Job market in India on road to recovery in 2026: report
The report by Taggd and CII said the sentiment of hiring is shifting from cautious replacement to active workforce expansion
The job market in India is showing signs of recovery with overall hiring intent projected at 11% for 2026, up from 9.75% in 2025, according to the India Decoding Jobs 2026 Report released by Taggd and the Confederation of Indian Industry (CII).
According to the report, there has been a significant shift from cautious replacement hiring to active workforce expansion. The banking, financial services and insurance (BFSI) sector leads the charge with 20% hiring intent, followed by core industries including manufacturing and infrastructure at 12%.
"This resurgence marks a shift from recovery to reinvention, powered by digital acceleration, formalisation, and regional expansion," said Devashish Sharma, Co-Founder and CEO of Taggd.
A notable trend is the surge in demand for experienced professionals. Mid and senior-level talent with 6-15+ years of experience will comprise 55% of total hires in 2026, up sharply from 39% last year. This reflects India Inc.'s growing focus on leadership depth and execution capabilities, the report noted.
India's AI talent base, estimated at 23.5 lakh professionals, is growing at 55% year-on-year. Employers are prioritising skills in GenAI, cloud computing, cybersecurity, and data analytics. The recruitment process itself is being transformed, with 60% of recruiters now using AI for resume screening.
Tier II cities are strengthening their position, accounting for 32% of projected jobs as organisations tap into regional talent hubs. Tier I cities continue to lead at 53%, while Tier III locations show early signs of inclusion at 15%.
Expansion roles will constitute 40% of hires in 2026, up from just 20% last year, indicating stronger business confidence. Replacement hiring has eased to 60%, reflecting lower attrition and workforce stability.
Female hiring is projected to remain consistent at 30% for FY 2026-27, as Indian organisations maintain their commitment to diversity and inclusion despite global shifts toward meritocracy-based hiring.
Edited by Jyoti Narayan