India's diversity hiring jumps 21% in May 2026 as white-collar demand cools
Synopsis
Key Takeaways
India's diversity hiring rose 21 per cent year-on-year in May 2026, even as overall white-collar recruitment moderated, signalling that employers are protecting inclusion budgets through a broader hiring slowdown, according to a new report by jobs platform foundit released on Wednesday.
Overall white-collar hiring eased 4 per cent year-on-year and 6 per cent sequentially in May, the report noted, underscoring a divergence between cautious headline recruitment and a deepening commitment to diversity, equity and inclusion mandates across India Inc.
Key numbers from the report
Women accounted for 56 per cent of all diversity-focused recruitment in the reporting period. Representation of persons with disabilities (PwD) tripled over two years to reach 12 per cent of diversity hires, driven by accessibility investments, inclusive workplace design, and ESG compliance pressures.
Broader diversity and inclusion (D&I) hiring — which includes LGBTQIA+ and neurodiverse talent — has expanded to nearly a third of all diversity hires, at 32 per cent, with the sharpest uptake inside IT and consulting firms that have built out inclusion frameworks.
What India Inc. is saying
“While overall hiring has grown more selective, organisations continue to invest in talent areas that support long-term business resilience,” said Tarun Sinha, CEO of foundit. He added that India Inc. is approaching inclusion “less as a compliance requirement and more as a capability strategy,” pointing to the expansion of diversity hiring into leadership and technology functions as a marker of a more mature workforce model.
Sector and city breakdown
IT – Software & Services retained its position as the largest diversity hiring sector at 25 per cent, with 40 per cent of its diversity hires comprising LGBTQIA+ and neurodiverse talent. BFSI recorded the highest women representation at 62 per cent of its diversity hires, followed by FMCG at 61 per cent and healthcare at 60 per cent.
PwD hiring was most concentrated in ITES or BPO (18 per cent) and manufacturing or automotive (16 per cent), while consulting and analytics expanded its diversity share from 12 per cent to 14 per cent.
Bengaluru emerged as the largest diversity hiring hub in FY26, with its share rising from 15 per cent to 19 per cent, driven by demand across technology, BFSI, and healthcare. Hyderabad posted the strongest growth, climbing from 10 per cent to 15 per cent, reflecting demand from Global Capability Centres (GCCs), technology companies, and pharma-led enterprises.
Startups and seniority mix
Startups accounted for 21 per cent of diversity hiring, led by AI, SaaS, fintech, and HR technology firms that have embedded skills-first and inclusive hiring models into their workforce strategies. Around 18 per cent of diversity-focused hires are now at senior management and leadership level, while mid-level roles made up the largest share at 44 per cent.
With sectoral hiring expected to stay selective through the second half of FY26, the report suggests that diversity mandates — long viewed as discretionary — are emerging as one of the more durable lines on India Inc.'s talent budgets.