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2025 closed with a lowered hiring sentiment, according to the latest ManpowerGroup Employment Outlook Survey with the Q4 Net Employment Outlook (NEO) standing at 40%. The results, based on responses from 3,149 employers across India during July 2025, show the Outlook weakening by 7% from the previous quarter while improving18% year-on-year. Indian employment Outlook looks robust in a mixed economy. Despite a projected 6.5% GDP growth driven by the services sector, weakened foreign investment sentiment is prompting firms to remain cautious about expansion. As a result, employers are expected to limit hiring and continue facing wage pressures in Q4 2025 leaving the labor market cautiously optimistic.
Although India’s employment Outlook has eased slightly this quarter, the fundamentals of our labor market remain strong with sectors such as Energy & Utilities, Financials & Real Estate, and Technology continuing to drive hiring, underscoring the country’s structural growth momentum. A key trend emerging from MEOS Q4 is the increasing reliance on workforce flexibility, with employers balancing permanent, temporary, and consultant talent to stay agile in a dynamic environment. As businesses manage wage pressures, technological shifts, and evolving employee expectations, adaptive workforce strategies will be central to sustaining India’s long-term competitiveness,” said Mr. Sandeep Gulati, Managing Director, ManpowerGroup India and Middle East.
Used internationally as a bellwether of labor market trends, the NEO is calculated by subtracting the percentage of employers who anticipate reductions in staffing levels from those who plan to hire.
Q4 KEY FINDINGS
- The majority of employers (55%) anticipate an increase in hiring, while 31% expect to maintain current staffing levels, 12% anticipate a decrease, and 2% are unsure.
- Energy & Utilities leads the pivot, with an Outlook of 59%, showing an increase of 18% since the previous quarter and 74% since Q4 2024. This quarter marks the highest NEO recorded since we started tracking in 2023. Globally, India is the front-runner for its employment hiring expectations, above the sector’s global average NEO by 39 points.
- Financial & Real Estate emerges as the second leading sector in hiring intentions at 52%, marking an 18% year- over-year increase. This represents the sector’s highest Outlook since Q4 2022. Other strong performers include - Information Technology (48%), Healthcare & Life Sciences/Transport, Logistics and Automotive at 44% Outlook each.
- The most competitive region in India is the North (45%) although it has weakened by 4%. It is followed by the West (41%), which remains stable, the South (39%) with an Outlook that has strengthened by 5%, and the East (32%) which has weakened significantly by 33% vs the last quarter.
- Indian employers in large organizations with 1000-4999 employees are the most optimistic with a NEO of 54%, rising by 2% since last quarter and 17% since Q4 2024. Globally, India’ employment expectations in organizations of this size is twice the average NEO which stands at 27%.
WORKFORCE TRENDS
Beyond headcount, employers face mounting talent challenges. Nearly half (46%) cite attracting qualified candidates as their biggest obstacle, while 42% see work-life balance as the most effective retention strategy. One-third of employers (36%) are hiring specifically to keep pace with technological change. Among those reducing staff, nearly one-third (38%) cite automation as the main driver for roles reductions.
- Employers in India rate their hiring process: While nearly half said that their biggest challenge is attracting qualified candidates, the majority (80%) of employers feel confident their hiring process is effective at selecting the right people for the right roles.
- Evolving workforce strategies to meet the moment: Temporary workers are nearly catching up with full-time employees to handle specialized short-term tasks and surge support.
- Core roles remain anchored in permanent staffing: Employers continue to rely on permanent employees for administrative tasks (50%), customer service (45%), and operational support (47%).
- Work-life balance tops the list of effective retention strategies: 42% report work-life balance as the top factor influencing employee retention in their organization. This especially holds true for the following sectors: Consumer Goods & Services (50%), Communication Services/ Healthcare & Life Sciences/ Information Technology (43%).