Is India's staffing industry witnessing a 5% surge in Q2 FY26?
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Synopsis
The staffing industry in India has shown impressive growth, with a 5% quarterly increase in Q2 FY26. This reflects a significant demand for formal staffing across various sectors, indicating a positive employment landscape. Discover insights from key industry leaders about the factors driving this growth.
Key Takeaways
- 5% QoQ growth in India's staffing sector in Q2 FY26.
- 5.8% YoY growth indicates a positive employment trend.
- Significant contributions from FMCG, e-commerce, and IT sectors.
- IT staffing grew by 16% YoY, showing strong market resilience.
- 92,000 new formal jobs added over the last year.
New Delhi, Dec 17 (NationPress) The staffing sector in India experienced a remarkable quarter-on-quarter (QoQ) growth of 5 percent during the second quarter of the fiscal year 2026 (Q2 FY26), while maintaining an annual growth rate of 5.8 percent year-on-year (YoY), according to a report released on Wednesday.
This increase in employment underscores a strong demand for a formal staffing workforce across various critical sectors. Both the general and IT staffing industries have contributed positively to the overall growth pattern observed in Q2 FY26.
“The General Staffing Industry has recorded a 5 percent QoQ growth in the reviewed quarter and a 5.5 percent YoY increase, driven by demand from sectors such as FMCG, e-commerce, and retail. Moreover, the banking, financial services, and insurance sectors, aided by digital transformation and compliance hiring, have also created new job opportunities,” stated the Indian Staffing Federation in its report.
The IT staffing sector showed even stronger performance with a 16 percent YoY growth and a 4.9 percent QoQ increase, benefiting from the ongoing global demand for AI, cloud computing, and digital services, along with new requirements from Global Capability Centres (GCCs).
“Our federation members have maintained growth, adding 92,000 new formal temporary jobs over the past four quarters,” said Indian Staffing Federation President Lohit Bhatia. He emphasized that this growth momentum is primarily driven by sectors like FMCG, e-commerce, logistics, and energy. The sequential recovery in Q2 FY26 was particularly boosted by a resurgence in the IT consulting sector, largely led by tier-2 tech firms.
“India's IT sector is recovering after a prolonged downturn and is now exhibiting signs of strong resilience, strategically adapting to market dynamics with an increased scale of operations. The growth was significant at 16 percent YoY in Q2 FY26, marking the highest increase in three years,” highlighted ISF Vice President Manmeet Singh.
Point of View
The staffing industry's growth signifies a positive shift towards formal employment in India. As the economy rebounds, understanding the dynamics of this sector is crucial for stakeholders and policymakers alike. The insights gained from this report will help in strategizing for future workforce needs.
NationPress
17/12/2025
Frequently Asked Questions
What is the current growth rate of India's staffing industry?
The staffing industry in India has achieved a **5 percent** quarter-on-quarter growth in Q2 FY26.
Which sectors are driving the growth in staffing?
Key sectors contributing to staffing growth include FMCG, e-commerce, retail, and IT services.
How many new jobs were added in the last year?
The Indian Staffing Federation reported the addition of **92,000** new formal temporary jobs over the last four quarters.
What was the YoY growth for IT staffing?
The IT staffing sector recorded a **16 percent** year-on-year growth in Q2 FY26.
What does the future hold for the staffing industry in India?
As demand continues to rise across various sectors, the staffing industry is expected to sustain its growth momentum.
