India's Workforce Shake-up: Projected 4.7% Expansion by FY27

India's workforce is expected to grow by 4.7% in the first half of FY27, spurred by e-commerce, tech startups, healthcare, pharmaceuticals, and manufacturing. The shift is driven by structural changes and new labor codes, affecting employment costs and necessitating salary structure redesigns across industries.

India's workforce is poised for a notable expansion of 4.7% in the first half of the fiscal year 2027, driven by growth in pivotal sectors such as e-commerce, tech startups, healthcare, pharmaceuticals, and manufacturing. This is according to a recent report by TeamLease Services.

The growth in employment is most pronounced among large enterprises, with 74% of them projecting expansion, in stark contrast to 57% of mid-sized firms and 38% of small businesses. This indicates a scale-driven recovery with larger firms leading the charge.

Insights from the report highlight a shift influenced by structural and policy changes, including the implementation of new labor codes. These changes have led 64% of organizations to report increased employment costs, while 80% are redesigning salary structures to adapt to new statutory requirements.

(With inputs from agencies.)