Indian employers adopt cautious hiring stance for July-Sep quarter amid global uncertainties: Report

Indian companies are poised to reduce hiring plans for the July-September quarter of 2026, reflecting a cautious approach among employers amid rising global uncertainties.

Overview of Employment Outlook Survey

The latest Employment Outlook Survey by ManpowerGroup reveals a 48% Net Employment Outlook (NEO) for Q3 2026, marking a significant drop of 20 points from the previous quarter. However, this figure is 6 points higher than that of Q3 2025.

Understanding the Net Employment Outlook

The NEO is calculated by subtracting the percentage of employers expecting a decrease in hiring from those anticipating an increase.

Reasons Behind Cautious Hiring

In a recent survey of over 3,100 employers across India conducted between April 1 and 30, 2026, economic uncertainty has emerged as the primary factor influencing hiring reservations, closely followed by geopolitical challenges.

Employer Sentiment

Sandeep Gulati, Managing Director of ManpowerGroup India and Middle East, commented, “India’s Q3 2026 hiring outlook remains the strongest globally, with a Net Employment Outlook of 48%, reflecting continued employer confidence despite a complex business environment.”

Optimism Amidst Challenges

• 15% of employers looking to expand their workforce are optimistic about finding growth opportunities.
• Challenges cited by organizations planning to reduce staff include:
• 31% attribute it to economic factors.
• 27% point to geopolitical factors.

Sector-Specific Insights

The survey indicates that certain sectors are more optimistic than others.

Leading Sectors in Hiring Potential

• Utilities & Natural Resources: 61%
• Finance and Insurance: 56%
• Construction and Real Estate: 55%
• Professional, Scientific and Technical Services: 52%

Transforming Workforce Priorities

There’s a notable evolution in the skills employers seek, focusing on talent with strong communication, collaboration, and teamwork abilities.

Key Skills in Demand

Gulati states, “Employers are investing in capability building, continuous learning, and long-term talent development.”

The Impact of AI on Hiring

The influence of AI on productivity and workforce dynamics is significant.

Skills Versus AI Integration

Though AI continues to reshape organizational thinking, employers remain cautious about relinquishing control to AI.

Top Human Skills Valued

• Communication and collaboration: 87%
• Problem-solving: 84%
• Time management: 82%
• Strong work ethic: 82%

The survey concludes that organizations are increasingly valuing human skills even as AI integration progresses.

(With inputs from PTI)