India is set to remain the world's most optimistic job market heading into the final quarter of 2026, with 65% of employers planning to increase hiring between October and December, according to the latest ManpowerGroup Employment Outlook Survey.
The findings, reported by ManpowerGroup, indicate a sharp improvement in employer confidence following a softer September quarter. Among the 3,055 Indian employers surveyed, 24% expect workforce levels to remain unchanged, while 11% anticipate reducing headcount.
As a result, India's Net Employment Outlook (NEO) stands at 54%, reinforcing the country's position as the strongest hiring market among all geographies covered in the global survey.
Hiring sentiment strengthens across industries
The survey showed hiring intentions improved both sequentially and annually.
Key findings include:
- 65% of employers expect to increase hiring in Q4 2026
- Hiring intentions rose from 59% in the September quarter
- India's NEO reached 54%
- Hiring sentiment improved by six percentage points quarter-on-quarter
- NEO increased by 11 percentage points year-on-year
- India's outlook stands 25 percentage points above the global average
According to Sandeep Gulati, Managing Director, ManpowerGroup India and Middle East, organisations are increasingly focusing on building capabilities required for a changing workplace rather than pursuing workforce growth alone.
The data suggests employers are becoming more selective, prioritising specialised skills and future-ready capabilities alongside broader workforce expansion plans.
Skills demand drives recruitment plans
The survey found hiring activity is increasingly linked to changing skill requirements and technological transformation. Among employers planning to recruit:
- 69% cited changing roles and skills requirements as a key reason for hiring
- Expansion into new business areas was identified as a major driver
- Demand for expertise linked to advancing technologies contributed to recruitment plans
- 57% reported faster hiring processes compared with a year earlier, which Gulati attributed largely to the growing adoption of AI in recruitment
The findings indicate companies are targeting talent acquisition efforts towards areas where capability gaps are emerging rather than pursuing broad-based workforce growth.
Finance, hospitality and technology lead demand
All nine sectors surveyed in India reported positive hiring expectations for the upcoming quarter. The strongest hiring outlooks were recorded in:
- Finance and Insurance: NEO of 60%
- Hospitality: NEO of 58%
- Information Sector: NEO of 57%
Hospitality posted the strongest quarterly improvement, with hiring expectations rising by 21 percentage points compared with the previous quarter.
According to the survey, finance and insurance continue to benefit from stronger credit demand and ongoing growth in digital financial services.
Economic resilience supports employer confidence
The survey also drew support from broader economic indicators highlighted by Sachchidanand Shukla, Group Chief Economist at Larsen & Toubro.
Shukla said hiring optimism reflects resilient domestic demand conditions, pointing to:
- 7.8% GDP growth
- 12% year-on-year export growth
- 18% to 22% growth in net sales and revenue among listed companies
He noted that companies are increasingly concentrating hiring efforts in areas where revenue visibility remains strongest, while cautioning that hiring momentum will continue to depend on domestic demand, interest rate conditions and geopolitical stability.
Mid-sized large employers show strongest confidence
Employer optimism was strongest among organisations employing between 1,000 and 4,999 people.
This segment recorded:
- NEO of 58%
- An increase of eight percentage points quarter-on-quarter
- An increase of five percentage points year-on-year
Employment expectations improved across nearly all company sizes compared with the September quarter. The only exception was organisations with 10 to 49 employees, where hiring sentiment declined by two percentage points.
With demand for specialised capabilities accelerating and employers increasingly using AI-enabled recruitment tools, India's labour market enters the final quarter of 2026 with stronger momentum than most global peers. The survey suggests businesses are focusing on targeted talent investments as they prepare for growth opportunities in an evolving economic and technological environment.