Indian hiring intent up to 11% from 9.75% last year: Study

India’s job market is showing early signs of revival as hiring intent rises to 11%, up from 9.75% last year, signalling a return to double-digit growth after a muted 2024. The findings were published in the India Decoding Jobs 2026 Report by digital recruitment platform Taggd, in collaboration with the Confederation of Indian Industry (CII).

The report attributes the rebound to digital acceleration, formalisation of work, and regional expansion. “This resurgence marks a shift from recovery to reinvention, powered by digital acceleration, formalisation, and regional expansion,” said Devashish Sharma, co-founder and chief executive of Taggd.

The analysis draws insights from more than 300 talent leaders across 21 industries, offering a data-backed assessment of India’s emerging employment trends.

Growth drivers and sectoral trends

Sectors such as banking, financial services and insurance (BFSI), manufacturing, and infrastructure are expected to anchor hiring momentum through 2026. The report also highlights a surge in demand for AI-driven roles, digital specialists, and sustainability experts, reflecting how technology is reshaping hiring priorities.

Artificial intelligence is now central to the recruitment process itself. The report found that 60% of recruiters use AI for resume screening, while 45% deploy it for interview automation. Taggd said this shift underscores how AI skills are becoming as critical in talent acquisition as in other technology-driven sectors.

Employers are increasingly seeking candidates skilled in generative AI, cloud computing, cybersecurity, data analytics, and machine learning, along with solutions architects and AI/ML engineers.

Focus shifts to experienced professionals and Tier II cities

The report projects that 2026 will be a year for experienced professionals, as organisations prioritise mid- and senior-level hires with 6–15 years of experience.

Regional expansion is also reshaping hiring patterns. Tier II cities now account for 32% of projected jobs for 2026, as companies — particularly global capability centres (GCCs) — tap new regional hubs for cost efficiency and emerging digital talent.

Female workforce participation steady but below peak

Female hiring is expected to account for 30% of total recruitment in FY 2026–2027 — unchanged from FY 2025 but lower than the 36% reported in FY 2024, the report said. Analysts said this points to a stabilisation of gender diversity efforts after an initial pandemic-era push to increase female participation.

Outlook

The rise in hiring intent suggests cautious optimism among employers after a year of cost rationalisation and hiring freezes across several industries. Analysts said continued investment in infrastructure, AI adoption, and formal sector growth could help sustain momentum into 2026.

However, they also warned that sustained demand will depend on macroeconomic stability and how quickly firms can close skill gaps in emerging technologies.