Hiring outlook brightens for India Inc

Bengaluru: India's hiring outlook is set to improve in the final quarter of 2026, as businesses signal plans for stronger recruitment, according to the latest ManpowerGroup Employment Outlook Survey. This optimism follows a decline in hiring plans during the previous quarter, according to the study, which surveyed 3,055 Indian employers.

Around 65% of these employers anticipate increasing staff in the December quarter, up from 59% in the previous quarter. Meanwhile, 24% expect to maintain their current workforce size, while 11% expect a decrease, resulting in a net employment outlook (NEO) of 54%. The NEO is a key indicator of labor market trends.

Sandeep Gulati, managing director of ManpowerGroup India and Middle East, noted that the surge in hiring momentum is driven by organizations' efforts to build capabilities required for an evolving work landscape. Companies are focusing more on developing skills than simply expanding headcount. The survey indicates that recent hiring is targeted at areas where businesses require new capabilities, with 69% of employers planning to add staff citing changing roles and skills, including expansion into new areas, as reasons for hiring.

Furthermore, 57% of employers reported a faster time-to-hire than a year ago, largely due to the adoption of AI in hiring processes.

Across sectors, all nine surveyed areas in India are expected to increase staffing in the upcoming quarter. Finance & insurance and hospitality sectors lead the way, with NEOs of 60% and 58%, respectively. Hospitality experienced the most significant quarter-over-quarter improvement (21 percentage points), while finance & insurance benefits from stronger credit demand and the broader expansion of digital financial activity.

Group chief economist at Larsen & Toubro, Sachchidanand Shukla, attributed the hiring sentiment pickup to a still-resilient domestic demand backdrop, citing 7.8% GDP growth, a 12% year-on-year rise in exports, and an 18-22% increase in net sales and revenue among listed companies. Companies may increasingly focus on selective, productivity-led hiring to optimize resources, given varying revenue visibility in different segments.