India is set to remain the world’s most optimistic job market heading into the final quarter of 2026, with 65% of employers planning to increase hiring between October and December, according to the latest ManpowerGroup Employment Outlook Survey.
Among 3,055 Indian employers surveyed, 24% expect workforce levels to remain unchanged, while 11% anticipate reducing headcount. India’s Net Employment Outlook (NEO) stands at 54%, making it the strongest hiring market among all geographies covered by the survey.
Hiring sentiment strengthens across industries
Hiring intentions improved both quarter-on-quarter and year-on-year. The 65% of employers planning to increase hiring represents a rise from 59% in the September quarter. India’s NEO increased by six percentage points quarter-on-quarter and 11 percentage points year-on-year, placing the country 25 percentage points above the global average.
According to Sandeep Gulati, Managing Director, ManpowerGroup India and Middle East, organisations are increasingly focusing on building capabilities for a changing workplace. Employers are becoming more selective, prioritising specialised skills and future-ready capabilities.
Skills demand drives recruitment
The survey found that changing skill requirements and technological transformation are influencing recruitment decisions. Among employers planning to recruit, 69% cited changing roles and skills requirements as a key reason for hiring. Expansion into new business areas and demand for expertise related to technology were important drivers.
AI is influencing recruitment processes. About 57% of employers reported faster hiring processes compared with a year earlier, which Gulati attributed largely to the growing adoption of AI in recruitment.
Finance, hospitality and technology lead demand
All nine sectors surveyed in India reported positive hiring expectations for the upcoming quarter. Finance and Insurance recorded the strongest outlook at 60%, followed by Hospitality at 58% and the Information Sector at 57%. Hospitality posted the largest quarterly improvement, rising 21 percentage points from the previous quarter.
Economic resilience supports confidence
Broader economic conditions are supporting employer optimism. Sachchidanand Shukla, Group Chief Economist at Larsen & Toubro, pointed to 7.8% GDP growth, 12% year-on-year export growth and 18% to 22% growth in net sales and revenue among listed firms.
Mid-sized employers show strongest confidence
Organisations employing 1,000 to 4,999 people recorded the highest NEO at 58%, up eight percentage points quarter-on-quarter and five percentage points year-on-year. Employment expectations improved across nearly all company sizes nationwide this quarter.
With specialised skills in demand and AI-enabled recruitment gaining traction, India’s labour market enters Q4 2026 with stronger hiring momentum than most global peers.