Hiring Outlook Brightens for FY27

Hiring demand strongest in ecommerce, tech startups, healthcare, and energy sectors, with Bengaluru, Hyderabad, and Pune leading.

Hiring Outlook

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Over four out of five employers intend to maintain or increase their workforce in the first half of 2026-2027 (FY27), with 58 per cent of employers planning to expand their workforce, while 26 per cent foresee no change between April and September 2026, according to a report by TeamLease.

The report, titled Employment Outlook Report, showed that Net Employment Change (NEC) -- a key measure of hiring sentiment -- has improved to 4.7 per cent for H1 FY27, up from 4.4 per cent in the previous half-year and 2.8 per cent a year earlier, indicating a gradual strengthening in job creation plans across sectors.

Key Points

Over 58 per cent of employers plan to expand workforce in H1 FY27, signalling steady recovery in hiring sentiment.
Net Employment Change rose to 4.7 per cent, indicating gradual improvement in job creation across industries and cities.
New labour codes increased employment costs, pushing companies to revise salaries, compliance systems, and workforce strategies.
Salary increments expected to remain stable, with EV, fintech, and healthcare sectors offering highest projected pay increases.

Hiring Outlook FY27

The findings are based on a survey of 1,268 employers across 23 industries and 20 cities, conducted between November 2025 and January 2026.

Of the respondents, 58 per cent expect to increase their workforce in the April to September period, while 26 per cent foresee no change and 16 per cent anticipate a reduction.

Net Employment Change Trends

The report also showed that 64 per cent of employers reported an increase in total employment costs following the implementation of the new labour codes, prompting companies to revise compensation structures and workforce strategies.

The report said the changes to the wage definition -- requiring basic pay to constitute at least half of total wages -- have increased statutory liabilities such as provident fund and gratuity contributions for many employers.

Labour Codes Impact on Salaries

As a result, 80 per cent of employers said they are revising salary structures, while 34 per cent indicated they may moderate wage growth to manage higher employment costs.

In addition, 62 per cent reported upgrading HR systems and compliance processes to align with the new regulatory framework.

Sector Hiring Demand FY27

According to the report, hiring demand in the upcoming half-year is expected to be led by sectors such as ecommerce and technology start-ups, healthcare and pharmaceuticals, and power and energy, which show the highest expansion intent among employers.

In terms of employment growth measured through NEC, ecommerce and tech start-ups recorded the highest projected increase at 8.9 per cent, followed by healthcare and pharma at 7 per cent, and manufacturing, engineering, and infrastructure at 6.6 per cent.

Salary Trends Across Sectors

Among cities, Bengaluru, Hyderabad, and Pune are expected to lead hiring activity during the April to September period, reflecting strong demand for technology, services, and engineering talent.

Salary increments in FY27 are expected to remain broadly stable across sectors, with the highest increases projected in EV and EV infrastructure (10.5 per cent), fintech (9.9 per cent), and healthcare (9.7 per cent), according to the report.

Core sectors such as manufacturing, FMCG, and automotive are likely to see increments in the 9 to 9.4 per cent range, while retail, BPO, and textiles are expected to record comparatively lower increases of below 8 per cent.

Across cities, increments are projected within a relatively narrow 8.8–9.8 per cent band, with Chennai and Pune leading at around 9.8 per cent, followed by Hyderabad, Ahmedabad, and Visakhapatnam at about 9.7 per cent.

Balasubramanian A, senior vice-president, TeamLease Services, said hiring had begun to recover in FY26 following policy measures aimed at boosting consumption, including changes in income-tax slabs, lower cash reserve ratio and repo rates, and the rollout of GST 2.0, along with a favourable monsoon.

However, he noted that hiring had remained relatively subdued over the previous five to six quarters due to muted consumption demand and weaker capital market performance.

Volatility in financial markets and geopolitical tensions have put pressure on company valuations and profitability, prompting firms to adopt cost-control measures, he said, adding that stronger consumption demand would be key to sustaining hiring growth.

"Since we are a consumption-driven economy, a slowdown in consumption along with weaker capital market performance had an impact on hiring," Balasubramanian said.

Hiring Outlook