India’s job market is showing optimism heading into the second quarter of 2026, with employers signalling the strongest hiring intentions in nearly two decades.
According to the latest ManpowerGroup Employment Outlook Survey (MEOS), conducted between January 1 and February 3 across more than 3,000 Indian organisations, the Net Employment Outlook (NEO) for Q2 stands at 68%—up 17 points from the previous quarter and 24 points year-over-year. This marks the highest reading since tracking began in Q2 2008.
The surge in hiring confidence is underpinned by a robust economic backdrop. Analysts cite strong domestic demand, sustained business confidence, and ongoing GST reforms as key drivers. Improved trade prospects, including India-EU agreements and easing global trade tensions, are expected to further bolster exports, providing additional stability for employers.
What did Manpower group MD say?
“The India data from the Q2 MEOS & 2026 Global Talent Shortage Report presents a dual reality,” said Sandeep Gulati, Managing Director of ManpowerGroup India and West Asia. “Employment intent remains strong (NEO 68%), reflecting growing employer confidence, while talent scarcity continues to intensify, with 82% of organisations reporting difficulty finding the skills they need. This shows that today’s hiring momentum is shaped as much by capability gaps as by business expansion.”
The increasing role of AI and digital transformation in shaping hiring decisions. “As automation reshapes roles, workforce strategy itself becomes a source of competitive advantage. Organizations are balancing targeted hiring with continuous upskilling and technology-enabled talent management, signalling a maturing labour market,” Gulati added.
However, across sectors, hiring intentions remain robust. The Finance & Insurance sector leads the optimism chart, with a NEO of 71, while Utilities & Natural Resources recorded the highest quarterly gain at 22 points, reaching a four-year high. Conversely, Hospitality appears cautious, with just 31% of employers anticipating growth. In absolute terms, the Automotive sector expects the largest net additions, followed by Information Technology & IT services.
Geographically, all regions anticipate growth, with the North leading at 70 and the East reporting a 10-year high NEO of 79. Large organisations with 250–999 employees show the strongest hiring confidence at 71, with India ranking first globally in employment expectations for this category.
AI adaption
AI adoption is widespread, with 87% of Indian organizations using AI in hiring, onboarding, or training. Learning and development offer the highest perceived ROI, while challenges persist in talent acquisition and privacy compliance. Despite the optimism, only 11% of employers report that AI fully meets expectations, underscoring the need for strategic deployment.
As India’s labour market enters Q2 2026, the combination of strong hiring intentions, strategic AI adoption, and focused upskilling positions employers to tackle talent shortages while sustaining growth, signaling a new era of opportunity and competitiveness.