Corporate India’s Q2 Hiring Slows, Flexibility in Focus

Corporate India’s hiring momentum for the October–December 2025 quarter slowed marginally as firms recalibrated their workforce strategies, according to the ManpowerGroup Employment Outlook Survey (MEOS).

The Net Employment Outlook (NEO) stood at 40%, down 7% from the previous quarter, but up 18% year-on-year. The survey, conducted in July 2025, gathered responses from 3,149 employers across India.

India Still Among Global Leaders

Despite the quarterly slowdown, India remains one of the most optimistic hiring markets worldwide. With a 40% NEO, it ranked second globally, trailing only the UAE (45%). Other countries in the top five included Brazil (36%), Costa Rica (35%), and China (34%). By contrast, Poland, Romania, Hungary, Hong Kong, and Argentina recorded the weakest hiring expectations.

Economic and Sectoral Drivers

India’s robust outlook comes against the backdrop of projected 6.5% GDP growth, driven largely by services. However, muted foreign investment sentiment and wage pressures are prompting companies to adopt a cautious approach. Sectors such as Energy & Utilities, Financials & Real Estate, and Technology continue to drive hiring, underlining structural growth momentum.

Regional Trends in Hiring

Regionally, the North (45%) leads hiring intentions despite a 4% dip. The West (41%) remains stable, while the South (39%) strengthened by 5%. The East (32%), however, weakened significantly, down 33% compared to the previous quarter.

Shifting Workforce Strategies

Employers are increasingly adopting flexible staffing models, balancing permanent, temporary, and consultant roles to stay agile. Nearly 46% of employers cited attracting qualified candidates as their biggest challenge, while 42% highlighted work-life balance as the most effective retention strategy. 

Sectors such as Consumer Goods, Healthcare, IT, and Communication Services place the greatest emphasis on employee well-being.

At the same time, 36% of employers are hiring to adapt to technological changes, while 38% of staff reductions are attributed to automation.

Also Read: Oracle and Salesforce Cut Jobs Amid Deeper Tech Layoffs! 

Conclusion

Although India’s hiring outlook eased slightly for Q4 2025, the fundamentals remain strong, with the country continuing to lead globally. With wage pressures, talent shortages, and rapid technological shifts at play, the adoption of flexible workforce models and employee-centric policies will be critical in sustaining India’s long-term competitiveness in the global job market.

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