Business EconomyPosted at: Dec 18 2025 3:10PM


India’s staffing industry records strong Q2 FY26 growth led by FMCG, IT and GCC

New Delhi, Dec 18(UNI): India’s staffing industry delivered a steady and broad-based employment recovery in the second quarter of FY26, with new job creation rising 5 per cent quarter-on-quarter and 5.8 per cent year-on-year, reflecting improving demand across both traditional and new-age sectors, according to the latest employment growth report released by the Indian Staffing Federation (ISF) on Thursday.
The report, which tracked hiring trends between July and September 2025, indicated sustained momentum in formal workforce expansion, particularly in general staffing and IT staffing segments.
Demand from fast-moving consumer goods (FMCG), e-commerce, retail, logistics and energy sectors played a key role in driving overall growth, supported by seasonal consumption patterns and policy-led reforms.
The general staffing segment recorded a 5 per cent quarter-on-quarter increase in employment during Q2 FY26, while year-on-year growth stood at 5.5 per cent. Hiring activity was led by consumer-facing sectors such as FMCG and retail, alongside logistics and e-commerce companies that scaled up operations to manage seasonal demand spikes.
The report also highlighted increased hiring from banking, financial services and insurance (BFSI) firms, where digital transformation initiatives and compliance-related requirements continued to generate demand for skilled and semi-skilled temporary workforce. The introduction of GST 2.0 reforms further supported hiring momentum, particularly in supply chain and logistics roles, boosting demand for temporary staffing solutions.
The IT staffing segment emerged as a standout performer in Q2 FY26, posting a robust 16 per cent year-on-year growth and a 4.9 per cent quarter-on-quarter rise in employment. This marks the strongest annual growth seen in the segment over the past three years, signalling a clear turnaround after a prolonged slowdown.
A major driver of this recovery has been the expansion of Global Capability Centres (GCCs), which accounted for nearly 73 per cent of new employment generation in IT staffing during the quarter. Continued global demand for artificial intelligence, cloud computing, digital transformation services and data-driven technologies also supported hiring.
The report noted that the sequential recovery in IT staffing was particularly pronounced among tier-2 technology firms and consulting companies, which have begun scaling up operations as global client confidence improves.
Over the last four quarters, ISF member companies added a net 92,000 new formal temporary jobs, underscoring the growing role of the staffing industry in India’s labour market. With a year-on-year employment growth of 5.8 per cent, ISF members now collectively represent a workforce of around 1.9 million people, highlighting the sector’s contribution to job formalisation and workforce flexibility .
Industry leaders noted that temporary staffing is increasingly being used by companies to manage cyclical and seasonal demand, while also ensuring compliance, social security coverage and structured employment benefits for workers.
The report also reinforces the staffing sector’s role as a critical bridge between employers and India’s evolving workforce needs, especially at a time when businesses are prioritising agility, scalability and formal employment structures.
As economic activity strengthens and private sector confidence improves, the staffing industry is expected to remain a key engine of employment growth, contributing both to job creation and the long-term formalisation of India’s labour market.
UNI SAS KK
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