The job market has shown early signs of revival in August with the foundit hiring index rising 5% month-on-month last month after falling for five consecutive months. Despite the latest rebound, the index is still 18% below its February peak.
Travel and Tourism Soar
The biggest trend is the widening gap between IT and travel & tourism hiring. Travel & tourism remained one of the strongest-performing industries through much of 2026 with hiring growing 22% in August. The sector has been supported by the recovery in domestic and international travel, capacity expansion in hospitality and aviation, and rising demand for digital and revenue-management roles.
In contrast, IT hiring has steadily lost momentum through 2026. Growth was particularly strong at the beginning of the year, but it weakened sharply over the following months, with the pace of hiring slowing further in July and August. The report attributed the broader slowdown to a cyclical correction in traditional technology services even as demand continued for newer technology and specialised skills.
The August recovery has been led by a few pockets of the job market rather than a broad-based improvement. Overall, only five of the 27 industries tracked by foundit recorded annual hiring growth. Healthcare and pharma grew 16% year-on-year, while real estate and construction and engineering also recorded annual growth, of 10% and 5%, respectively. Sectors like BPO, retail and logistics and transportation declined 13%, 18% and 22%, respectively.
The overall hiring index started the year on a strong note but has remained subdued since then. From 377 in January, the index rose sharply to 404 in February – its peak for 2026. It then declined to 385 in March, 370 in April, 348 in May, 331 in June and 314 in July, before recovering to 330 in August.
Targeted Mid-Career Recruitment
At the same time, the hiring has become more selective. Demand for professionals with 7-10 years of experience rose 10% in August while hiring for those with 0-3 years fell 9% and for those with more than 15 years fell 11%. This suggests that companies are showing stronger demand for mid-career professionals, while hiring remains weak for entry-level and senior professionals.
According to foundit, the labour market is moving away from volume hiring towards more targeted recruitment. “The market is evolving from volume-driven recruitment to capability-led workforce planning, where domain specialisation, digital fluency and applied AI expertise define employability and growth,” the report said.