Fortified Hiring Momentum Anticipated in H2 of FY27
Hiring activity is poised to gain substantial traction in the latter half of the fiscal year 2026-27, as 60 percent of employers signal intentions to enlarge their workforce. This was disclosed in the Employment Outlook Report published by TeamLease on Thursday.
The report projects a Net Employment Change (NEC) of 5.4 percent for the period from October 2026 to March 2027, a notable increase from 4.7 percent during the first half of the financial year. This figure marks the zenith of employment growth observed in the last three half-years.
Surveying 1,239 employers across 23 diverse industries and 20 cities, the fieldwork spanned July and August of 2026.
E-commerce and technology start-ups are slated to witness the most pronounced employment growth in H2 of FY27, anticipating an NEC of 12.6 percent.
They are succeeded by the travel and hospitality sector at 12.3 percent, with retail following closely at 10.3 percent.
The automotive sector, along with electric vehicles (EVs) and their infrastructure, follows at 10.1 percent and 9.7 percent, respectively.
BPO stands as the sole sector reporting a pessimistic employment outlook, with a net employment change of -0.2 percent.
Educational services maintained a marginally positive forecast of 0.1 percent, while media and entertainment, as well as textiles, recorded changes of 0.3 percent and 0.8 percent, respectively.
Balasubramanian A, Senior Vice President of TeamLease Services, articulated that “the BPO sector has faced challenges even before the rise of AI.
Its vulnerability to automation is exacerbated due to the repetitive nature of many tasks, particularly in call centers. Consequently, the outlook remains bleak, and a swift recovery seems unlikely.”
In examining the propensity to hire, large enterprises exhibited a more robust hiring inclination compared to smaller businesses in the latter half of FY27.
Approximately 66 percent of large companies aim to augment their workforce, juxtaposed with 59 percent of medium-sized enterprises. Start-ups and micro and small enterprises reflect the lowest commitment at 53 percent.
Balasubramanian noted, “Large corporations often possess the financial resources necessary to invest in technology, thereby attaining greater productivity.
Consequently, larger firms typically generate higher revenue or profit per employee compared to their smaller counterparts. Given India’s substantial working-age population, fostering the growth of MSMEs is vitally important.”
Functionally, the sales and marketing sectors appear to expect the most vigorous hiring intent, with 64 percent of employers indicating plans to expand these teams.
Engineering and IT follow closely at 50 percent and 48 percent, respectively. Blue-collar job prospects are pegged at 42 percent, while finance, back-office administration, and human resources show lower expansion intentions.
Bengaluru has emerged as the prime city for workforce expansion, identified by 68 percent of respondents. This is followed by Hyderabad at 61 percent, Pune at 60 percent, Mumbai at 55 percent, and Delhi at 53 percent.
Among desired competencies, digital literacy ranks highest, cited by 59 percent of employers planning workforce augmentation.
Communication skills, alongside teamwork and collaboration, are noted by 51 percent and 48 percent, respectively, while adaptability is necessary for 44 percent.
The report also highlighted the impending new labor codes as a significant factor influencing employer costs and compliance.
Fifty-nine percent of respondents foresee an increase in compliance and payroll administration efforts resulting from these changes, while 35 percent expect adjustments in basic compensation and allowances.
Balasubramanian emphasized that the overarching impact remains constant—compliance expenses have escalated. This uptick can be treated as a one-time occurrence.
The financial year in which these changes are implemented may witness an uptick in costs, adversely affecting margins; however, normalcy is anticipated subsequently as it becomes ingrained in the baseline process.
Most of our clients have already enacted these changes, while others are exploring viable strategies for implementation.
Moreover, the adoption of artificial intelligence has gained considerable traction among surveyed employers, although the depth of integration remains superficial.
A significant 85 percent reported some engagement with AI or generative AI tools within their workforce; however, merely 13 percent indicated that such tools are utilized by over half of their employees.
Source link: Business-standard.com.
