H2 FY27 Hiring Intent at 5.4% as E-Commerce Leads Growth

Hiring Intent Projects 5.4% Growth in FY27, Driven by E-Commerce Surge

As hiring momentum strengthens, e-commerce emerges as a key driver of employment growth in India.

E-Commerce and Technology Lead Employment Growth

According to the TeamLease report, the hiring intent is set to rise significantly, with 60% of employers planning to expand their workforce in the second half of FY27. This marks a notable increase from 4.7% in the first half, reflecting the highest employment growth seen in the past three half-years. The e-commerce and technology sectors are expected to experience the most robust growth, with a net employment change (NEC) of 12.6%. This is followed closely by travel and hospitality at 12.3% and retail at 10.3%.

Conversely, the BPO sector is projected to face challenges, with a negative NEC of -0.2%. This decline is attributed to the sector’s vulnerability to automation and AI, which have increasingly replaced repetitive tasks traditionally performed by BPO employees. Balasubramanian A, Senior Vice President at TeamLease Services, noted that the BPO industry’s struggles predate the rise of AI, but the technology has exacerbated these issues.

Large Enterprises Drive Hiring Intent

The report highlights a disparity in hiring intentions between large enterprises and smaller businesses. Approximately 66% of large companies plan to increase their workforce, compared to 59% of medium-sized enterprises and 53% of startups and micro businesses. This trend underscores the financial capacity of larger firms to invest in technology and enhance productivity, which is crucial for leveraging India’s vast working-age population.

By function, sales and marketing roles are expected to see the strongest demand, with 64% of employers intending to expand these teams. Engineering and IT roles follow closely at 50% and 48%, respectively. Interestingly, blue-collar jobs are also anticipated to grow, with a 42% hiring intent.

Regional Variations in Hiring Intent

Geographically, Bengaluru stands out as the most attractive city for workforce expansion, with 68% of employers indicating plans to hire there. Other cities like Hyderabad (61%), Pune (60%), Mumbai (55%), and Delhi (53%) also show strong hiring intentions. This regional focus reflects the concentration of tech and e-commerce firms in these urban centers, further driving employment growth.

Skills in Demand and Compliance Challenges

Digital literacy emerged as the most sought-after skill, with 59% of employers prioritizing this competency. Other important skills include communication (51%) and teamwork (48%). However, the report also raises concerns about the impact of new labor codes on compliance costs, with 39% of employers expecting increased efforts in payroll administration.

Despite widespread adoption of AI tools, deeper integration remains limited, with only 13% of employers reporting that more than half of their workforce utilizes such technologies. This indicates a significant opportunity for growth in AI application across various sectors.

Key Highlights

• Projected net employment change of 5.4% for October 2026-March 2027.
• E-commerce and technology sectors expected to lead with a NEC of 12.6%.
• BPO sector faces a negative employment outlook of -0.2%.
• Bengaluru identified as the top city for hiring, with 68% of employers planning to expand.
• Digital literacy is the most in-demand skill among employers.

Investor Note: As hiring intentions rise, particularly in e-commerce and technology, investors should monitor the evolving landscape for potential opportunities in these sectors, while remaining cautious of compliance costs and the impact of AI on traditional job roles.