Indian Employers Turn Cautious for July-Sep Quarter Amid Global Uncertainties: Report

• ManpowerGroup’s Net Employment Outlook for Q3 2026 stood at 48 per cent, down 20 points from the previous quarter.

• The survey covered more than 3,100 employers across India between April 1 and 30, 2026.

• Economic uncertainty and geopolitical challenges were the biggest reasons behind hiring caution.

Corporate India is expected to scale back hiring plans in the July-September quarter of this year, signaling a slowdown in hiring momentum, as employers are likely to opt for a more measured approach to hiring amid rising geopolitical challenges, a survey said on Tuesday.

According to ManpowerGroup’s latest Employment Outlook Survey, the Net Employment Outlook (NEO) for Q3 2026 stood at 48%, down 20 points from the previous quarter but stronger by 6 points since Q3 2025.

The Net Employment Outlook (NEO) is derived by taking the percentage of employers anticipating an increase in hiring activity and subtracting from this the percentage of employers expecting a decrease in hiring activity.

In the survey of more than 3,100 employers across India conducted from April 1 to 30, 2026, employers cited economic uncertainty, above AI, as the key driver of hiring uncertainty.

"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," said Sandeep Gulati, Managing Director, ManpowerGroup India and Middle East.

As per the report, 15% of those considering workforce expansion remain optimistic about identifying growth opportunities despite ongoing geopolitical challenges.

Among organisations planning to reduce staff, 31% cited economic challenges, while 27% pointed to geopolitical challenges as the primary factor impacting staff decisions. Around 26% of those uncertain about changing staffing cite Geopolitical challenges, and 20% want to keep things stable as a result.

"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," Gulati said.

According to Gulati, strong activity across manufacturing and services, along with the continued expansion of Global Capability Centres, 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.

A sector-wise analysis showed that employers across the Utilities & Natural Resources sector reported the highest NEO for Q3 at 61%, followed by finance and insurance at 56%, construction and real estate (55%) and professional, scientific and technical services at 52%.

"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," Gulati said.

As businesses continue to navigate changing market conditions, workforce strategies are becoming more focused on capability building, continuous learning, and long-term talent development. Organisations are looking beyond immediate hiring needs and investing in skills that can support productivity, innovation, and sustainable growth, said Gulati.

The survey further noted that AI continues to reshape how organizations think about productivity and the workforce, and the Q3 data shows employers aren’t ready to hand over the keys to AI entirely.

As employers navigate AI integration, people skills command the highest premiums, revealing where human value is increasingly concentrating: communication and collaboration (87%), problem solving (84%), time management (82%)/strong work ethic (82%), the survey said.