India’s hiring outlook set to rebound in December quarter; finance, hospitality lead: Survey

India’s hiring outlook is set to rebound in the final quarter of 2026, with employers signalling stronger recruitment plans for October-December after a moderation in the previous quarter, according to the latest ManpowerGroup Employment Outlook Survey.

About 65% of the 3,055 Indian employers surveyed expect to increase their workforce in the December quarter, up from 59% in the September quarter. Another 24% plan to maintain current staffing levels, while 11% anticipate a decline.

The resulting net employment outlook (NEO), a key indicator of labour market sentiment, stands at 54%. The measure, which captures the difference between employers planning to increase staffing and those expecting a decline, has risen six percentage points quarter-on-quarter and 11 percentage points from a year earlier.

India now ranks as the most optimistic labour market among all markets covered by the survey, with its hiring outlook 25 percentage points above the global average.

According to the report, the improvement in hiring sentiment comes amid stronger business confidence and growing demand for new skills as companies adapt to changes in technology and the workplace.

“Today’s hiring momentum reflects organisations’ efforts to build the capabilities required for an evolving world of work. Across India, employers are reshaping their workforces with greater intent, placing a stronger emphasis on capability building than on headcount growth alone,” said Sandeep Gulati, managing director, ManpowerGroup India and Middle East.

The survey suggests that hiring is increasingly being driven by the need for new capabilities rather than simply workforce expansion. Among employers planning to add staff, 69% cited changing roles and skills—including expansion into new business areas and demand for new expertise driven by advancing technology—as reasons for hiring.

Recruitment processes are also speeding up. About 57% of employers said their time-to-hire has improved compared with a year ago, with the adoption of artificial intelligence in recruitment processes emerging as a key driver.

Hiring sentiment is positive across all nine sectors covered in the India survey, with each expected to increase staffing in the December quarter.

Finance and insurance leads the sectoral rankings with an NEO of 60%, followed by hospitality at 58% and the information sector at 57%.

Hospitality posted the sharpest quarter-on-quarter improvement, with its hiring outlook rising 21 percentage points. The finance and insurance sector, meanwhile, continues to benefit from stronger credit demand and the broader expansion of digital financial activity.

Employers with 1,000 to 4,999 employees are the most optimistic about hiring, reporting an NEO of 58%. Their outlook is up eight percentage points from the previous quarter and five percentage points from a year earlier.

Employment expectations improved across all organisation sizes compared with the September quarter, except among employers with 10 to 49 employees, where the outlook declined by two percentage points.