The Q3 2026 survey of more than 3,100 Indian employers shows a Net Employment Outlook of 48 percent, as Sandeep Gulati, Managing Director, ManpowerGroup India and Middle East, said employers remain positive but more selective.
Hyderabad, June 9, 2026: Indian employers are expected to slow hiring plans in the third quarter of 2026, according to ManpowerGroup’s latest Employment Outlook Survey.
The survey, conducted from April 1 to 30, 2026, covered more than 3,100 employers across India. The Net Employment Outlook for Q3 2026 stands at 48 percent, down 20 points from the previous quarter, but up 6 points compared with Q3 2025.
Despite the quarterly decline, India continues to record the strongest employment outlook globally, leading the global average by 22 points.
Sandeep Gulati, Managing Director, ManpowerGroup India and Middle East, said, “India’s Q3 2026 hiring outlook remains the strongest globally, with a Net Employment Outlook of 48%, reflecting continued employer confidence in the country’s growth trajectory despite an increasingly complex business environment. While the outlook has moderated from 68% in the previous quarter, the shift reflects a more measured approach to hiring rather than a slowdown in business confidence. Strong activity across manufacturing and services, along with the continued expansion of Global Capability Centers, continues to support hiring demand. At the same time, employers are navigating a broader mix of challenges, including AI-led workforce optimization, softer entry-level hiring demand, global trade uncertainty, and geopolitical developments that are impacting supply chains and business costs. As a result, organizations remain positive about growth but are becoming more selective in their hiring decisions.”
The survey found that 59 percent of employers expect hiring to increase, down from 74 percent in Q2 2026. Another 29 percent expect to maintain current staffing levels, while 11 percent expect a decrease and 1 percent remain unsure.
Economic and geopolitical challenges are influencing workforce decisions. Among organisations reducing staff, 31 percent cited economic challenges and 27 percent pointed to geopolitical issues. Among employers unsure about staffing changes, 26 percent cited geopolitical challenges and 20 percent said they wanted to keep workforce levels stable.
Hiring sentiment eased across eight of nine sectors. Trade and Logistics recorded a 24 point quarterly decline, Public Sector, Health and Social Services declined by 23 points, and Information declined by 21 points. Hospitality was the only sector to record quarterly growth, rising by 6 points from Q2 2026.
Utilities and Natural Resources reported the strongest sector outlook in India at 61 percent, despite weakening by 9 points from the previous quarter. Finance and Insurance recorded one of the strongest yearly gains, rising by 14 points from Q3 2025.
Regionally, the East remained the strongest hiring market with a Net Employment Outlook of 52 percent, even after a 16 point decline from Q2 2026. The South reported the strongest yearly improvement, rising by 10 points from Q3 2025.
Large organisations with 1,000 to 4,999 employees were the most optimistic, with a Net Employment Outlook of 56 percent.
The survey also showed that employers continue to value human judgement in hiring. A person reviewing resumes remained the most valued hiring resource at 75 percent, above AI driven resume screening, AI career development tools and automated communication tools, each at 72 percent.
Employers are also placing a premium on people skills. Communication and collaboration were valued by 87 percent of employers, followed by problem solving at 84 percent, and time management and strong work ethic at 82 percent each.
On technical skills, 84 percent of employers said they were willing to pay a premium for AI model and app development and AI literacy skills. This was followed by sales and marketing skills at 79 percent and traditional IT and data skills at 77 percent.
Gulati added, “The survey also points to a clear evolution in workforce priorities. Employers are increasingly seeking talent with strong communication, collaboration, and teamwork skills, reflecting the growing need for adaptable and resilient workforces. As businesses continue to navigate changing market conditions, workforce strategies are becoming more focused on capability building, continuous learning, and long-term talent development. Organizations are looking beyond immediate hiring needs and investing in skills that can support productivity, innovation, and sustainable growth.”
The Q3 2026 report is part of ManpowerGroup’s Employment Outlook Survey, now in its 64th year. The next survey will be released in September 2026 and will cover hiring expectations for Q4 2026.
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