The survey shows that hiring sentiment in India is seven percentage points stronger compared to the previous quarter; the same compared to last year; and 12 percentage points higher than the global average of 25% for the last quarter of 2024. About 50% of survey participants said they would hire more people, while 13% expected a decline in hiring intent or had no plans to fill vacant positions. This puts the net employment outlook (NEO) – a gauge of labor market trends that indicates the difference between companies looking to hire and those expecting a decline in headcount or the number of hires – at 37%.
“The hiring intention of employers means the positive outlook on the country’s economic position,” he said. Sandeep GulatiManaging director, Manpower India Group and the Middle East. “India is expected to focus on high domestic consumption, government programs to boost the economy, rising demand for outsourced services and a booming manufacturing industry.”
The survey found that around 34% of Indian employers planned to keep the workforce level stable, while around 3% were unsure about hiring.
Experts said India’s hiring prospects are a function of its demographic dividend and growth momentum. Last week, Reserve Bank of India Governor Shaktikanta DasShe also stressed that the fundamental drivers of the economy’s growth are gaining momentum and the country is on a sustainable growth path. Gulati said, “With increased focus on skill development to meet market demands, India may be able to reduce unemployment and accelerate the pace of economic development by creating a more capable and adaptable workforce,” said Teresa John, an economist and deputy director of research at equity research firm Nirmal Bang Institutional EquityHe told ET that India’s growth continues to outpace the rest of the world, though there is some cyclical moderation in growth. “India’s skilled and relatively cheap labour makes it an attractive destination for many foreign companies to set up their global captive centres. Even many medium and small companies are setting up bases and sourcing high value-added work, including R&D, from India, which is likely to be supporting job creation in the formal sector,” he said.
“Hiring in the IT sector also appears to be undergoing a turnaround amid hopes that its customers will return to discretionary spending with US rate cuts looming.”
Financial and real estate sectors have the highest hiring intentions, with an unanticipated hiring rate of 47%. IT is second at 46%, followed by industrials and materials at 36%, consumer goods and services at 35%, and energy and utilities at 34%. The sectors with the least optimistic outlooks are healthcare and life sciences at 30% and communication services at 28%.
Globally, Costa Rica (36%) and the United States (34%) round out the list of the top three countries with the strongest NEO outlook for the December quarter. In the Asia-Pacific region, Singapore (29%) and China (27%) have reported the strongest outlook after India.
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