India Ranks #2 Globally in Hiring Demand for Q1 2026, Shows Strongest Job Outlook Since COVID

India is entering 2026 with extraordinary hiring momentum, emerging as the second-strongest talent market globally, according to the latest ManpowerGroup Employment Outlook Survey (MEOS). With a Net Employment Outlook (NEO) of 52%, Indian employers are signaling powerful confidence backed by economic resilience, sectoral growth, and a sharp pivot toward skill-driven workforce strategies.

Despite a decline in hiring volumes, the underlying sentiment remains robust—employers are prioritizing critical capabilities, digital adoption, and purposeful talent expansion over traditional volume-based hiring.

India’s Hiring Outlook Slows Marginally in Q4 2025 as Flexibility Becomes the New Workforce Strategy

India’s Hiring Intentions Surge 27% Despite Lower Volumes

According to the ManpowerGroup Employment Outlook Survey, Indian employers reported a 27% increase in hiring intentions compared to Q4 2025, standing 28 points above the global average. This marks the highest post-pandemic employment outlook, reflecting stronger business fundamentals, improved access to capital, and a favorable macroeconomic environment.

Economic drivers include:

• Faster-than-expected GDP growth

• Favorable monsoon boosting rural demand

• Lower oil prices easing inflation

• Minimal impact from U.S. tariffs

• Banking reforms improving foreign loan access

• Increased efforts to internationalize the rupee

These conditions have created a fertile environment for workforce expansion across India’s most dynamic sectors.

Finance, Tech, and Real Estate Lead the Hiring Charge

Across the nine measured sectors, hiring sentiment is rising nationwide. The top-performing industries for Q1 2026 include:

Finance & Insurance – 61% NEO

India tops global rankings in this sector, 29 points above the world average.

Professional, Scientific & Technical Services – 57%

The highest Outlook since tracking began in 2022.

Construction & Real Estate – 54%

Manufacturing – 53%

Information & Technology – 51%

Regionally, North India leads with a 59% NEO, followed by West (55%), South (49%), and East (48%), which recorded the quarter’s largest increase.

A Strategic Shift: Quality Over Quantity

While overall hiring sentiment is high, hiring volumes have reduced by 60% since Q2 2025. Large companies (1,000–4,999 employees) that once projected massive expansions are now hiring with precision—prioritizing high-impact roles, specialist talent, and digital competencies.

As per the ManpowerGroup Employment Outlook Survey, key drivers for hiring increases: Organizational growth (43%), Technology advancements (38%), Competitive advantage (33%) and New business areas (32%).

Notably, only 19% of employers are backfilling vacancies—signaling a move toward purposeful, future-focused workforce planning rather than routine replacement hiring.

Conversely, workforce reductions are primarily driven by automation (42%) and market changes (29%), as companies optimize operations.

According to Sandeep Gulati, Managing Director of ManpowerGroup India & Middle East, India is entering a decade-defining phase of talent evolution: “India’s hiring outlook reflects a transition from volume-led hiring to value creation. Employers are investing in the skills and technologies that will define their competitiveness for the next decade.”

He adds that 2026 will be shaped by critical skills, technological leverage, and purposeful expansion, making this a landmark moment for India’s skilled workforce.