India’s job growth slows to 2.8% amid cost-conscious hiring – Jobs and Career News

India’s job market is projected to grow by 2.8% in the first half of FY26, reflecting a more cautious and demand-sensitive hiring approach, according to TeamLease Services’ latest Employment Outlook Report released on Thursday.

This marks a slowdown from the 7.1% growth recorded in the second half of FY25, indicating a strategic shift towards cost discipline and targeted recruitment. The report forecasts a 2.8% Net Employment Change (NEC), with 47% of surveyed employers planning to expand their workforce, 28% opting to maintain current levels, and 25% expecting reductions. The findings are based on inputs from 1,263 employers across 23 industries and 20 cities.

Flexible staffing continues to gain traction, with 69% of employers adopting flexi-workforce models to manage seasonal and cyclical demand. “By allowing organisations to scale quickly without the burden of long-term costs, flexi-staffing is proving crucial, especially during the leaner H1 period,” the report noted.

The gig economy also remains central to hiring strategies, particularly in customer service and sales. Around 64% of employers are leveraging gig models to fill these roles.

Meanwhile, 58% of employers cited global inflation, export slowdowns, and moderate GDP growth as reasons for prioritising cost efficiency.

This environment has accelerated a shift toward skills-based hiring. Companies are focusing more on core competencies rather than expanding headcount, seeking talent that fits specific business goals and long-term plans. Key in-demand skills include digital literacy (76%), customer experience management (68%), and communication (63%), reflecting a growing emphasis on tech readiness and service excellence.

Industries such as automotive, EVs and allied infrastructure, e-commerce, and tech startups are expected to see robust hiring, bolstered by government incentives and rising demand for sustainable mobility.

“As industries embrace emerging technologies, organisations must recognise that agility and innovation are the true engines of success. 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,” said Kartik Narayan, CEO-Staffing, TeamLease Services.

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