India expected to see 7.1% workforce growth in FY25 second half, driven by technological and sectoral shifts: Report

Logistics, EV & EV infra, agriculture & agrochemicals, e-commerce to lead workforce expansion: TeamLease Services report

India is projected to experience a robust 7.1% net employment growth in the second half of FY25, marking a significant increase from the 6.33% growth rate in the previous half-year, according to a report released by TeamLease Services on Monday. This growth reflects an optimistic outlook from employers, with 59% planning to expand their workforce, while 22% intend to maintain current staffing levels. However, 19% foresee potential reductions in their workforce.

The report, based on data from October 2024 to March 2025, highlights a dynamic employment landscape shaped by sector-specific demands and macroeconomic factors. Key sectors driving job growth include logistics, electric vehicles (EV) and EV infrastructure, agriculture and agrochemicals, and e-commerce, all of which are heavily investing in infrastructure and technological advancements.

Emerging job hubs beyond traditional metro cities also reflect a decentralization of employment opportunities. Cities like Coimbatore (24.6%) and Gurgaon (22.6%) are becoming significant centres for job creation, highlighting a shift toward smaller cities as viable alternatives for both job seekers and employers. While Bengaluru (53.1%), Mumbai (50.2%), and Hyderabad (48.2%) remain major employment centres, cities like Jaipur, Lucknow, and Nagpur are showing increasing demand for talent.

“The employment landscape is rapidly evolving, shaped by technology, policy shifts, and growing industry demands. Our latest findings underscore the diversity of job growth across India, extending from established urban hubs to emerging cities, especially in sectors like logistics, EV, and tech startups,” said Kartik Narayan, CEO of TeamLease Staffing.

As businesses continue to adapt to technological advancements, there is a strong demand for digital skill sets such as problem-solving, critical thinking, and cloud technology. Companies are not only seeking to fill positions but are increasingly looking for candidates with competencies that align with today’s technological and operational needs.

The report revealed a rising need for competencies in problem-solving (35.3%), time management (30.4%), and after-sales service (28.4%), while traditional roles requiring communication (57.8%), sales and marketing (44.6%), and critical thinking (37.3%) remain essential.

The push for digital transformation is also evident in the widespread adoption of cloud-based solutions, with 59% of companies prioritizing cloud technologies to support remote and hybrid work models. This shift underscores the growing emphasis on flexible work environments across industries.

Additionally, sectors like BFSI, FinTech, and Power and Energy are expanding due to the integration of AI, regulatory changes, renewable energy roles, and digital financial inclusion. The government’s infrastructure initiatives, such as the Semiconductor Mission, are also creating high-tech manufacturing jobs, further positioning India as a global leader in these sectors.

“As companies align talent acquisition strategies with these emerging trends, India is poised for continued growth. The nation’s workforce is evolving rapidly to meet the demands of a modern, tech-driven economy, and these changes are set to support India’s long-term growth trajectory,” Narayan added.

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