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TeamLease Services has released its Employment Outlook Report (EOR) for HY2 FY2025–26 (October–March). The report signals renewed hiring confidence across industries, with a projected 4.4% Net Employment Change (NEC). The findings reflect a decisive shift in how organisations plan and deploy talent, focusing on efficiency, capability, and return on investment.
More than half of employers (56%) intend to expand their workforce in the second half of FY2025-26, while 27% plan to maintain stability and 17% foresee rationalisation. Large enterprises are driving most of the hiring momentum, while medium and small businesses are proceeding with a more cautious, return-first approach. As India’s economy sustains a strong growth trajectory, driven by 7.8% GDP growth in Q1 FY2025–26 and GST reforms, employers are aligning their people strategies to real business outcomes, commissioning milestones, and festive demand cycles.
Sectors leading the employment surge include e-commerce and tech start-ups, logistics, and retail, with projected NECs of 11.3%, 10.8%, and 8.1% respectively. The automotive, FMCG and EV infrastructure segments are also expanding steadily, supported by policy incentives such as PLI and EMPS, localisation efforts, and strong domestic consumption. These industries together reflect the resilience and adaptability of India’s job market, where technology, consumption, and infrastructure investment continue to drive workforce demand.
Communication, basic computer skills, and critical thinking have emerged as the most in-demand skills, cited by 89%, 81%, and 78% of employers, respectively. These competencies are now seen as essential for maintaining productivity in hybrid and cross-functional teams. The workforce transformation is equally visible across locations, with Bengaluru, Hyderabad, and Mumbai leading hiring intent due to their concentration of technology, manufacturing, and service enterprises.
Balasubramanian A, Senior Vice President, TeamLease Services, said, “India’s workforce is entering a transformative phase where traditional hiring approaches are giving way to targeted, skill-driven strategies. According to our report, 61% of employers are adopting selective, performance-based approaches for entry-level roles. By embedding capability-led, performance-linked practices, companies can not only meet today’s business needs but also shape a resilient and future-ready workforce. Also, the government’s push towards formalisation through schemes such as the Employment-Linked Incentive (ELI) looks promising, with 53% of employers aware of the scheme and 64% rating skill development support as its most valuable feature. This reflects a broader trend of prioritising skill density, retention, and formalisation over short-term cost savings.”