Corporate leaders in India keep complaining about a talent crunch. A recent ManpowerGroup survey found that 80% of employers in India are struggling to fill roles in 2025; higher than the global average of 74%.
But scroll through LinkedIn or the news show us a different picture. Thousands of capable, willing individuals are sitting on the sidelines. They are ready to work, yet they are systematically excluded from the formal job market. These people form India’s hidden workforce, and it is time we ask why.
The term hidden workers was popularised by researchers at Harvard Business School. It refers to people who have the right skills and a strong desire to work but keep getting filtered out by modern hiring systems. In the Western context, this is often seen as an HR optimization issue. But in India, it is much deeper. Here, the hidden workforce is trapped by social biases, rigid norms, and outdated recruitment practices.
Who are India’s hidden workers? First, they are returning mothers. India has one of the lowest female labour force participation rates in the world. When a professional woman takes a break to care for her family, corporate India punishes her. That resume gap becomes a permanent red flag, turning an experienced professional into a hidden worker overnight.
{{/usCountry}}Who are India’s hidden workers? First, they are returning mothers. India has one of the lowest female labour force participation rates in the world. When a professional woman takes a break to care for her family, corporate India punishes her. That resume gap becomes a permanent red flag, turning an experienced professional into a hidden worker overnight.
{{/usCountry}}Second, they are neurodivergent minds. Many individuals possess high analytical or technical skills but struggle with traditional interview norms like maintaining eye contact or making small talk. They are rejected not because they lack ability, but because our hiring systems refuse to accommodate different ways of thinking.
Third, they are self-taught gig workers and those navigating the informal economy. Millions have developed excellent problem-solving and project-management skills through sheer entrepreneurial survival. According to the International Trade Union Confederation, 50 top multinational companies rely on a hidden global workforce of 116 million people, many of them in India. Yet formal recruiters overlook them simply because they lack a glossy degree from a premier institute.
Much of the blame goes to the very technology built to streamline hiring. Applicant Tracking Systems (ATS) and algorithmic tools now screen resumes ruthlessly. They prioritise risk aversion over potential. They filter out candidates with minor gaps or unconventional backgrounds, long before a human being ever sees the application.
This year, over 70% of recruiters in India are turning to AI tools. But here is the catch—they now claim they want to use AI to find hidden talent. The problem is, if we do not reprogramme these algorithms to prioritise potential over pedigree, they will simply automate the same old biases more efficiently. This is especially dangerous in India, where 84% of the IT sector is desperate for new skills. It is madness to keep fishing in the same overfished pool while ignoring a vast ocean of untapped talent.
The solution is not complicated. Companies must audit their hiring algorithms and remove biased filters that screen out gaps and non-traditional backgrounds. They must redesign interview processes to assess actual skills rather than social comfort. Companies should actively partner with organisations that train and connect returning mothers, neurodivergent individuals, and gig workers to formal employment.
Data consistently shows that hidden workers often outperform their peers. They demonstrate greater loyalty, higher retention rates, and stronger work ethics. When given a fair opportunity, they pay back the trust many times over. It is time for corporate India to stop crying wolf over a talent shortage. The truth is that the shortage does not exist. The talent is already here: Waiting, willing, and capable. It is just hidden and it is time to bring it into the light.
(The views expressed are personal)
This article is authored by Hrishit Roy, doctoral scholar and Arunima KV, assistant professor, HR, OB and communications, TA Pai Management Institute, Manipal Academy of Higher Education, Manipal, Karnataka.