New Delhi, June 9 (IANS) India has retained the strongest hiring outlook globally for the third quarter of 2026, with employers reporting a Net Employment Outlook (NEO) of 48 per cent, though companies are expected to adopt a more measured approach to recruitment amid evolving business conditions, according to a report released on Tuesday.

According to an analysis by ManpowerGroup, the Net Employment Outlook (NEO) is 48 per cent for the July-September quarter.

Around 60 per cent of employers expect to increase hiring during the quarter, while 29 per cent plan to maintain current staffing levels.

About 11 per cent anticipate a reduction in workforce and 1 per cent remain uncertain about their hiring plans, it said.

“India’s Q3 2026 hiring outlook remains the strongest globally, 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.

He said the moderation from the previous quarter reflected a more cautious and selective hiring approach rather than a decline in business confidence.

Strong activity in manufacturing and services, along with the continued expansion of Global Capability Centres (GCCs), continues to support hiring demand, he added.

At the same time, employers are navigating challenges such as AI-led workforce optimisation, softer demand for entry-level hiring, global trade uncertainty and geopolitical developments affecting supply chains and business costs.

Sector-wise, hiring sentiment weakened across eight of the nine sectors tracked in the survey on a quarter-on-quarter basis.

The trade and logistics sector recorded the sharpest decline in hiring expectations, followed by the public sector, health and social services, and information sectors.

Hospitality was the only sector to report an improvement in hiring expectations compared to the previous quarter.

The utilities and natural resources sector emerged as the most optimistic, posting a NEO of 61 per cent.

Despite a quarterly decline, the sector’s outlook was 12 percentage points higher than a year ago and ranked the highest globally.

In addition, the finance and insurance sector was among the strongest performers on a yearly basis, a 14-point increase in hiring expectations compared to the third quarter of 2025.

Regionally, eastern India reported the strongest hiring outlook at 52 per cent, while southern India recorded the highest year-on-year improvement, with expectations rising by 10 percentage points.

Moreover, the report highlighted the growing role of artificial intelligence in workforce planning, while underscoring the continued importance of human skills.

About 75 per cent of employers said a person reviewing resumes remains the most valuable hiring resource, ahead of AI-based recruitment and screening tools.

Communication and collaboration skills were identified as the most sought-after capabilities, followed by problem-solving, time management and a strong work ethic.

According to the report, more than 84 per cent of employers are willing to pay a premium for AI-related skills, including AI model and application development as well as AI literacy.

–IANS

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