New Delhi [India], March 25 (ANI): India's employment landscape is set for a steady expansion, with a projected 4.7 per cent workforce growth for HY1 FY2026-27, driven by e-commerce and tech startups, healthcare and pharma, and manufacturing.

According to the latest Employment Outlook Report from TeamLease Staffing, the projected Net Employment Change (NEC) marked a consistent upward trajectory from the 2.8 per cent and 4.4 per cent growth recorded over the previous two half-yearly periods to 4.7 per cent. The improvement reflected a gradual strengthening of hiring confidence, with 58 per cent of employers now planning to expand their workforces.

The improved sentiment is most visible among large enterprises, where 74 per cent of firms indicated plans for expansion. In comparison, 57 per cent of mid-sized firms and 38 per cent of small businesses expect to increase their headcount, pointing to a recovery in employment growth that is largely driven by scale.

The momentum carries across both digital and core economy industries. E-commerce and tech startups lead the sectoral hiring with an NEC of 8.9 per cent, followed by healthcare and pharmaceuticals at 7 per cent, and manufacturing, engineering, and infrastructure at 6.6 per cent.

Hiring is also becoming more defined at a functional level, with demand concentrated in roles that directly influence business outcomes. Sales and marketing lead the trend, as 54 per cent of employers look to expand these teams, followed by strong demand in IT at 40 per cent and finance at 39 per cent.

The shift indicated a sharpening focus on revenue generation, digital transformation, and compliance priorities. Meanwhile, administrative and back-office functions remained largely stable as companies continue to prioritize automation and process optimization.

Geographically, hiring is concentrated in capability-driven urban centers rather than being dictated by population scale alone. Bengaluru led the country with 67.9 per cent employer expansion intent, followed by Hyderabad at 57.8 per cent and Pune at 56.1 per cent.

Mumbai and Chennai also witnessed steady momentum, supported by their established manufacturing and R&D ecosystems. The geographic shift highlighted talent availability and infrastructure readiness in becoming the primary drivers of location-based hiring.

Balasubramanian A, Senior Vice President at TeamLease Services, said, 'With the implementation of labour codes, 64% of organisations reporting an increase in employment costs and 80% redesigning salary structures, businesses are recalibrating workforce models to align with new statutory frameworks. At the same time, 62% are investing in HR and payroll system upgrades, signaling a clear move towards embedding compliance within digital infrastructure.'

The evolution in skill demand further reflected this transition. Digital literacy led the requirements at 77 per cent, followed by customer experience management at 68 per cent and communication skills at 61 per cent. Employers are placing greater emphasis on adaptability and data-driven capabilities as AI and analytics become more integrated into business functions.

Balasubramanian explained that this reflects a 'deeper transition towards disciplined, efficiency-led workforce strategies that prioritise long-term sustainability over short-term expansion.' (ANI)