India records world’s second-strongest hiring plans for first quarter of 2026: Survey

New Delhi: India is set to enter the new year with one of the most optimistic hiring sentiments in the world, as employers report the second-highest employment outlook globally for the January–March 2026 quarter. According to the latest ManpowerGroup Employment Outlook Survey, 52% of Indian companies plan to expand their workforce over the next three months.

The survey places India just behind Brazil, which leads with a 54% Net Employment Outlook (NEO). The UAE follows in the third spot with 46%. The NEO represents the gap between employers expecting to increase staff and those predicting reductions.

For Q1 2026, India’s NEO stands at 52%, marking a 27% rise from the previous quarter and a 30% jump from the same period last year, signalling strong employer confidence despite ongoing global uncertainties.

Globally, several European and American economies also feature in the top hiring markets: the Netherlands (36%), Ireland (31%), Sweden (30%), Guatemala (28%), Switzerland (27%), the US (27%) and Israel (25%).

The report, based on responses from 3,051 employers across India in October 2025, suggests that India’s upbeat forecast is backed by an economy growing faster than earlier estimates—supported by a favourable monsoon that boosted rural consumption and softened oil prices that kept inflation contained.

“India's hiring outlook is not just strong — it is signaling a new phase of economic confidence and capability-building... organisations are investing in the skills, technologies and talent architectures that will define their competitiveness over the next decade,” said Sandeep Gulati, managing director, ManpowerGroup India and Middle East.

Hiring volumes slow even as outlook climbs

Interestingly, the strong sentiment has not translated into higher hiring volumes. A typical organisation is likely to add 65 employees in Q1 2026—a sharp decline from 162 additions recorded in Q2 2025. Large companies with 1,000–4,999 employees have cut their hiring numbers by 81% since Q2 2025.

Gulati called the trend a strategic, not cautious, shift. “The moderation in hiring intensity, especially among large enterprises, is often misunderstood. It is strategic — not cautious. Companies are re-engineering their workforce models... This is workforce transformation with intent, not attrition,” he said.

Finance, tech services and real estate lead hiring

Among sectors, Finance and Insurance leads with the highest NEO at 61%, followed by Professional, Scientific and Technical Services (57%) and Construction and Real Estate (54%). Company expansion and technological upgrades are the primary drivers of workforce additions, while automation remains the biggest contributor to potential reductions.

“Demand in sectors such as finance, professional services, manufacturing, and real estate shows that employers are actively preparing for a more digital, regulated, and innovation-driven economy,” Gulati added.

Looking ahead, he said India’s talent ecosystem will be anchored in three priorities—critical skills, tech adoption, and purposeful expansion: “Organisations that build around these pillars will not only withstand disruption but lead it. And for India's skilled professionals, this creates an unprecedented runway of opportunity to contribute to the country's next wave of growth and global leadership.”

PTI