TeamLease Services has released its latest Employment Outlook Report for October 2024 to March 2025. The report highlights a promising 7.1 per cent net employment growth rate for the period, up from 6.33 per cent in the previous half-year. This uptick reflects the collective outlook of 59 per cent of employers planning workforce expansion, with an additional 22 per cent maintaining their current staffing levels, even as 19 per cent foresee reductions. These findings reveal a dynamic hiring landscape where industry-specific demands and macroeconomic factors are significantly shaping employment trends.
Driving this growth are sectors such as logistics, EV & EV infrastructure, agriculture & agrochemicals, and e-commerce, which are heavily investing in infrastructural and technological advancements. Logistics, for instance, stands out with a 14.2 per cent net employment change, as 69 per cent of companies in the sector look to increase headcount. This growth is attributed to the sector’s adoption of 5G logistics, green supply chain initiatives, and benefits from National Logistics Policy implementations. Closely following logistics are EV and EV Infrastructure (12.1%), agriculture and agrochemicals (10.5%), and e-commerce and tech startups (8.9%), where startups are capitalising on AI-enabled customer insights, Web 3.0 applications, and seasonal demand from the festive period. As technology continues to evolve, the automotive industry is also seeing 8.5 per cent growth, spurred by integrated smart technologies, while the retail sector’s 8.2 per cent growth reflects the popularity of hyperlocal deliveries and smart-store concepts.
Alongside these industry trends, geographic shifts in job creation are emerging, with newer cities increasingly attracting talent. Locations like Coimbatore (24.6%) and Gurgaon(22.6%) are becoming job hubs, representing a decentralisation of employment opportunities beyond traditional metros. While Bengaluru (53.1%), Mumbai (50.2%), and Hyderabad (48.2%) remain central employment anchors with high workforce demand, the demand in cities like Coimbatore, Gurgaon, Jaipur, Lucknow, and Nagpur signals a broader spread of job growth across India, reinforcing the appeal of smaller cities as viable alternatives for job seekers and companies alike.
Reflecting on competencies, companies are not only looking to fill roles but are seeking specific skills that align with today’s operational and technological needs. New jobs for competencies such as problem-solving (35.3%), time management (30.4%), and after-sales service (28.4%) are becoming critical, while existing jobs with competencies like communication (57.8%), sales and marketing (44.6%), and critical thinking (37.3%) remain essential. In a competitive landscape, technical skills, including machinery operation and maintenance (24.1%) and team collaboration (23.1%), continue to underpin productivity as organisations expand.
An upsurge in technology adoption across industries further supports this focus on productivity. A notable 59% of companies are prioritizing cloud-based solutions to facilitate remote and hybrid work models, illustrating a shift toward flexible work environments. Automation tools, preferred by 45% of companies, are key in reducing repetitive tasks, and emerging technologies such as IoT (37%), AI/ML (36%), and advanced analytics (29%) are enabling real-time decision-making in sectors like automotive, healthcare, and manufacturing. This technological integration underscores the strategic role of digital transformation in enhancing workforce efficiency across the board.
In response to fluctuating demand, particularly around the festive season, sectors like e-commerce (89%), retail (86%), and logistics (83%) are leading in flexible workforce models, which help to scale operations and servicing effectively during peak periods. However, some industries, like automotive (82%), are adapting differently, opting to extend work hours rather than expanding their workforce, which reflects a resourceful approach to handling peak demand without adding to payroll costs.
Major economic initiatives are also shaping workforce expansion. Policies such as the Global Capability Centers (GCCs), which are projected to add USD 60 billion to India’s economy by 2025, are creating high-skill roles in technology and R&D. Meanwhile, the National Industrial Corridors aim to generate 1 million direct jobs and 3 million indirect jobs in manufacturing and logistics. The Semiconductor Mission seeks to add 80,000 jobs by 2025 through an investment of ₹1.25 lakh crore, underscoring India’s drive toward high-tech manufacturing.
In light of these developments, workforce strategies increasingly focus on talent acquisition and retention, balancing the economic and technological transformations influencing workforce composition. The BFSI, FinTech, and Power and Energy sectors are undergoing targeted expansion driven by AI integration, regulatory requirements, renewable energy roles, and digital financial inclusion. In response to these shifts, 58% of organizations are adjusting workforce strategies based on economic conditions, while 39% adapt to technological advancements that demand specific digital skills. Companies are equally mindful of retention, employing employee recognition programs (65%), career development opportunities (63%), enhanced work-life balance programs (53%) and flexible work hours (41%) to foster a supportive work environment that aligns with evolving employee expectations post-pandemic.
Reflecting on these findings, Kartik Narayan, CEO of TeamLease Staffing, stated, “The employment landscape is increasingly shaped by technology and policy-driven shifts. Our latest findings underscore the diversity in job growth across India, from established urban hubs to emerging cities, and reveal a workforce that is evolving rapidly to meet demands in sectors like logistics, EV, and tech startups. As companies embrace flexible staffing models, digital skillsets such as problem-solving, critical thinking, and cloud technology are not only in demand but essential for maintaining a competitive edge in today’s economy. Furthermore, our government’s infrastructure investments and initiatives like the Semiconductor Mission are not just creating jobs but establishing India as a global leader in high-tech manufacturing. By aligning talent acquisition strategies with these trends, companies are poised to sustainably support India’s growth trajectory.”
