Bengaluru leads hiring expansion at 68% as employers seek more talent: Report

Bengaluru has emerged as the top destination for workforce expansion in the second half of financial year 2026-27, with 68% of employers identifying the city as an expansion target. Hyderabad and Pune follow, as companies across India signal stronger hiring intent despite persistent talent shortages.

According to the latest Employment Outlook Report from staffing firm TeamLease Services, 60% of employers plan to expand their workforce between October 2026 and March 2027. Of these, 22% expect their workforce to grow by more than 10%, signalling stronger hiring momentum in the second half of the financial year.

The report is based on a survey of 1,239 employers across 23 industries and 20 cities. The fieldwork was conducted during July and August 2026.BENGALURU TOPS WORKFORCE EXPANSION TARGETS

Bengaluru leads the list of cities targeted by employers for workforce expansion, with 68% of respondents identifying the city.

Hyderabad follows at 61%, while Pune stands at 60%. Mumbai and Delhi feature next, with 55% and 53% of employers, respectively, targeting the two cities. Screenshot taken from the report. HIRING INTENT RISES WITH ORGANISATIONAL SIZE

Hiring plans also vary depending on the size of an organisation. Around 66% of large enterprises plan to expand their workforce, compared with 59% of medium-sized enterprises and 53% of start-ups, micro and small businesses.

The figures show that hiring intent rises with an organisational scale, with large enterprises recording the highest proportion of employers planning workforce expansion.E-COMMERCE, TECH START-UPS LEAD HIRING DEMAND

The strongest employment growth is expected in sectors linked to digital businesses, consumption and emerging industries.

E-commerce and tech start-ups lead the sector-wise employment outlook with a Net Employment Change (NEC) of 12.6%, followed by Travel and Hospitality at 12.3% and Retail at 10.3%.

Other sectors showing strong hiring intent include Automotive at 10.1%, EV and EV Infrastructure at 9.7%, and Banking at 9.2%. The sector-wise findings indicate strong employment intent across digital, consumption-led and emerging sectors.TALENT AVAILABILITY REMAINS A KEY CHALLENGE

Despite the stronger hiring outlook, employers may face difficulties in converting hiring plans into actual workforce expansion.

Among employers planning to grow their workforce, 72% expect moderate to significant difficulty in hiring, making talent availability a key challenge.

The anticipated hiring challenges are particularly prominent in certain functions. IT is cited by 39% of employers, followed by Sales and Marketing at 38% and Engineering at 32%.

The report also puts the average time-to-fill roles at 35 to 45 days, with specialist and site-based positions taking longer.

This suggests that while employers are planning to increase their workforce, the availability of suitable candidates could affect the pace at which companies are able to fill positions.60% EMPLOYERS PLAN WORKFORCE EXPANSION

The overall employment outlook also points to stronger workforce expansion plans in the second half of FY27. Six in ten employers plan to expand their workforce, while 22% expect workforce growth of more than 10%.

The broader hiring sentiment comes as employers assess their workforce requirements amid changing economic conditions, organisational priorities and technological developments.AI ADOPTION IS SPREADING ACROSS WORKPLACES

The changing skills landscape comes alongside increasing use of artificial intelligence and generative AI. Around 85% of employers reported some workforce usage of AI or GenAI tools, although the extent of adoption varies.

Only 13% of organisations have embedded AI tools across more than 50% of their workforce, indicating that while AI usage has reached a large share of organisations, deeper integration remains limited.WHAT IT MEANS FOR INDIA'S JOB MARKET

The report points to stronger hiring intent in the second half of FY27, with workforce expansion plans varying across cities, sectors and organisational sizes.

Bengaluru leads the city-wise expansion targets at 68%, followed by Hyderabad at 61% and Pune at 60%. Pune also recorded the largest gain this half-year.

At the sector level, e-commerce and tech start-ups, Travel and Hospitality, Retail, Automotive, EV and EV Infrastructure and Banking are among the sectors showing stronger employment intent.

However, the ability to translate hiring plans into actual workforce expansion could depend on talent availability. With 72% of employers planning to expand expecting moderate to significant difficulty in hiring, IT, Sales and Marketing, and Engineering are among the functions facing the highest anticipated hiring challenges.

For job seekers, the report highlights the importance of skills such as digital literacy, customer experience management, communication, teamwork, adaptability, and market research and consumer insights as employers prepare for the second half of FY27.- EndsPublished By: Karan YadavPublished On: Sep 24, 2026 14:48 IST