Surge in Indian Hiring Intentions Amid Economic Optimism

Indian employers show strengthened hiring intentions for Q2 2026, with a record high Net Employment Outlook, driven by robust business confidence and domestic demand. The finance and insurance sector leads in competitiveness, while AI adoption influences hiring strategies. However, talent scarcity remains a challenge.

Indian employers are optimistic about job hiring for the second quarter of 2026, with a record Net Employment Outlook (NEO) of 68%, according to a recent survey by ManpowerGroup. This reflects a 17-point rise from the previous quarter and a 24-point year-over-year increase.

The survey, which involved over 3,000 employers across India, attributes this positive outlook to GST reforms, strong economic growth projections, and improved trade prospects, including India-EU agreements. The Finance & Insurance sector stands out globally, with its employment expectations surpassing the world's average by 36 points.

Despite strong hiring intent, organizations face a talent shortage, with AI adoption poised to significantly impact hiring decisions. Around 87% of companies are already utilizing AI in hiring and training, with learning and development seeing the highest ROI. However, only a small percentage reports AI fully meeting expectations.

(With inputs from agencies.)