According to ManpowerGroup’s latest Employment Outlook Survey, the Net Employment Outlook (NEO) for Q3 2026 stood at 48 per cent, 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 per cent, 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 per cent of those considering workforce expansion remain optimistic about identifying growth opportunities despite ongoing geopolitical challenges.
Among organisations planning to reduce staff, 31 per cent cited economic challenges, while 27 per cent pointed to geopolitical challenges as the primary factor impacting staff decisions. Around 26 per cent of those uncertain about changing staffing cite Geopolitical challenges, and 20 per cent want to keep things stable as a result.”While the outlook has moderated from 68 per cent 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 per cent, followed by finance and insurance at 56 per cent, construction and real estate (55 per cent) and professional, scientific and technical services at 52 per cent.
“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 per cent), problem solving (84 per cent), time management (82 per cent)/strong work ethic (82 per cent), the survey said.