Synopsis

India’s employment market is set for stronger hiring momentum in October 2026-March 2027, with employers projecting 5.4% workforce growth, the highest in four half-year periods, TeamLease Services said. E-commerce, tech startups, travel, hospitality and retail lead hiring plans, though talent shortages could constrain expansion, particularly across IT, sales and engineering.

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India’s hiring outlook is strengthening for the second half of FY27, with employers projecting 5.4% workforce growth, led by e-commerce, tech startups, travel, hospitality and retail, although talent shortages remain a key constraint. (Representative image)

Bengaluru: India’s employment market is set for stronger hiring momentum in the second half of FY27 (October 2026-March 2027), with employers projecting a 5.4% increase in workforce, up from 4.7% in the preceding six months and 4.4% in the corresponding period last year, according to the latest Employment Outlook Report from staffing firm TeamLease Services.

The report, which draws insights from over 1,239 employers across 23 industries and 20 cities, found that 60% of employers are planning to add headcount in the second half of FY26-27; while 24% expect no change and 16% anticipate rationalisation. Around 22% expect workforce growth of more than 10%. The 5.4% net employment change (NEC) is the highest recorded by TeamLease across the last four half-year periods.

The outlook is being led by e-commerce and tech startups, travel and hospitality and retail, which recorded net employment changes of 12.6%, 12.3% and 10.3% respectively. Automotive, EV and EV infrastructure and banking also recorded strong hiring intent, with NECs of 10.1%, 9.7% and 9.2% respectively.

Economic conditions emerge as the strongest factor influencing workforce size, cited by 67% of employers, followed by organisational dynamics such as growth or restructuring (43%) and technological advancements (40%), which continue to shape hiring decisions.

Large enterprises are showing the highest hiring intent, with 66% planning to increase their workforce compared with 59% of medium-sized enterprises and 53% of startups and small businesses. Bengaluru leads among the major hiring hubs, with 68% of employers planning to expand, followed by Hyderabad at 61% and Pune at 60%.

However, talent availability could constrain hiring plans. Nearly three-fourth (72%) of employers planning to expand expect moderate to significant difficulty in finding talent. IT (39%), sales & marketing (38%), and engineering (32%) are expected to be the functions facing the highest hiring challenges, while the average time-to-fill for roles stands at 35–45 days, with specialist and site-based positions taking longer.

“The employment outlook reflects a shift towards more targeted workforce expansion, with businesses aligning talent decisions closely with changing demand. The challenge now is to ensure that hiring plans translate into the right capabilities on the ground,” said Balasubramanian A, Senior Vice President, TeamLease Services, in a statement.

“This will require employers to widen talent pools, build skills faster and adopt more flexible workforce models,” he added.

The report also points to a gap between AI adoption and its integration across the workforce. While 85% of employers report some level of AI or GenAI use, only 13% have extended it to more than half of their workforce, suggesting that adoption is still largely focused on individual roles and tools rather than broad workforce redesign.

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