June 2, 2025
Nearly half of the surveyed employers plan to hire, while 28% prefer stability, and 25% anticipate workforce reductions
Economic concerns such as inflation, slowing exports, and GDP moderation are prompting businesses to focus on productivity and cost control
Companies are prioritising digital literacy, customer experience, and communication skills to align with evolving business goals
Flexible staffing models are being adopted by 69% of employers to manage costs and scale efficiently
India’s employment market is expected to see a 2.8% increase in new job creation during the first half of FY26 (April–September), a notable drop from the 7.1% growth between October and March of FY25. This insight comes from the latest Employment Outlook Report by TeamLease Services, which surveyed more than 1,263 employers across 23 industries and 20 cities.
The report found that 47% of employers plan to expand their workforce in this period, 28% intend to maintain their current headcount, and 25% anticipate a reduction.
About 58% of employers cited economic factors such as global inflation, weakened exports, and slowing GDP growth as the primary reasons for this cautious approach. As a result, companies are moving away from blanket hiring and shifting towards a skills-based growth model, emphasising cost efficiency and employee output.
Rather than increasing headcount, businesses are seeking talent aligned with specific objectives. Core skills in demand include digital literacy (76%), customer experience management (68%), and communication (63%). This reflects a growing focus on technology readiness, service orientation, and collaborative efficiency.
To manage volatility and maintain agility, 69% of employers opt for flexi-staffing models. These arrangements allow them to quickly scale operations and control costs, which is especially crucial during the relatively subdued first half of the fiscal year. Meanwhile, gig-based employment remains integral, with 64% of organisations using this model to strengthen their sales and customer service capabilities.
Automotive and electric vehicles are among the sectors driving job creation. The automotive industry is anticipating a net employment change (NEC) of 6.9%, while the EV sector and supporting infrastructure are expected to grow by 7.1%. Government incentives and rising demand for sustainable mobility solutions are propelling this growth.
E-commerce and tech startups are also predicted to see 6.9% growth in employment, as they continue to attract talent for roles tied to innovation and scale.
Experts noted that India’s workforce is at a pivotal juncture. More adaptive and responsive strategies are replacing traditional hiring models. He stressed that agility and innovation drive business success, and the focus must shift from increasing headcount to creating lean, highly specialised teams.
According to him, building such talent ecosystems will allow organisations to keep pace with change and lead India’s workforce into a more resilient and opportunity-rich future.
Another major driver of workforce transformation is the rise of AI and automation. Companies are phasing out transactional roles in favour of positions that involve data analysis, digital transformation, and cross-functional adaptability.
Source: Economic Times