India’s job market to expand led by E-commerce, logistics and retail; Tier-II cities see growing opportunities: Report

India's job market is experiencing a robust upswing, driven by sectors such as e-commerce, logistics, retail, automotive, FMCG, and electric vehicles. This growth is increasingly reaching Tier-II cities, indicating a broader geographical spread of employment opportunities, according to the latest Employment Outlook Report by TeamLease Services for the second half of fiscal year 2025-26.The report, cited by ANI, forecasts a 4.4% increase in net employment, with e-commerce and tech start-ups leading the charge at 11.3%, followed by logistics at 10.8%, and retail at 8.1%. The automotive, FMCG, and EV infrastructure sectors are also expanding, bolstered by supportive government policies like the Production Linked Incentive (PLI) and Employment-Linked Incentive (EMPS) schemes.As India sustains a GDP growth rate of 7.8% in the first quarter of FY2025-26, companies are aligning their hiring strategies with business objectives, festive season demands, and digital growth initiatives.The survey highlights that over 56% of employers plan to increase their workforce in the latter half of FY2025-26, while 27% aim to maintain current levels and 17% anticipate downsizing. Large corporations are at the forefront of this hiring surge, whereas smaller firms are adopting a more cautious approach, emphasizing efficiency and returns.There is a growing demand for essential workplace skills, with communication, basic computer literacy, and critical thinking being the most valued by employers, at 89%, 81%, and 78% respectively.Balasubramanian A, Senior Vice President at TeamLease Services, commented on the evolving nature of India's workforce, noting a shift from traditional hiring methods to more targeted, skill-focused strategies. "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 said.He also highlighted the impact of government initiatives like the Employment-Linked Incentive (ELI) in formalizing the workforce. "Fifty-three percent of employers are aware of the ELI scheme, and 64% consider skill development support its most valuable aspect, indicating a trend towards prioritizing skill enhancement and workforce formalization over short-term cost reductions," Balasubramanian added.While Bengaluru, Hyderabad, and Mumbai continue to be major hiring hubs due to their strong technology, manufacturing, and service sectors, the report notes a significant shift in hiring intent towards smaller cities, reflecting a changing employment landscape across India.