India’s job market is set for robust growth, with 56% of employers planning to expand their workforce between October 2025 and March 2026, according to the latest TeamLease Services Employment Outlook Report. Another 27% aim to maintain their current headcount, while 17% plan rationalisation, indicating a more precision-led approach to hiring.
Sectors Driving Employment Growth
The hiring momentum is being led by large enterprises, while small and medium businesses remain cautious, focusing on profitability first. The e-commerce and tech startup sector leads the surge with a projected Net Employment Outlook (NEC) of 11.3%, followed closely by logistics (10.8%) and retail (8.1%).
Other sectors like automotive, FMCG, and EV infrastructure are also expanding, driven by policy incentives such as the PLI and EMPS schemes, increasing localisation, and rising domestic demand. Together, these industries reflect India’s resilient and adaptive workforce landscape.
Skill-Driven Hiring Takes Center Stage
The report highlights a strong shift toward capability-based hiring, with communication (89%), basic computer skills (81%), and critical thinking (78%) cited as the top three skills in demand. These are crucial for hybrid and cross-functional teams, helping maintain productivity in evolving work environments.
According to Balasubramanian A, Senior VP at TeamLease Services, “India’s workforce is entering a transformative phase where traditional hiring is giving way to targeted, skill-driven strategies.”
Bengaluru, Hyderabad, and Mumbai Lead Hiring Intent
Hiring intent remains highest in Bengaluru, Hyderabad, and Mumbai, given their concentration of technology, manufacturing, and service-based enterprises. Additionally, 61% of employers are adopting selective, performance-based approaches for entry-level roles to build a future-ready workforce.
The report also notes that government initiatives like the Employment-Linked Incentive (ELI) are gaining traction, with over half of employers recognising their role in strengthening formalisation and skill development across industries.
