Jobs market heats up as 60 per cent of employers plan workforce expansion: TeamLease

MUMBAI: India Inc appears to be heading into the second half of FY27 with its hiring engines running hotter, as employers signal stronger plans to expand their workforces between October 2026 and March 2027.

According to the latest Employment Outlook Report – HY2 FY27 by TeamLease Services, employers across India are projecting a Net Employment Change (NEC) of 5.4 per cent, the strongest hiring outlook recorded across the last four half-year cycles.

The figure marks a steady rise from 4.7 per cent in HY1 FY27, 4.4 per cent in HY2 FY26 and 2.8 per cent in HY1 FY26, although it remains below the 7.1 per cent peak recorded in HY2 FY25.

The report, based on a survey of 1,239 employers across 23 industries and 20 cities conducted during July and August 2026, found that 60 per cent of organisations plan to increase their workforce. Another 24 per cent expect no change in headcount, while 16 per cent anticipate workforce rationalisation. Around 22 per cent of employers are planning expansion of more than 10 per cent.

E-commerce and tech start-ups are emerging as the strongest hiring engines, recording an NEC of 12.6 per cent, up sharply from 8.9 per cent in HY1 FY27.

Hospitality and travel follow with an NEC of 12.3 per cent, compared with 5.1 per cent in the previous half-year. Retail also recorded a significant jump to 10.3 per cent from 5.5 per cent.

Automotive recorded an NEC of 10.1 per cent, followed by EV and EV infrastructure at 9.7 per cent and banking at 9.2 per cent. Logistics and fintech posted NEC figures of 8.5 per cent and 8.4 per cent, respectively.

At the departmental level, sales and marketing are expected to see the highest expansion, with 64 per cent of employers planning to increase headcount in these functions.

Information technology follows at 50 per cent, while finance and engineering are at 48 per cent and 42 per cent, respectively. Blue-collar roles account for 26 per cent of expansion plans, followed by back office and administration at 24 per cent and human resources at 22 per cent.

Digital literacy is the most sought-after competency, cited by 59 per cent of employers. Customer experience management follows at 51 per cent, while communication skills stand at 48 per cent. Teamwork and collaboration and operational adaptability are each cited by 44 per cent of employers.

The hiring surge, however, comes with its own talent puzzle. Around 72 per cent of businesses planning to expand expect moderate to severe challenges in filling vacancies.

IT roles are expected to pose the biggest recruitment challenge, with 39 per cent of employers anticipating difficulties. Sales and marketing follows at 38 per cent, while engineering stands at 32 per cent.

Vacancies typically remain open for 35 to 45 days, with specialist and site-based roles taking longer to fill, highlighting the gap between hiring intent and the availability of job-ready talent.

Company size is also influencing hiring appetite. Around 66 per cent of large enterprises plan to increase headcount, compared with 59 per cent of medium-sized organisations and 53 per cent of start-ups, micro and small businesses.

Bengaluru leads the city-wise hiring outlook, with 68 per cent of employers planning workforce expansion. Hyderabad follow