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

Hiring sentiment in India slowed slightly heading into the final quarter of 2025, according to the latest ManpowerGroup Employment Outlook Survey (MEOS). Employers reported a Net Employment Outlook (NEO) of 40%, representing a 7% decline from the previous quarter. Despite the dip, India continues to post the second-highest hiring outlook globally, standing 17 points above the global average.

Sectors Powering Hiring

The report highlights strong sectoral momentum:

• Energy & Utilities lead the pack with a record 59% NEO, up 18% from last quarter.

• Financials & Real Estate follow at 52%, their strongest outlook since Q4 2022.

• Information Technology posted a solid 48%, underscoring India’s digital economy resilience.

Other growth areas include Healthcare, Life Sciences, Transport, Logistics, and Automotive — each reporting a 44% outlook.

Regional Snapshot

ManpowerGroup Employment Outlook Survey shows that regionally, North India remains the most competitive at 45%, though slightly weakened. The South (39%) showed improvement, while the East (32%) recorded a significant decline of 33% from the previous quarter.

Workforce Flexibility in Focus

A key theme this quarter is workforce flexibility. Employers are increasingly blending permanent, temporary, and consultant staff to balance rising wage pressures, shifting technology demands, and evolving employee expectations.

• Permanent staff remain critical in administration (50%), customer service (45%), and operational support (47%).

• Temporary workers are catching up, often hired to handle specialized short-term projects.

• Consultants are being used to inject niche expertise without long-term commitments.

“Although India’s hiring outlook has eased slightly, the fundamentals remain strong. Sectors like Energy, Real Estate, and Technology continue to drive employment while workforce agility is becoming the cornerstone of competitiveness,” said Sandeep Gulati, Managing Director, ManpowerGroup India & Middle East.

India’s Hiring Outlook for Q3 2025 Remains Strong at 42%, Driven by Energy and Tech Sectors

Challenges Ahead

While 55% of employers plan to increase headcount, 46% cite difficulty attracting qualified candidates as their biggest hiring challenge, as per the ManpowerGroup Employment Outlook Survey. Work-life balance emerged as the top retention strategy (42%), particularly in Consumer Goods & Services, Healthcare, and IT.

Automation continues to reshape the market, with 38% of employers citing it as a driver of workforce reductions. At the same time, 36% are actively hiring to keep pace with technological change.

Globally, India remains a bright spot. Large firms (1,000–4,999 employees) reported an optimistic 54% outlook, double the global average of 27%. This underscores India’s structural growth momentum despite softer foreign investment sentiment.

With GDP growth projected at 6.5% in 2025, driven by services, India’s labor market outlook remains cautiously optimistic — balancing economic opportunity with workforce transformation. Access the ManpowerGroup Employment Outlook Survey details here.