India’s workforce expansion is projected to reach 5.4% in the second half of financial year 2026-27, covering October 2026 to March 2027, according to TeamLease Services’ latest Employment Outlook Report. The projection is higher than the 4.7% recorded for the first half of FY27 and marks the strongest outlook across the previous four half-year periods covered by the report. E-commerce and technology startups, travel and hospitality, and retail are expected to lead hiring activity.
The report is based on responses from 1,239 employers across 23 industries and 20 cities, with the survey conducted during July and August 2026. While the findings point to stronger recruitment intentions, employers still face challenges in finding suitable candidates. The survey also highlights a gap between the growing use of artificial intelligence tools and their adoption across entire workforces, suggesting that companies are still adjusting their hiring and skills strategies.
Key Takeaways
- Workforce growth outlook: Net Employment Change is projected at 5.4% in H2 FY27, compared with 4.7% in H1.
- Leading sectors: E-commerce and technology startups have a 12.6% outlook, followed by travel and hospitality at 12.3% and retail at 10.3%.
- Other expanding industries: Automotive, electric vehicles and EV infrastructure, and banking also report strong hiring intentions.
- Hiring challenges: 72% of employers planning workforce expansion expect moderate to significant difficulty in recruitment.
- Cities in focus: Bengaluru leads hiring intent, followed by Hyderabad and Pune.
- AI adoption: 85% of surveyed employers report some AI or generative AI use, but only 13% say these tools are used by more than half of their workforce.
- Important caveat: The figures reflect survey-based employment intentions, not confirmed job creation.
Workforce Growth Outlook Rises to 5.4% in H2 FY27
TeamLease Services’ Employment Outlook Report indicates that employers expect hiring momentum to improve during the second half of FY27. The Net Employment Change (NEC) projection increased from 4.7% in April-September 2026 to 5.4% for October 2026-March 2027.
NEC is a measure used to assess the expected direction of employment, taking into account employers’ plans to expand or reduce their workforces. It should not be confused with the percentage increase in the total number of jobs across the entire economy.
The higher projection suggests that more businesses are planning workforce expansion as they respond to demand across digital commerce, consumer-facing services and emerging industries. However, the actual outcome will depend on business conditions, the availability of suitable candidates and whether employers follow through on their plans.
| Employment indicator | Reported figure |
|---|---|
| Net Employment Change, H1 FY27 | 4.7% |
| Projected Net Employment Change, H2 FY27 | 5.4% |
| Employers surveyed | 1,239 |
| Industries covered | 23 |
| Cities covered | 20 |
| Survey period | July-August 2026 |
Source: TeamLease Services Employment Outlook Report, as reported by Outlook Business and Business Standard.
E-Commerce and Technology Startups Lead Hiring Plans
E-commerce and technology startups are expected to record the strongest employment outlook among the sectors highlighted in the report, with an NEC of 12.6%. The combined category reflects hiring expectations across businesses connected with online commerce and technology startups.
The growth of digital commerce can generate demand across several functions, including technology development, logistics, warehousing, customer support, sales and marketing. Companies may also need workers to support payments, fulfilment, digital platforms and customer acquisition.
Technology startups can create demand for software development, product operations, data-related roles and digital business functions. However, the survey does not establish how many jobs each industry will ultimately add or how many of those positions will be permanent, contractual or gig-based.
Sector-wise employment outlook
| Sector | Projected NEC for H2 FY27 |
|---|---|
| E-commerce and technology startups | 12.6% |
| Travel and hospitality | 12.3% |
| Retail | 10.3% |
| Automotive | 10.1% |
| EV and EV infrastructure | 9.7% |
| Banking | 9.2% |
| Textiles | 0.8% |
| Media and entertainment | 0.3% |
| Educational services | 0.1% |
| Business process outsourcing (BPO) | -0.2% |
Figures represent the report’s sector outlook, not verified job additions.
Travel and hospitality ranked second, with a projected NEC of 12.3%. Hiring in this sector can be influenced by travel demand, hotel operations, food services and related activities. Retail followed at 10.3%, pointing to expected workforce expansion in consumer-facing businesses.
Automotive hiring intent stood at 10.1%, while EV and EV infrastructure recorded 9.7%. Banking was also among the sectors with a strong outlook at 9.2%.
At the other end of the table, BPO was the only sector listed with a negative NEC, at -0.2%. Educational services had a marginally positive outlook of 0.1%, while media and entertainment and textiles recorded 0.3% and 0.8%, respectively.
The differences underline that hiring conditions are not improving evenly across the economy. Some industries expect to expand more quickly, while others face slower demand or pressure to change how work is performed.
Bengaluru Leads City-Level Hiring Intent
The survey found that hiring intentions varied by city. Bengaluru ranked first, with 68% of respondents identifying it as a location where employers planned workforce expansion. Hyderabad followed at 61%, while Pune recorded 60%.
| City | Employers indicating hiring intent |
|---|---|
| Bengaluru | 68% |
| Hyderabad | 61% |
| Pune | 60% |
| Mumbai | 55% |
| Delhi | 53% |
Source: TeamLease Employment Outlook Report, as reported by Business Standard.
Bengaluru’s position reflects its importance as a centre for technology and other corporate functions. Hyderabad and Pune are also established business and technology hubs, while Mumbai and Delhi remain important markets for financial services, commerce and corporate operations.
These figures measure the share of surveyed employers indicating hiring plans in each city. They do not represent each city’s share of national job creation or the percentage by which local employment will increase.
