Indian employers' hiring outlook robust despite global headwinds
Bengaluru: India's job market is showing resilience despite escalating geopolitical tensions, trade disruptions and concerns about the impact of artificial intelligence. More Indian employers plan to hire in April-June 2026, with the country's hiring outlook for the coming quarter projected to be the strongest globally, according to the latest ManpowerGroup Employment Outlook Survey.
Around 74% of more than 3,000 Indian employers surveyed between January 1 and February 3 said they plan to hire more people in the June quarter, while 6% expect a decline in hiring or do not plan to backfill roles. This puts the net employment outlook-a bellwether of labour market trends-at 68%, representing the difference between companies planning to hire and those expecting a decline.
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Hiring sentiment is 37 percentage points higher than the global average net employment outlook (NEO) of 31%. It is also 25 percentage points higher than a year earlier and up 16 percentage points from the previous quarter.
Experts attribute the uptick to resilient domestic demand, business confidence and expectations of a corporate earnings recovery. However, they caution that rising oil prices and evolving geopolitical risks could still affect hiring plans.
"While on-ground perception may appear cautious due to global uncertainties, the hiring outlook reflected in our data captures employer sentiment and forward-looking business plans that were largely shaped before the recent geopolitical developments," said Sandeep Gulati, managing director, India & Middle East, ManpowerGroup.
"However, India's strong net employment outlook is driven by resilient domestic demand, continued growth in the services sector and improving business confidence supported by current economic reforms and expanding trade partnerships," he said. Following the post-pandemic recovery phase, many organisations have entered a more strategic hiring cycle, focusing on sustainable growth and critical skills.
"At the same time, favourable economic growth projections, lower inflation pressures and policy initiatives that improve access to capital are encouraging companies to plan workforce expansion," Gulati said. While employers remain mindful of global volatility, the overall sentiment suggests that businesses in India continue to see opportunities for growth, which is reflected in their hiring intentions for the coming quarter, he added.
Sachchidanand Shukla, group chief economist at Larsen & Toubro, said India's hiring outlook remained positive as both global and domestic macroeconomic conditions were relatively stable when the survey was conducted.
He noted that India's economy had grown in the 7-7.5% range for three consecutive years, with benign inflation, supportive monetary policy and government capital expenditure sustaining momentum.
"Expectations of a recovery in corporate earnings after 18-20 months of lacklustre numbers, along with fiscal and monetary engines running strong, also strengthened business confidence and hiring sentiment," said Shukla. However, he cautioned that sentiment could shift and hiring plans may be recalibrated with crude oil prices at above $100 a barrel and ongoing geopolitical tensions.
Around 74% of more than 3,000 Indian employers surveyed between January 1 and February 3 said they plan to hire more people in the June quarter, while 6% expect a decline in hiring or do not plan to backfill roles. This puts the net employment outlook-a bellwether of labour market trends-at 68%, representing the difference between companies planning to hire and those expecting a decline.
Also Read: India Inc bats for more women to play long game
Hiring sentiment is 37 percentage points higher than the global average net employment outlook (NEO) of 31%. It is also 25 percentage points higher than a year earlier and up 16 percentage points from the previous quarter.
"While on-ground perception may appear cautious due to global uncertainties, the hiring outlook reflected in our data captures employer sentiment and forward-looking business plans that were largely shaped before the recent geopolitical developments," said Sandeep Gulati, managing director, India & Middle East, ManpowerGroup.
"However, India's strong net employment outlook is driven by resilient domestic demand, continued growth in the services sector and improving business confidence supported by current economic reforms and expanding trade partnerships," he said. Following the post-pandemic recovery phase, many organisations have entered a more strategic hiring cycle, focusing on sustainable growth and critical skills.
"At the same time, favourable economic growth projections, lower inflation pressures and policy initiatives that improve access to capital are encouraging companies to plan workforce expansion," Gulati said. While employers remain mindful of global volatility, the overall sentiment suggests that businesses in India continue to see opportunities for growth, which is reflected in their hiring intentions for the coming quarter, he added.
Sachchidanand Shukla, group chief economist at Larsen & Toubro, said India's hiring outlook remained positive as both global and domestic macroeconomic conditions were relatively stable when the survey was conducted.
He noted that India's economy had grown in the 7-7.5% range for three consecutive years, with benign inflation, supportive monetary policy and government capital expenditure sustaining momentum.
"Expectations of a recovery in corporate earnings after 18-20 months of lacklustre numbers, along with fiscal and monetary engines running strong, also strengthened business confidence and hiring sentiment," said Shukla. However, he cautioned that sentiment could shift and hiring plans may be recalibrated with crude oil prices at above $100 a barrel and ongoing geopolitical tensions.
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