India's hiring mood brightens as it emerges most optimistic job market globally: Survey

Bengaluru: India’s hiring outlook is expected to rebound in the final quarter of 2026, with employers signalling stronger recruitment plans for October-December after a moderation in the previous quarter, according to the latest ManpowerGroup Employment Outlook Survey.

Improving business confidence and demand for new skills have made India the most optimistic labour market among all markets surveyed globally, the study showed. Around 65% of the 3,055 Indian employers expect to increase hiring in the December quarter, up from 59% in the September quarter.

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Another 24% expect to maintain current staffing levels in October-December, while 11% anticipate a decline. This puts the net employment outlook (NEO) — a bellwether of labour market trends — at 54%.

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NEO represents the difference between companies planning to hire and those expecting a decline. Hiring sentiment is up six percentage points quarter-on-quarter and 11 percentage points year-on-year, putting India at the top of the global hiring league table, with its outlook 25 percentage points above the global average.

“Today’s hiring momentum reflects organisations’ efforts to build the capabilities required for an evolving world of work. Across India, employers are reshaping their workforces with greater intent, placing a stronger emphasis on capability building than on headcount growth alone,” said Sandeep Gulati, managing director, ManpowerGroup India and Middle East.

The survey indicates that hiring is increasingly targeted at areas where companies need new capabilities. Among employers planning to add staff, 69% cite changing roles and skills, including expansion into new areas and demand for new expertise driven by advancing technology as reasons for hiring. “Recruitment is also accelerating, with 57% of employers reporting a faster time-to-hire than a year ago, driven largely by the adoption of AI in hiring processes,” Gulati said.

The upbeat sentiment is visible across sectors, with all nine sectors surveyed in India expected to increase staffing in the coming quarter. Finance & insurance and hospitality lead the pack, with NEOs of 60% and 58%, respectively, followed by the information sector at 57%.

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Hospitality recorded the sharpest quarter-onquarter improvement, at 21 percentage points, while finance & insurance continues to benefit from stronger credit demand and the broader expansion of digital financial activity.

Sachchidanand Shukla, group chief economist at Larsen & Toubro, said the pickup in hiring sentiment reflects a stillresilient domestic demand backdrop, pointing to 7.8% GDP growth, a 12% year-on-year rise in exports and an 18-22% increase in net sales and revenue among listed companies.

With revenue visibility strongest in certain segments, however, companies may increasingly favour selective, productivity-led hiring over broadbased expansion, he said.

“Firms are hiring where revenue visibility is strongest,” Shukla said.

He cautioned, however, that overall bullishness may hold but not uniformly and will depend on domestic demand remaining firm, the interest environment and geopolitical risks remaining manageable.

Employers in organisations with 1,000 to 4,999 employees are the most optimistic, with an NEO of 58%, up eight points from the previous quarter and five points year-on-year.

Compared with the September quarter, employment expectations have risen across all organisation sizes except those with 10-49 employees, where they declined by two points.