For job seekers, city-level hiring intent can provide a useful starting point for researching opportunities. Candidates should still evaluate specific job openings, required qualifications, salary levels and relocation costs before making career decisions.
Sales, Marketing and Technology Functions See Demand
The report also points to demand across different job functions. Business Standard’s coverage of the survey said 64% of employers planned to expand sales and marketing teams. Engineering and IT followed, with 50% and 48% of employers, respectively, indicating expansion plans. Blue-collar roles were cited by 42%.
Digital literacy emerged as the most sought-after competency, cited by 59% of employers planning to expand their workforce. Communication skills were identified by 51%, teamwork and collaboration by 48%, and adaptability by 44%.
The findings suggest that employers are looking for a combination of technical capability and practical workplace skills. Digital literacy can include the ability to use business software, online collaboration tools and digital systems relevant to a role. The exact requirements vary by occupation and employer.
For candidates, this means that learning a technical skill alone may not be sufficient. The ability to communicate clearly, work with teams, adapt to changing processes and demonstrate practical experience can also influence employability.
Hiring Difficulties Could Slow Job Creation
Despite the stronger employment outlook, recruitment remains a significant challenge. Among employers planning to expand their workforces, 72% expected moderate to significant difficulty in hiring.
The report identified IT, sales and marketing, and engineering as functions facing notable recruitment challenges. IT was cited by 39% of employers, sales and marketing by 38%, and engineering by 32% as areas where hiring difficulties were anticipated.
The average time required to fill a role was estimated at 35-45 days, with specialist and site-based positions taking longer.
These challenges can affect how quickly companies convert recruitment plans into actual workforce expansion. A business may have approval to hire but still struggle to find candidates with the required skills, experience or location availability.
For employers, this can increase the importance of training, internal mobility and wider candidate searches. For job seekers, the findings reinforce the value of developing skills that match actual vacancies rather than relying only on broad claims about which industries are growing.
AI Adoption Is Growing, but Workforce Integration Remains Limited
Artificial intelligence is another important theme in the report. Around 85% of surveyed employers reported some level of AI or generative AI use, but only 13% said these tools had been adopted by more than half of their workforce.
The difference suggests that experimentation and limited use are more widespread than organisation-wide integration. Businesses may be introducing AI tools into selected tasks without redesigning every role or changing their overall staffing structures.
For workers, this shift creates both opportunities and uncertainty. Familiarity with relevant digital tools can help employees work more efficiently, but the effect of AI will differ by occupation, task and company. The survey does not establish that AI adoption has directly caused the hiring outlook for any specific sector.
BPO, which recorded a negative NEC of -0.2%, is one area to watch. Repetitive customer-service and back-office tasks can be more exposed to automation, although the outlook for any particular company will depend on its operations and technology strategy.
The broader lesson is that employers appear to be balancing technology adoption with the need for people who can apply it effectively. Digital capability, communication, problem-solving and role-specific expertise may therefore remain important as workplaces change.
The Bigger Picture
The 5.4% workforce-growth outlook points to stronger hiring intentions in the second half of FY27, but the picture is mixed across sectors, cities and job functions. E-commerce and technology startups, travel and hospitality, and retail lead the sector outlook, while BPO remains under pressure. The gap between employers’ recruitment plans and the difficulty of finding suitable candidates could also affect how much of the projected expansion is realised.
The survey further suggests that India’s employment market is being shaped by two parallel developments: demand for workers in expanding industries and the gradual integration of AI into existing business processes. Employers may need to invest in skills development and more flexible recruitment strategies, while job seekers can benefit from focusing on practical digital literacy and the competencies required for specific roles.
Looking Ahead
From October 2026 through March 2027, actual hiring data will be important in determining whether employers’ plans translate into workforce expansion. Recruitment outcomes will depend on business demand, the availability of qualified candidates and conditions within individual sectors. The TeamLease survey offers a forward-looking indicator, but it is not a final count of jobs created during the period.
For candidates and employers, the central issue will be matching skills with opportunities. Businesses that can identify suitable talent and train workers effectively may be better positioned to execute expansion plans, while job seekers should use sector trends as a guide for research rather than a guarantee of employment. Subsequent employment reports and company hiring announcements will help show whether the stronger outlook is sustained.
Frequently Asked Questions
1. What is India’s projected workforce growth for H2 FY27?
TeamLease Services projects Net Employment Change of 5.4% for October 2026 to March 2027, compared with 4.7% in the first half of FY27.
2. Which sectors are expected to lead hiring?
E-commerce and technology startups lead with a projected NEC of 12.6%, followed by travel and hospitality at 12.3% and retail at 10.3%.
3. Which Indian city has the strongest hiring intent?
Bengaluru leads the survey at 68%, followed by Hyderabad at 61% and Pune at 60%.
4. Are companies finding it difficult to hire?
Yes. Among employers planning to expand, 72% expect moderate to significant hiring difficulty. The report estimates that filling a role takes an average of 35-45 days.
5. What skills are employers looking for?
Digital literacy was the most frequently cited competency, followed by communication skills, teamwork and collaboration, and adaptability.
6. How widely are companies using AI?
The survey found that 85% of employers reported some AI or generative AI use, but only 13% said the tools were used by more than half of their workforce.
7. Does the 5.4% projection guarantee more jobs?
No. It is a survey-based employment outlook. Actual job creation will depend on whether employers carry out their plans and whether they can recruit suitable candidates.
Get the day’s top stories in your inbox
One concise email. No spam, unsubscribe anytime.
