India’s Employment Outlook for 2025-26: Job Growth Insights

A Promising Forecast Amidst Economic Changes

According to the latest Employment Outlook Report from TeamLease Services, India is poised to experience a 4.4% net increase in job creation during the second half of the 2025-26 financial year. This is a notable rise from the 2.8% growth anticipated in the first half, although it marks a decline from the 7.1% growth seen in the corresponding period last year.

The findings are based on a comprehensive survey involving over 1,251 employers across 23 sectors and 20 cities. The report indicates that a significant 56% of employers plan to expand their workforce between October 2025 and March 2026, compared to just 47% in the previous six months.

Additionally, 27% of employers anticipate maintaining their current headcount, while 17% expect to implement workforce rationalization.

Survey Insights: A Cautious Yet Optimistic Approach

The survey was executed over a period from June to August, reflecting the sentiments of the broader business community. The report highlights that large enterprises are largely driving the hiring momentum, while medium and small businesses are adopting a more cautious strategy, focusing on returns.

Against the backdrop of India’s gross domestic product growth reaching a five-quarter high of 7.8% in April-June, coupled with goods and services tax reforms, employers are aligning their hiring strategies with tangible business outcomes and seasonal demand.

Shift in Hiring Strategies: Quality Over Quantity

The emphasis in hiring has shifted decisively from volume to value. The report indicates that companies now prioritize productivity and value yield per role, signaling a significant change in recruitment dynamics.

Sectors Leading Job Creation

Several sectors are spearheading this employment surge, with sectors such as e-commerce and tech startups, logistics, and retail showing projected net employment changes of 11.3%, 10.8%, and 8.1%, respectively.

The automotive and fast-moving consumer goods sectors, alongside electric vehicle infrastructure projects, are also witnessing steady growth, fueled by policy incentives like production-linked schemes and local consumption increases.

Essential Skills in Demand

The report highlights that essential skills are evolving, with communication skills (89%), basic computer skills (81%), and critical thinking (78%) identified as the most sought-after competencies by employers.

As the nature of work transforms, these skills are increasingly recognized as vital for maintaining productivity in hybrid and cross-functional teams.

Geographical Trends in Hiring Intent

Geographically, cities like Bengaluru, Hyderabad, and Mumbai are at the forefront of hiring intent, owing to the concentration of technology, manufacturing, and service enterprises in these metropolitan areas.

A Transformative Phase for India’s Workforce

As Balasubramanian A, Senior Vice President of TeamLease Services, noted, “India’s workforce is entering a transformative phase where traditional hiring approaches are giving way to targeted, skill-driven strategies.”

The report further emphasizes that 61% of employers are adopting selective, performance-based methods for entry-level roles, signifying a pivotal shift toward capability and performance-linked practices in hiring.

Conclusion: Adapting to Future Needs

The Employment Outlook Report indicates that workforce strategies are increasingly shaped by changing consumption patterns, sector priorities, and the rise of artificial intelligence-driven technologies.

Organizations are concentrating on creating agile, skill-driven teams with performance-linked recruitment methods, which are essential for developing a workforce capable of navigating dynamic market opportunities and ensuring long-term growth.