India Inc plans to hire in December quarter, but at a slower pace
The net employment outlook-seen as a bellwether of labour market trends-in India for the next quarter is 40%, seven percentage points lower than the current quarter, but up 18 percentage points year-on-year, according to the latest ManpowerGroup Employment Outlook Survey.
About 55% of 3,149 Indian employers who were asked about their hiring plans for the December quarter said they would hire more people, while 12% expected a decrease in hiring intent or had no plans to backfill, 31% reported no change and 2% were unsure.
The net employment outlook is the difference between companies looking to hire and those expecting a fall in headcount or hiring numbers, after factoring in seasonal adjustments.
India continues to report the second-highest outlook globally, 17 percentage points above the global average. Around 43% of Indian employers said company expansion is the top reason for staffing increases, followed by tech advancements requiring more expertise (36%) and new ventures requiring new roles (35%).
Although India’s employment outlook has eased slightly, the labour market’s fundamentals remain strong, with sectors such as energy & utilities, financials & real estate and technology continuing to drive hiring.Energy & utilities leads with an outlook of 59%, registering an increase of 18 percentage points since the previous quarter and 74 percentage points since October-December 2024. India is the front-runner for its employment hiring expectations, above the sector’s global average NEO by 39 percentage points.
Financial & real estate emerges as the second leading sector in hiring intentions at 52%, marking an 18 percentage point year-over-year increase for the December quarter.
Information technology (48%), healthcare & life sciences/transport, logistics and automotive at 44% outlook each are among the others with robust hiring outlooks.
Trade-related global uncertainties and US announcements with respect to India have weighed on sentiments during the quarter explaining the QoQ weakness. However, a lot of manufacturers/ exporters frontloaded their exports to US before the deadline kicked in and domestic rural consumption demand improved and that could partially explain the YoY rise, said Sachchidanand Shukla, group chief economist at Larsen & Toubro.
“The outlook improvement will be a function of multiple factors, that is clarity on trade relations and tariffs from US could help export-related sectors and the implementation of the GST rate rationalisation could support domestic demand-related discretionary consumption sectors,” Shukla added.
The survey also revealed that employers face mounting talent challenges. Nearly half (46%) cite attracting qualified candidates as their biggest obstacle, while 42% see work-life balance as the most effective retention strategy. Among those reducing staff, nearly one-third (38%) cite automation as the main driver for role reductions.
“A key trend emerging is the increasing reliance on workforce flexibility, with employers balancing permanent, temporary and consultant talent to stay agile in a dynamic environment. As businesses manage wage pressures, technological shifts and evolving employee expectations, adaptive workforce strategies will be central to sustaining India’s long-term competitiveness,” said Sandeep Gulati, managing director, ManpowerGroup India and Middle East.
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