Workforce expansion is accelerating across India, with TeamLease projecting a 4.7% rise in hiring for the first half of FY2026–27 (April–September). The growth is led by e-commerce, tech startups, and healthcare, signaling renewed employer confidence as companies adapt to structural shifts, rising compliance demands, and evolving business priorities.

Scale of Recovery

The Employment Outlook Report, released by TeamLease Staffing on Thursday, highlights that 58% of companies plan to expand their workforce, 26% anticipate no change, and only 16% foresee reductions, reflecting cautious but positive optimism. Large enterprises are at the forefront, with 74% indicating hiring expansions, compared to 57% of mid-sized firms and 38% of smaller businesses, pointing to a scale-driven recovery in employment trends.

Sector-wise, the momentum is led by e-commerce and tech startups, boasting a Net Employment Change (NEC) of 8.9%, followed by Healthcare and Pharma at 7%, and Manufacturing, Engineering, and Infrastructure at 6.6%. Capital expenditure, supply chain realignment, and policy incentives are sustaining demand in core sectors, while attractive salary increments in emerging segments—EV infrastructure (10.5%), fintech (9.9%), and healthcare (9.7%)—signal heightened competition for skilled talent.

Skill-First Strategy

Functionally, the focus is shifting toward revenue and growth-critical roles. Sales and marketing teams are expanding at 54%, while IT (40%) and finance (39%) roles also see robust demand. Administrative and back-office functions, however, remain largely stable due to automation and process optimization.

Urban hubs are driving this capability-led growth, with Bengaluru (67.9%), Hyderabad (57.8%), and Pune (56.1%) leading employer expansion intent, followed by Mumbai and Chennai. Employers are prioritizing skills aligned with business transformation, including digital literacy (77%), customer experience management (68%), and communication (61%), alongside adaptability, critical thinking, and data-driven capabilities.

Commenting on the trends, Balasubramanian A, Senior VP, TeamLease Services, said, “India’s workforce is being shaped more by structural and policy-driven shifts than cyclical demand. With 64% of firms reporting rising employment costs, 80% redesigning salary frameworks, and 62% upgrading HR systems, companies are embedding compliance into workforce strategies, prioritizing long-term sustainability over short-term gains.”

The report underscores a clear evolution: India’s hiring landscape is moving toward strategic, skill-focused, and compliance-ready workforce models, driven by both digital adoption and sectoral depth.