Is India Experiencing Remarkable Hiring Growth in Q1 2026?
Synopsis
Key Takeaways
- Strong Job Market: India showcases a robust job market in Q1 2026.
- NEO of 52%: The Net Employment Outlook indicates a focus on quality hiring.
- Sector Demand: High demand anticipated in finance, manufacturing, and real estate.
- Employer Sentiment: 63% of employers expect to increase hiring.
- Workforce Growth: Typical companies project a workforce increase of 65 employees.
New Delhi, Dec 9 (NationPress) Employers in India are witnessing an exceptionally robust job market in the first quarter of 2026, as businesses are increasingly eager to invest in skills, technology, and talent, according to a report released on Tuesday.
The study conducted by ManpowerGroup India, which surveyed 3,051 employers throughout India in October 2025, revealed a Net Employment Outlook (NEO) of 52 percent, highlighting a strategic move towards prioritizing quality over quantity.
Furthermore, the report indicated that the Indian economy is growing at a faster-than-expected pace due to favorable monsoon conditions that boosted rural demand, decreased oil prices, the minimal influence of US tariffs, and banking reforms that facilitated easier access to foreign loans, thus supporting business expansion and job creation.
In addition, initiatives have been intensified to promote the use of the Indian rupee in cross-border trade, aiming to lessen reliance on US dollars, which is anticipated to provide long-term benefits to the economy.
Based on these indicators, the hiring outlook for Indian employers remains optimistic for the upcoming period, as noted in the report.
“India's hiring prospects are not just promising; they signify a new era of economic confidence and capability enhancement. These trends reflect India's shift from volume-based hiring to value-driven strategies: organizations are investing in the skills, technologies, and talent frameworks that will shape their competitiveness for the next decade,” stated Sandeep Gulati, Managing Director of ManpowerGroup India and the Middle East.
The report highlighted strong demand in sectors such as finance, professional services, manufacturing, and real estate, indicating that “employers are actively prepping for a more digital, regulated, and innovation-focused economy,” as per Gulati.
“As we approach 2026, India will mold its talent market around three core principles: critical skills, technological leverage, and deliberate growth,” Gulati added.
Moreover, the report noted that employers across all nine sectors expect to increase staffing levels in Q1 2026.
A significant number of employers (63 percent) foresee an uptick in hiring, while 24 percent expect to maintain their current workforce, 11 percent predict a reduction, and 2 percent are uncertain.
Despite a favorable outlook over the past year, hiring volumes have seen a decline.
In Q1 2026, a typical firm's total workforce is projected to rise by 65 employees, reflecting a 60 percent decrease since tracking began in Q2 2025, when the figure was at 162.