India job market hits record high

Indian employers are showing record optimism for hiring in the April-June quarter of 2026, fueled by strong business confidence and resilient domestic demand, according to ManpowerGroup’s latest Employment Outlook Survey.

The survey, conducted from January 1 to February 3 among over 3,000 employers across India, reported a Net Employment Outlook (NEO) of 68 per cent for Q2. This is a 17-point increase from the previous quarter and 24 points higher than the same period last year. The NEO reflects the difference between employers expecting to increase staffing and those planning to reduce it.

While hiring intentions are strong, talent shortages remain a challenge. About 82 per cent of organizations reported difficulty finding the skills they need, said Sandeep Gulati, Managing Director of ManpowerGroup India and Middle East.

The Finance and Insurance sector is the most competitive, with a NEO of 71 per cent, up 8 points from the last quarter and 26 points year-over-year. India leads globally in employment expectations for this sector. In absolute hiring numbers, the Automotive sector expects the largest additions, followed by IT and IT services. Regionally, all four regions anticipate staff increases, with the North leading at 70 per cent. Hospitality shows the most cautious outlook at 31 per cent.

AI is becoming a key part of workforce strategies, with 87 per cent of companies using it in hiring, onboarding, or training. Learning and development are seen as the area with the highest AI return (40 per cent), while only 11 per cent say AI fully meets expectations, and 4 per cent report no positive impact.

Gulati noted that India’s labor market is evolving into a competitive advantage by combining targeted hiring, upskilling, and technology-enabled talent management. The outlook reflects strong employer confidence, tempered by the challenge of meeting growing demand for skilled talent in a changing economy.

This survey highlights optimism for job growth while underscoring the ongoing need for skilled workers in a fast-transforming market.