The salary divide in recruitment is getting deeper
We all know - we are in the middle of a market disruption that happens once in 20-25 years.
As I said in this LinkedIn post), there’s an interesting debate happening about whether AI will increase recruiter salaries or push them down.
Data from multiple 2025 salary reports indicates that recruiters specializing in technical talent with AI proficiency are commanding premium salaries.
Technical Recruiters hiring for AI, with AI: Salaries UP ↗️
The premium in tech hiring is happening in newer skill areas such as AI, security and Cloud and recruiter salaries are no exception.
Recruiters with expertise on these roles are commanding premium salaries.
Further, many informal sources also indicate that technical recruiters who’ve upskilled with AI tools are seeing 20-40% hikes when switching jobs.
Volume/General Recruiters: Salaries FLAT or DOWN ↘️
Conversely, recruiters handling high-volume, entry-level positions or general roles are experiencing salary stagnation or even declines. One recruitment leader at a major IT services firm said privately: “We’ve reduced our entry-level recruitment team by 30% in the last year as AI has automated most of the screening and initial outreach.”
The bottom line
Just like I observed with software engineers, we’re seeing a job reshuffle, not a job shrinkage. As recruitment is getting automated, new roles focused re emerging—and they’re paying more than before.
What’s your experience? Are you seeing this divide in the recruitment profession in your organization?
From CutshortHQ
We are moving to Bangalore!
Are you in Bangalore?
I have lost count of how many times people have asked this. Investors, customers, talent and who not.
We haven’t had a strong reason to setup a base here (apart from 🍺), but with our AI+human powered offerings like Sourcing Assistant, it’s becoming clear that we need to be closer to our customers.
So, Bangalore here we come. Just 2 months and we are excited for more gatherings like this:
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Special section
A brief history of job market reshuffles
Every decade or so, the job market experiences a seismic shift that transforms recruitment. As we navigate the current AI disruption, here’s a quick look at previous “job market earthquakes”:
The Y2K Boom (1997-2000)
The millennium bug created unprecedented demand for IT professionals, launching India’s tech industry. Software exports jumped from $1.8B to $5.7B, with IT salaries rising 25-40% annually. Recruitment transformed from informal networks to structured processes.
The Dot-Com Crash (2000-2002)
The internet bubble burst, freezing tech hiring overnight. Tech unemployment jumped from 2% to 6.5%, compensation shifted from equity-heavy to salary-focused, and many recruiters specialized in tech suddenly found themselves jobless.
The Outsourcing Revolution (2002-2008)
Western cost-cutting created a boom in India, with IT services growing from $9.5B to $52B. Campus recruitment became dominant, and standardized salary bands emerged as the norm.
The Global Financial Crisis (2008-2010)
The Lehman collapse triggered hiring freezes, recruiter layoffs, and salary stagnation. The power shifted dramatically to employers, with candidates accepting offers they would have rejected pre-crisis.
The COVID-19 Disruption (2020-2022)
The pandemic normalized remote work, sparked the “Great Resignation,” and widened compensation disparities between in-demand and traditional roles. Tech salaries jumped 15-30% as digital transformation accelerated.
The AI Reshuffling (2023-Present)
AI is creating a two-tier market—AI-savvy professionals command premium compensation while traditional roles face automation. Rigid salary bands are giving way to multi-dimensional frameworks, and the gap between highest and lowest earners within the same profession is widening dramatically.
Throughout history, each disruption has created both winners and losers. Where will you position yourself in this latest reshuffling?
Hope you enjoyed this edition. See you next week!
With ❤️
Nikunj
CEO at Cutshort
The future of recruiting is “human”.