Reports

India’s employment landscape is entering a decisive phase, shifting from broad-based volume growth to precision hiring, anchored in measurable value and capability. The outlook for HY2 (October–March FY25–26) is robust, with 56% of employers planning to expand their workforce, propelling the Net Employment Change (NEC) to +4.4%. Strong macroeconomic fundamentals, including sustained GDP growth, rising consumer demand, and supportive policy measures such as GST rationalisation, the Production-Linked Incentive (PLI) scheme, and PM-VBRY, underpin this renewed confidence. These factors together signal a growing alignment between government initiatives and business hiring strategies, setting the stage for targeted workforce expansion. However, hiring momentum remains highly sector-specific, reflecting a two-speed market. E-commerce and tech start-ups (+11.3% NEC), Logistics (+10.8% NEC), and Retail (+8.1% NEC) are leading the charge, propelled by festive demand, rapid adoption of quick commerce, and formalisation of supply chains. In contrast, sectors such as BPO (-2.0% NEC) and Educational Services (+1.7% NEC) are recalibrating, impacted by automation, funding pressures, and a shift toward efficiency-first operational models. This divergence highlights the need for businesses to align recruitment strategies with sector-specific drivers rather than adopting uniform approaches. The demand for talent has fundamentally evolved. Employers are increasingly prioritising execution excellence, adaptability, and measurable contribution over mere academic credentials. The top three competencies sought are Communication Skills (89% of employers), Basic Computer Skills (81%), and Critical Thinking (78%), skills that serve as the operational glue for leaner, hybrid teams. Simultaneously, the traditional junior hiring playbook is transitioning from mass intake to selective, performance-driven recruitment, focusing on quality rather than quantity. This half-year is not merely about adding headcount; it is about smarter deployment, tighter ROI scrutiny, and compounding capabilities to ensure high-quality, sustainable growth. Employers who successfully pivot toward precision hiring and capability-focused deployment will likely emerge stronger in the evolving Indian job market.