Hiring surges 23% in 2025 as India prepares for a 1.28-crore job expansion in 2026: foundit

India’s job market closed 2025 on a strong note, recording a +23% year-on-year increase in hiring activity, according to the foundit insights tracker (fit) by leading jobs and talent platform, foundit. This surge reflects robust employer confidence, steady recruitment across major industries, and the rising prominence of Tier-2 and Tier-3 cities as strategic talent hubs. However, growth in the second half of the year moderated to +4% over six months, indicating a shift toward more calibrated, productivity-led hiring.

“2025 shaped up as a year of strong expansion but disciplined hiring. We witnessed the decentralisation of talent, with Tier-2 hubs becoming operational anchors for tech, BFSI, logistics and retail,” said Anupama Bhimrajka, VP, Marketing, foundit. “As we head into 2026, demand for AI-ready skills, strategic leadership, and mid-career digital talent will keep momentum high despite measured intake in some sectors.”

HIRING TRENDS FOR 2025

NPOs, Consumer Electronics, and Healthcare & Pharmaceuticals Emerge as the Fastest-Growing Industries (YoY)

With 24 out of 27 industries reporting a surge in recruitment activity over the past year, the data points to a broad-based revival in hiring sentiment. Beyond the headline growth sectors, this momentum underscores how India’s job market is being powered by a mix of impact-led roles, manufacturing expansion and digital-first business models reflecting a labour market that is not just recovering but evolving at speed.

Senior Management and IT Lead India’s Functional Hiring Growth

With 11 of 13 functions reporting sustained annual growth, 2025 marks a clear revival in demand for specialised and leadership talent. Senior Management and IT roles are seeing the strongest momentum, driven by digital transformation, strategic expansion and the rise of AI-enabled business models. The surge in mid-to-senior level hiring across HR, Finance and Sales indicates that companies are prioritising experienced professionals who can steer execution, strengthen governance and accelerate technology adoption in a rapidly evolving market.

Tier- 2 Cities Lead India’s Next Wave of Job Market Growth

India’s job market in 2025 shows strong geographic momentum, with Tier- 2 cities like Coimbatore and Ahmedabad emerging as high-growth talent hubs. Bengaluru and Hyderabad continue to lead overall hiring driven by tech, manufacturing and BFSI expansion, while Mumbai and Chennai reinforce their strength in finance, marketing and consumer-focused roles. The varied growth patterns across cities reflect a more distributed hiring landscape, with companies widening their talent search beyond traditional metros to support scale and regional market penetration.

OUTLOOK FOR 2026

• India’s hiring outlook for 2026 signals steady growth, with overall recruitment expected to rise by 2.3 percentage points, translating to an estimated 1.28 crore jobs, and hiring concentrated in the first half of the year.

• Demand will be strongest for mid-to-senior talent in digital, AI, cloud, data and cybersecurity, driven by continued enterprise transformation.

•Tech, BFSI, manufacturing, infrastructure and renewable energy are set to lead hiring, with emerging sectors like fintech, health tech and electric mobility creating niche opportunities.

•Hiring is expected to expand beyond metros as companies develop talent hubs in Tier 2 cities to optimise costs and access wider talent pools.

•Overall, 2026 is shaping up to be a skills-led year of hiring, as growth expands beyond metros and strengthens India’s position as a resilient and future-ready talent market.

Trends in Focus for 2026

Tech and Semiconductor Push

Demand will remain strongest in AI, cloud, data engineering, cybersecurity, and embedded systems, supported by continued GCC expansion and early-stage semiconductor design activity in Bengaluru, Hyderabad, and select Tier-2 hubs.

Leadership and Mid-Career Demand

Hiring is expected to continue favouring mid-to-senior professionals who can lead digital programmes, manage transformation roadmaps, and drive cost-efficient scaling as companies shift from pilot projects to enterprise-wide execution.

Tier-2 Talent Diversification

Firms will increasingly be expanding support, operations, and select tech functions into Tier-2 cities to optimise cost structures and tap into growing engineering and digital talent pools outside metros.

Startups Regain Momentum

Renewed funding across SaaS, fintech, health tech, and AI-first ventures is set to drive selective hiring in product, engineering, growth, and revenue roles, even as startups remain disciplined on non-core functions.

Top Hiring Industries in 2026

India’s 2026 hiring outlook is led by Consumer Electronics and Media at 5 percentage points, followed by Healthcare, Life Sciences, Pharma, and NGOs. Core sectors and services are expected to expand steadily, while trade-linked industries see relatively slower growth.

Industry Forecast (percentage points) Consumer Electronics +5% Media & Entertainment +5% NGO/Social Services +4% Healthcare +4% Engineering m +3%

Top Hiring Locations in 2026

In 2026, Bengaluru and Hyderabad are set to lead hiring with 3 percentage points growth, driven by tech, GCCs, AI, cloud, and semiconductor operations. Mumbai, Chennai, Pune, Kochi, and Tier-2 cities such as Coimbatore, Jaipur, and Baroda are expected to record a steady 2 percentage points growth, while Delhi-NCR remains flat. Overall, the trend reflects India’s shift toward a distributed, multi-city talent model.