India’s employment outlook remains strong with a Net Employment Outlook (NEO) of 42% for Q3 2025, according to a report by Manpower Group. Key sectors driving optimism include IT, Energy & Utilities, and Financial Services, amid rising automation and AI skill demand. Regionally, North India leads hiring intent, and large organizations show strong outlooks. According to the survey, about.54% of employers plan to expand their workforce, 32% aim to maintain current staffing levels, 12% foresee a reduction, and 2% remain unsure about their hiring intentions.
According to a recent employment outlook survey conducted by Manpower Group, the hiring activity across India’s corporate sector is expected to remain steady over the next three months. The survey reveals a positive sentiment among employers, particularly in the Information Technology (IT), Energy & Utilities, and Financial Services sectors, which are driving this optimism due to digital transformation and demand for skilled professionals, especially in artificial intelligence (AI).
According to Sandeep Gulati, Managing Director of Manpower Group India and Middle East, the robust hiring sentiment in these sectors is a reflection of companies actively expanding and accelerating their digital journeys.
He stated that as the third quarter of 2025 begins, India maintains a strong employment outlook with a Net Employment Outlook (NEO) of 42%— ranking among the highest globally. Amid global geopolitical challenges and trade disruptions, Indian employers are taking decisive action, with 82% ramping up automation investments and 67% reshaping workforce strategies to keep pace with changing skill requirements, Mr Gulati noted.
The survey published by Reuters highlights that the private services sector is experiencing growth and anticipates economic gains from shifting global trade dynamics.
The Net Employment Outlook (NEO) for India in the third quarter of the calendar year (Q2 of the financial year) stands at 42%, making it the second-highest globally, just behind the United Arab Emirates (UAE). The NEO is calculated by subtracting the percentage of employers expecting a decrease in staffing levels from those expecting an increase. Although the current quarter’s NEO is down by one point from the previous quarter, it has improved by 12 points year-on-year, indicating a strong recovery and growing employer confidence.
Sector wise, the IT sector is expected to see significant hiring in the coming quarter, with 46% of surveyed employers planning to hire. Despite a slight year-on-year decline of 11 points, the sector continues to remain a key employment driver due to ongoing digital transformation and the growing need for AI-related skills.
However, it is the Energy & Utilities sector, which is set to lead in employment growth with an NEO of 50% — marking an 18-point increase both quarter-on-quarter and year-on-year. The demand is fuelled by the sector’s transformation and its resilience amid global trade uncertainties. The Industrials & Materials sector also shows a strong outlook at 54%, followed by Financials & Real Estate at 43%, and Healthcare & Life Sciences at 38%.
Regionally, the North of India leads in hiring intent with an NEO of 46%, up by 2 points from the previous quarter and 10 points from Q3 2024. The East (44%), West (41%), and South (36%), all showing strong employment prospects, follow the North.
In terms of company size, large organizations with 1,000 to 4,999 employees exhibit the most optimistic hiring plans, with an NEO of 52%. While this is a 6-point decrease from the last quarter, it reflects a 10-point increase over the same period last year, indicating solid year-over-year growth.
The survey also sheds light on the impact of global trade uncertainty on hiring plans, with 90% of companies factoring it into their decision-making. This influence is most evident in the Energy & Utilities (94%), Information Technology & Communication Services (93%), and Financials & Real Estate (91%) sectors.
Globally, the United Arab Emirates ranks highest in employment outlook, with 48% of employers intending to hire. India follows closely at 42%, while Costa Rica ranks third with 41%. Brazil (33%) and the Netherlands (30%) complete the top five, making the Netherlands the only European nation among the global leaders in hiring outlook.
The report is based on responses from 3,146 employers across India, collected in April 2025. It reveals that 54% of employers anticipate increasing their workforce, 32% intend to keep staffing levels unchanged, 12% expect a reduction, and 2% are uncertain about their hiring plans. The report concludes that the overall sentiment remains upbeat, pointing to a positive employment scenario in the months ahead.
