Corporate India expects 2nd strongest hiring in 2026 Q1: Survey
Hiring likely to be 27% higher in Jan-March, 2026 compared to last quarter, says NEO report
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New Delhi: Employers in India project the second strongest employment outlook globally during the January-March period next year, with the Net Employment Outlook (NEO) at 52 per cent, a report by ManpowerGroup said on Tuesday.
According to the latest ManpowerGroup Employment Outlook survey, NEO for the first quarter of 2026 stood at 52 per cent, an increase of 27 per cent over the previous quarter and up 30 per cent from the year-ago period.
NEO measures the difference between the percentages of employers expecting to increase staffing and those expecting to decrease staffing levels.
Employers in Brazil reported the strongest NEO for Q1 Globally at 54 per cent, followed by India (52 per cent) and the UAE (46 per cent) in second and third place, respectively.
Other countries in the top 10 with the strongest hiring outlook include the Netherlands at 36 per cent, Ireland (31 per cent), Sweden (30 per cent), Guatemala (28 per cent), Switzerland (27 per cent), the US (27 per cent) and Israel (25 per cent).
The results, based on responses from 3,051 employers across India during October 2025, said the Indian market remained positive, as the economy is predicted to grow at a faster-than-expected rate, supported by a favourable monsoon that drove rural demand and lower oil prices that helped keep inflation in check.
“India’s hiring outlook is not just strong -- it is signalling a new phase of economic confidence and capability-building. What these trends truly reflect is India’s transition from volume-led hiring to value creation: organisations are investing in the skills, technologies, and talent architectures that will define their competitiveness over the next decade,” said Sandeep Gulati, Managing Director, ManpowerGroup India and Middle East. Despite a positive outlook over the past year, hiring volumes have fallen. In Q1 2026, a typical company’s total workforce is expected to grow by 65 workers. The number of added workers has steadily declined, and in Q2 2025 it touched 162.
Very Large firms with 1,000-4,999 workers have slashed their hiring volumes by 81 per cent since Q2 2025.
“The moderation in hiring intensity, especially among large enterprises, is often misunderstood. It is strategic - not cautious. Companies are re-engineering their workforce models, prioritizing high-impact roles, and blending permanent, specialist, and flexible talent to stay resilient amid shifting global dynamics. This is workforce transformation with intent, not attrition,” Gulati said.
Across the sectors, Finance & Insurance maintained the strongest Net Employment Outlook of 61 per cent, followed by Professional, Scientific & Technical Services (57 per cent), and Construction & Real Estate (54 per cent).
According to the survey, company expansion and tech advancements remain the top reasons for staffing increases, while automation tops the list for anticipated workforce reductions.
“Demand in sectors such as finance, professional services, manufacturing, and real estate shows that employers are actively preparing for a more digital, regulated, and innovation-driven economy,” Gulati said.
Going ahead, according to Gulati, India will shape its talent market around three fundamentals: critical skills, technological leverage, and purposeful expansion. “Organizations that build around these pillars will not only withstand disruption but lead it. And for India’s skilled professionals, this creates an unprecedented runway of opportunity to contribute to the country’s next wave of growth and global leadership,” Gulati said.
