E-commerce, logistics, and retail drive India's hiring surge in Tier-II cities: Report

New Delhi [India], October 15 (ANI): E-commerce, logistics, retail, automotive, FMCG, and EV sectors are leading a strong surge in India's hiring activity, spreading into emerging Tier-II regions, according to TeamLease Services' latest Employment Outlook Report for HY2 FY2025-26 (October-March).
The report shows that India's job market is expanding steadily, with a projected Net Employment Change (NEC) of 4.4 per cent. Sectors such as e-commerce and tech start-ups (11.3 per cent), logistics (10.8 per cent), and retail (8.1 per cent) top the hiring chart, while automotive, FMCG, and EV infrastructure are also growing due to policy support like PLI and EMPS schemes.
As India maintains strong 7.8 per cent GDP growth in Q1 FY2025-26, employers are aligning their workforce plans with business goals, festive demand, and digital expansion.
The survey reveals that, more than 56 per cent of employers intend to expand their workforce in the second half of FY2025-26, while 27 per cent plan to maintain stability and 17 per cent foresee rationalisation. Large enterprises continue to lead hiring activity, with smaller businesses taking a measured approach focused on returns and efficiency.
The demand for essential workplace skills is also rising. Employers ranked communication (89 per cent), basic computer literacy (81 per cent), and critical thinking (78 per cent) as the most sought-after capabilities.
Balasubramanian A, Senior Vice President, TeamLease Services, said, "India's workforce is entering a transformative phase where traditional hiring approaches are giving way to targeted, skill-driven strategies. According to our report, 61 per cent of employers are adopting selective, performance-based approaches for entry-level roles. By embedding capability-led, performance-linked practices, companies can not only meet today's business needs but also shape a resilient and future-ready workforce."
He added that government initiatives like the Employment-Linked Incentive (ELI) are also helping formalise the workforce. "Fifty-three percent of employers are aware of the scheme and 64 per cent rate skill development support as its most valuable feature. This reflects a broader trend of prioritising skill density, retention, and formalisation over short-term cost savings," Balasubramanian said.
Bengaluru, Hyderabad, and Mumbai remain top hiring destinations, supported by their strong base in technology, manufacturing, and services. However, the report notes that hiring intent is now spreading fast to smaller cities, marking a wider shift in India's employment geography. (ANI)