More than half of employers plan to expand their workforce in HY2 2025-26: Report

Mumbai, Oct 15 (PTI) More than half of employers (56 per cent) surveyed intend to expand their workforce in the second half of 2025-26, with e-commerce and tech start-ups, logistics, and retail leading the demand, a report said on Wednesday.

About 56 per cent of employers plan to expand their workforce in October-March, FY2025-26, while 27 per cent aim to maintain stability and 17 per cent anticipate rationalisation, reflecting a precision-led approach to hiring, according to the TeamLease Services Employment Outlook Report.

Large enterprises are driving most of the hiring momentum, while medium and small businesses are proceeding with a more cautious, return-first approach, it stated.

Sectors leading the employment surge include e-commerce and tech start-ups, logistics, and retail, with projected NECs of 11.3 per cent, 10.8 per cent, and 8.1 per cent, respectively.

The automotive, FMCG and EV infrastructure segments are also expanding steadily, supported by policy incentives such as PLI and EMPS, localisation efforts, and strong domestic consumption, it said.

These industries together reflect the resilience and adaptability of India's job market, where technology, consumption, and infrastructure investment continue to drive workforce demand, said the report.

The TeamLease Services Employment Outlook Report is based on inputs from a survey conducted during June-August among top leaderships in 1,251 companies across 23 industries and 20 cities in India.

Further, the report revealed that communication, basic computer skills, and critical thinking have emerged as the most in-demand skills, cited by 89 per cent, 81 per cent, and 78 per cent of employers, respectively.

These competencies are now seen as essential for maintaining productivity in hybrid and cross-functional teams, it said.

The workforce transformation is equally visible across locations, with Bengaluru, Hyderabad, and Mumbai leading hiring intent due to their concentration of technology, manufacturing, and service enterprises, said the report.

"India's workforce is entering a transformative phase where traditional hiring approaches are giving way to targeted, skill-driven strategies. According to our report, 61 per cent of employers are adopting selective, performance-based approaches for entry-level roles," Balasubramanian A, Senior Vice President, TeamLease Services, said.

He said by embedding capability-led, performance-linked practices, companies can not only meet today's business needs but also shape a resilient and future-ready workforce.

"Also, the government's push towards formalisation through schemes such as the Employment-Linked Incentive (ELI) looks promising, with 53 per cent of employers aware of the scheme and 64 per cent rating skill development support as its most valuable feature. This reflects a broader trend of prioritising skill density, retention, and formalisation over short-term cost savings," he added. PTI SM MR