The survey shows hiring sentiment in India is stronger by seven percentage points compared with the previous quarter; the same when compared with a year ago; 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 decrease in hiring intent or had no plans to backfill. This puts the net employment outlook (NEO)-a bellwether of labour market trends that indicates the difference between companies looking to hire and those expecting a fall in headcount or hiring numbers-at 37%.
“The hiring intention of employers signifies the positive outlook in the country’s economic position,” said Sandeep Gulati, managing director, ManpowerGroup India and Middle East. “India is expected to focus on its high domestic consumption, economy-booster government schemes, increasing demand for outsourcing services and manufacturing boom.”
The survey found that about 34% of the Indian employers planned to keep the workforce level steady while about 3% were unsure about hiring.
Experts said India’s hiring outlook is a function of its demographic dividend and growth momentum. Last week, Reserve Bank of India Governor Shaktikanta Das, too, had emphasised that the fundamental growth drivers for the economy 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 fasten the pace of economic development by creating a more capable and adaptable workforce.”Teresa John, economist and deputy head of research at equity research firm Nirmal Bang Institutional Equities, told ET that India’s growth continues to outperform the rest of the world even as there is some cyclical moderation in growth. “India’s relatively low-cost and skilled workforce makes it an attractive destination for many foreign companies to set up their global captive centres. Even many mid- and small-sized companies are setting up base and sourcing work with high value-add, including R&D, from India, which is likely supporting job creation in the formal sector,” she said.
“IT sector hiring also seems to be witnessing some turnaround on hopes of return of discretionary spend by their clients with rate cuts in the US on the anvil.”
Financials and realty have the strongest hiring intentions with an NEO of 47%. IT is a close 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 outlook are healthcare and life sciences at 30%, and communication services at 28%.
Globally, Costa Rica (36%) and the US (34%) round off the list of the top three countries with the highest NEOs for the December quarter. In the Asia-Pacific region, Singapore (29%) and China (27%) have reported the strongest outlooks after India.