Job market likely to grow 2.8% in H1, slower than 7.1% in preceding 6 months: TeamLease report

Bengaluru: India’s employment market is likely to see a 2.8% incremental workforce expansion or new job creation in the first half of FY26 (April -September), down from 7.1% in October-March FY25, according to the latest Employment Outlook Report from TeamLease Services.

The report, which draws insights from over 1,263 employers across 23 industries and 20 cities, found that 47% of them indicate plans for workforce expansion, 28% are opting for stability, and 25% predict staff cuts.

With 58% of employers citing economic factors, including global inflation, export slowdowns and moderating GDP growth as key drivers, companies are increasingly prioritising cost discipline and output-per-head efficiency. This trend, said the report, indicates a shift towards skills-based growth, where companies seek talent that aligns directly with specific business needs and long-term objectives, rather than simply expanding headcount.

Employers are now prioritising core competencies such as digital literacy (76%), customer experience management (68%), and communication (63%), indicating a clear focus on tech readiness, service orientation, and effective collaboration.

According to the report, 69% of employers are adopting flexi-staffing models to scale quickly and manage costs effectively. This strategy is proving crucial, especially during the leaner first half. Similarly, the gig economy remains a cornerstone of hiring strategies, with 64% of employers expanding sales and customer service roles through gig models.

The automotive and EV sectors are leading workforce growth. The automotive industry is projecting 6.9% net employment change (NEC) and EV and allied infrastructure are expected to expand by 7.1%, supported by government incentives and increased demand for sustainable mobility solutions. Similarly, ecommerce and tech startups are set to grow by 6.9%.

“India’s workforce stands at a defining moment, where traditional models of hiring are giving way to more dynamic and adaptive strategies. As industries embrace emerging technologies, organisations must recognise that agility and innovation are the true engines of success,” said Kartik Narayan, CEO, staffing, TeamLease Services, in a statement. “The future lies not in simply expanding headcount, but in shaping highly specialised, flexible teams that can scale, evolve, and thrive amid continuous market shifts. By fostering such talent ecosystems, companies will not only adapt but will lead India’s workforce into a new era of growth and opportunity.”

The rise of AI and automation is another factor accelerating the evolution of workforce requirements. Companies are replacing traditional transactional roles with positions centred on data analysis, digital transformation and cross-functional agility. The shift to generative AI, cloud technologies and low-code platforms is driving a demand for specialised, tech-savvy talent across all sectors.