India's job market to grow 2.8% in H1 FY26 amid cost-conscious hiring: Report

Mumbai: India's job market is expected to grow 2.8 per cent in the first half of 2025-26 amid economic complexity and cost-conscious hiring, a report said on Thursday.

This marks a measured decline from 7.1 per cent in October-March FY25, signalling a deliberate pivot toward demand-sensitive and cost-conscious hiring, according to TeamLease Services's 'Employment Outlook Report'.

The TeamLease Services' report forecasts a 2.8 per cent Net Employment Change (NEC), down from 71 per cent in H2 FY25, as 47 per cent of employers interviewed indicated plans for workforce expansion, 28 per cent opting for stability, while 25 per cent expect to reduce.

The 'Employment Outlook Report' is based on extensive primary and secondary research, drawing insights from over 1,263 employers across 23 industries and 20 cities across the country.

It further revealed that there is a growing trend of flexi-staffing, with 69 per cent of employers embracing flexible workforce models to manage cyclical demand and seasonal peaks.

By allowing organisations to scale quickly without the burden of long-term costs, flexi-staffing is proving crucial, especially during the leaner H1 period, said the report.

Similarly, the gig economy (short-term contracts or freelance work) remains vital for hiring strategies, with 64 per cent of employers expanding sales and customer service roles through gig models, it added.

The report further said that 58 per cent of employers cite factors, including global inflation, export slowdowns, and moderating GDP growth as making them prioritise cost discipline.

This trend indicates a shift towards skills-based growth, where companies seek talent that aligns directly with specific business needs and long-term objectives, rather than simply expanding headcount, it stated.

Employers are now prioritising core competencies like digital literacy (76 per cent), customer experience management (68 per cent), and communication (63 per cent), indicating a clear focus on tech-readiness, service orientation, and effective collaboration.

The report also highlighted that industries like automotive and EV and allied infrastructure sector, e-commerce and tech startups are also poised for strong growth, supported by government incentives and increased demand for sustainable mobility solutions.

"As industries embrace emerging technologies, organisations must recognise that agility and innovation are the true engines of success. The future lies not in simply expanding headcount, but in shaping highly specialised, flexible teams that can scale, evolve, and thrive amid continuous market shifts.

"By fostering such talent ecosystems, companies will not only adapt but will lead India's workforce into a new era of growth and opportunity," TeamLease Services CEO-Staffing Kartik Narayan said.