Employers in India have reported a remarkably robust job market for the first quarter of 2026, reflecting an increasing readiness of organizations to invest in skills, technology, and talent, according to a report released on Tuesday.
The analysis by ManpowerGroup India, derived from a survey involving 3,051 employers conducted in October 2025, disclosed a Net Employment Outlook (NEO) of 52 percent. This figure accentuates a strategic transformation prioritizing quality over mere quantity in hiring practices.
The report attributed the unexpectedly rapid growth of the Indian economy to several factors. Notably, a beneficial monsoon season bolstered rural demand.
Additionally, decreased oil prices, minimal repercussions from US tariffs, and reforms in the banking sector that facilitated foreign loan access contributed significantly to corporate expansion and job creation.
Moreover, initiatives aimed at internalizing the Indian rupee for cross-border trade are gaining momentum. This strategy seeks to reduce reliance on US dollars, which is anticipated to yield long-term benefits for the economy.
Given these dynamics, the hiring outlook among Indian employers appears promising for the immediate future, as the report indicates.
The outlook for hiring in India is not only robust but also signifies a transformative phase of economic confidence and capability enhancement.
These trends vividly illustrate India’s shift from volume-oriented hiring to value creation: organizations are channeling investments into the skills, technologies, and talent frameworks that will underpin their competitive edge in the coming decade,” remarked Sandeep Gulati, Managing Director of ManpowerGroup India and the Middle East.
Demand is particularly strong in sectors such as finance, professional services, manufacturing, and real estate, highlighting that “employers are actively gearing up for a more digital, regulated, and innovation-centric economy,” Gulati elaborated.
“As we approach 2026, India’s talent market will be shaped around three core principles: critical skills, technological leverage, and purposeful expansion,” Gulati asserted.
The report also indicated that Indian employers across all nine sectors expect to increase staffing levels in the first quarter of 2026.
- A significant 63 percent of employers predict an uptick in hiring
- 24 percent expect to maintain their current workforce
- 11 percent foresee a reduction in staff
- 2 percent remain uncertain about their hiring plans
Despite a generally favorable outlook over the past year, there has been a decline in hiring volumes.
In Q1 2026, the average company is projected to expand its workforce by 65 employees—a notable decrease of 60 percent from the 162 employees recorded in Q2 2025.
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