Corporate India has a steady hiring outlook for the next three months, driven by strong growth in the private services sector and hopes of economic benefits stemming from shifts in global trade dynamics, a report said on Tuesday.
According to the latest ManpowerGroup Employment Outlook Survey, employers reported a Net Employment Outlook (NEO) of 42 per cent -- the second highest outlook globally and emerging as a key player in the global employment landscape.
The NEO is calculated by subtracting the percentage of employers who anticipate reductions in staffing levels from those who plan to hire.
"As we enter the third quarter of 2025, India's employment Outlook remains robust, with a NEO of 42 per cent -- among the highest globally. Despite a slight dip from the previous quarter, the 12-point year-on-year gain highlights sustained employer confidence and growth momentum in the labour market," said Sandeep Gulati, Managing Director, ManpowerGroup India and Middle East.
As per the survey findings, the majority of employers - 54 per cent anticipate an increase in hiring, 32 per cent expect to maintain current staffing levels, 12 per cent anticipate a decrease, and 2 per cent are unsure.
Globally, the UAE reported the strongest NEO of 48 per cent, followed by India (42 per cent) and Costa Rica (41 per cent) in the second and third position, respectively.
The other countries in the top five most bullish hiring outlook include -- Brazil with 33 per cent at the fourth position and the Netherlands with 30 per cent at the 5th rank.
"This optimism is driven by strong hiring intent in sectors such as Information Technology, Energy & Utilities, and Financial Services, where companies are actively expanding and accelerating digital transformation.
"Even amid global geopolitical uncertainty and trade disruptions, Indian employers are staying proactive - 82 per cent report increased investment in automation, while 67 per cent are evolving their workforce strategies to meet changing skill demands," Gulati said.
The results, based on responses from 3,146 employers across India during April 2025, showed the outlook declining by one point from the previous quarter, while improving by 12-point year-on-year.
"Despite the quarterly dip, the Indian hiring Outlook remains very animated. This optimism is driven by strong growth in the private services sector and expectations of economic benefits stemming from shifts in global trade dynamics-especially in relation to China," the report said.
The report further noted that global trade uncertainty is shaping hiring decisions for 90 per cent of companies. The impact is particularly pronounced among employers in Energy & Utilities (94 per cent), Information Technology & Communication Services at (93 per cent each), closely followed by those in Financials & Real Estate at 91 per cent.
"We are seeing a clear shift from volume hiring to building agile, digitally skilled teams. As organisations adapt to this new world of work, resilience and transformation will be key. At ManpowerGroup, we believe India is well positioned to lead in the region, and employers who invest in innovation and inclusive talent strategies will be best placed to thrive in the long-term," Gulati said.
A sector wise analysis shows that Energy & Utilities, with an outlook of 50 per cent, showed an increase of 18 points since the prior quarter and this quarter last year.
Information Technology comes in as the second leading sector with hiring intentions at 46 per cent, down eleven points year-on-year. The sector's strength reflects ongoing digital transformation needs and AI-related skill demands. Other strong performers include - Industrials & Materials (45 per cent), Financials & Real Estate (43 per cent) & Healthcare & Life Sciences (38 per cent).
Region wise, the North region with a NEO of 46 per cent, showed an increase of 2 points since the previous quarter and 10 points since Q3 2024. This is followed by East (44 per cent), West (41 per cent) and South with 36 per cent NEO.
Moreover, employers in India within large organisations of 1,000-4,999 employees showed the most optimism with a NEO of 52 per cent. Expectations in these organisations decreased by 6 points since the previous quarter but increased by 10 points since this time last year.
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