New Delhi, March 10 Hiring intentions among Indian employers strengthened sharply for the second quarter of 2026, with the net employment outlook (NEO) rising to its highest level on record, a report showed on Tuesday.
According to an analysis by ManpowerGroup, the NEO for Q2 (April-June) stood at 68 per cent, up 17 percentage points from the previous quarter and 24 points higher year-on-year (YoY).
The report said businesses are also benefiting from tax reforms under the Goods and Services Tax (GST) regime and robust economic growth expectations for 2026.
The report also stated that the finance and insurance sectors recorded the strongest hiring outlook at 71 per cent, rising 8 points from the previous quarter and 26 points YoY.
The utilities and natural resources sector saw the largest quarterly improvement, with the outlook rising 22 points, its highest level in four years since Q4 2021.
On the other end, hospitality reported the most cautious hiring outlook at 31 per cent.
In terms of absolute job creation, the automotive sector is expected to see the largest net addition to headcount, followed by information technology and IT services.
“The India data from the Q2 MEOS and 2026 Global Talent Shortage Report presents a dual reality. Employment intent remains strong (NEO – 68 per cent), reflecting growing employer confidence, while talent scarcity continues to intensify, with 82 per cent of organisations reporting difficulty finding the skills they need,” said Sandeep Gulati, Managing Director of ManpowerGroup India and the Middle East.
The report also highlighted that the North region reported the strongest hiring outlook, with an NEO of 70, rising 12 points quarter-on-quarter (QoQ) and 26 points YoY.
The East saw the sharpest quarterly improvement, with expectations rising 20 points. The region’s outlook reached its highest level in more than a decade, since Q3 2012, the report said.
Across company sizes, employers remain optimistic, with all six organisation-size categories expecting staffing increases. The most optimistic outlook was reported by large organisations employing 250-999 workers, with an NEO of 71, up 15 points from the previous quarter.
The report also found that about 87 per cent of organisations said they are already using AI in hiring, onboarding or training employees.
“Across the Asia-Pacific region, AI adoption stands at 80 per cent, with the highest usage reported in China at 95 per cent, followed by India,” the report said.
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