New Delhi, March 10 (NationPress) The hiring landscape for Indian employers has notably surged for the second quarter of 2026, as the net employment outlook (NEO) reaches a historic high, according to a report released on Tuesday.

As per a study conducted by ManpowerGroup, the NEO for Q2 (April-June) is now at an impressive 68 percent, reflecting an increase of 17 percentage points from the previous quarter and a remarkable 24 points year-on-year (YoY).

The findings indicate that businesses are reaping the benefits of tax reforms introduced under the Goods and Services Tax (GST) system, alongside strong expectations for economic growth in 2026.

The finance and insurance sectors emerged as the leaders in hiring outlook, boasting a solid 71 percent figure, which is an increase of 8 points from the last quarter and 26 points YoY.

The utilities and natural resources sector experienced the most significant quarterly gain, with a 22-point rise, marking its highest outlook in four years since Q4 2021.

Conversely, the hospitality sector displayed a more cautious hiring outlook at 31 percent.

When it comes to job creation, the automotive sector is projected to contribute the most significant net increase in workforce, followed closely by the information technology and IT services industries.

“The India data from the Q2 MEOS and 2026 Global Talent Shortage Report reveals a dual scenario. While employment intent is robust (NEO – 68 percent), underscoring growing employer confidence, a talent shortage is becoming increasingly acute, with 82 percent of organizations facing challenges in finding requisite skills,” commented Sandeep Gulati, Managing Director of ManpowerGroup India and the Middle East.

The report also pointed out that the North region exhibited the most favorable hiring outlook, achieving an NEO of 70, which is up 12 points quarter-on-quarter (QoQ) and 26 points YoY.

The East region recorded the most substantial quarterly improvement, with expectations climbing 20 points, reaching its highest outlook in over a decade since Q3 2012, as noted in the report.

Across various company sizes, employers maintain an optimistic stance, with all six organization-size categories anticipating staffing increases. Notably, large enterprises employing between 250 and 999 workers reported the most optimistic outlook, with an NEO of 71, up 15 points from the previous quarter.

The report further revealed that approximately 87 percent of organizations are already implementing AI in their hiring, onboarding, or employee training processes.

“In the Asia-Pacific region, AI adoption is at 80 percent, with China leading at 95 percent, followed closely by India,” the report stated.