56 pc Indian employer intend to expand their workforce in H2 FY26: Report

New Delhi, Oct 15 (IANS) More than half of employers (56 per cent) in India intend to expand their workforce in the second half of the current financial year (H2 FY26), while 27 per cent plan to maintain stability and 17 per cent foresee rationalisation, a report said on Wednesday.

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 per cent 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," TeamLease Services, a leading staffing firm, said in its report.

Sectors leading the employment surge include e-commerce and tech start-ups, logistics, and retail, with projected NECs of 11.3 per cent, 10.8 per cent, and 8.1 per cent, respectively, revealed the report, based on a survey of 1,251 employers across 23 industries and 20 cities, conducted from June to August.

The automotive, fast moving consumer goods (FMCG) and electric vehicle (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, the report noted.

“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 per cent 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," said Balasubramanian A, Senior Vice President, TeamLease Services.

Also, the government’s push towards formalisation through schemes such as the Employment-Linked Incentive (ELI) looks promising, with 53 per cent of employers aware of the scheme and 64 per cent rating skill development support as its most valuable feature, he added.

Communication, basic computer skills, and critical thinking have emerged as the most in-demand skills, cited by 89 per cent, 81 per cent, and 78 per cent 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, the report highlighted.

--IANS

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