, marking a modest 0.76 percent decrease.
This gap between growth and employment raises important questions. KTR has pointed to improved efficiency, possibly due to AI and automation, as a key factor. Companies are now producing more without expanding their workforce at the same pace.
At the same time, concerns about administrative inefficiency have also been discussed. This suggests that policy execution could be influencing employment trends. Both technological and governance factors may be shaping the current situation.
Overall, this trend reflects a shift in how the IT sector operates rather than a decline. However, continued growth without job creation may become a concern. The focus may need to move towards reskilling and creating new employment opportunities.
