Business EconomyPosted at: Mar 13 2026 12:37PM


Flexi staffing employment grows in india, IT hiring shows momentum: Report

New Delhi, Mar 13 ( UNI) India’s flexi staffing industry continued to expand in the October–December quarter of 2025, with overall employment rising 4.4 per cent year-on-year, according to the latest employment trends report released by the Indian Staffing Federation (ISF) here.
The report showed that staffing companies added nearly 69,000 new formal flexi workers over the last four quarters, taking the total workforce represented by ISF members to around 1.91 million during the third quarter of FY26.
However, on a sequential basis, the industry witnessed a marginal decline of 0.5 per cent quarter-on-quarter, reflecting seasonal adjustments in hiring.
Sector-wise demand remained strong across several industries. Global Capability Centres (GCCs), e-commerce and logistics, manufacturing, FMCG, retail, healthcare, and tourism and hospitality were among the key sectors driving hiring activity during the quarter.
Manufacturing demand was supported by investments linked to production-linked incentive (PLI) schemes, while festive season consumption boosted recruitment in retail and consumer sectors.
The report noted that the general staffing segment recorded 4 per cent annual growth in new employment compared with the same quarter last year, although it slipped 0.6 per cent sequentially.
Demand in this segment was largely driven by FMCG and consumer durables, retail, logistics and transportation, e-commerce and quick commerce, and BFSI, with organised retail expansion and compliance requirements also contributing to hiring.
In contrast, the IT staffing segment posted robust momentum, registering 16.1 per cent year-on-year growth in employment and 2.3 per cent growth on a quarterly basis.
The recovery in technology hiring was largely led by tier-2 technology firms and Global Capability Centres, which accounted for about 73 per cent of new IT job additions, particularly in emerging areas such as artificial intelligence, cloud computing, cybersecurity and platform engineering.
The report also highlighted the growing role of the staffing sector in India’s formal job creation.
According to payroll data, manpower suppliers contributed around 41 per cent of net formal payroll additions during the quarter, underscoring the sector’s importance in expanding organised employment.
The staffing industry has also played a significant role in integrating young workers into the formal economy. Data indicates that nearly 59 per cent of new subscribers to formal payroll systems are in the 18–25 age group, suggesting that flexi staffing is increasingly becoming a key entry point for first-time job seekers.
Over the past decade, India’s formal contract staffing workforce has expanded steadily, reaching over 7 million workers in 2025. The sector also contributes significantly to the economy through salary payouts and statutory contributions, including social security and tax payments.
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