Overview of Hiring Activity
India’s white-collar hiring market entered a period of measured consolidation in May 2026, with the foundit Insights Tracker (fit) recording a 4% year-on-year decline and a 6% drop over the previous month. Hiring is also down 10% over the last three months and 9% over the last six months, reflecting sustained employer caution rather than a sharp correction. The index stood at 348 in May 2026, down from 361 a year earlier.
The overall softening is broad-based, with companies becoming increasingly selective in their talent investments — prioritising critical technology functions, niche digital capabilities, and roles that directly support business growth. Hiring volumes have eased even as demand for specialised skills holds firm, pointing to a shift from expansion to optimisation.
11 of the 27 industries tracked recorded annual growth, and 9 of 13 functional categories grew year-on-year, indicating pockets of genuine resilience beneath the headline decline.
Hiring Trends by Industry (YoY change)
In demand
Travel & Tourism (+26%) The strongest industry performer, with a 5% month-on-month rise as well. Growth is being driven by rising domestic and international travel demand, expanded airline networks, hospitality infrastructure investments, and the growing prominence of experiential tourism. Tier-2 and tier-3 cities are contributing meaningfully through airport expansion and government-backed domestic tourism circuits.
Automotive (+12%) Solid annual growth accompanied by a 4% month-on-month gain. The sector’s transition towards electric mobility, connected vehicles, advanced manufacturing, and supply chain modernisation is keeping talent demand elevated. The rapid expansion of India’s EV ecosystem is creating opportunities across vehicle manufacturing, battery production, charging infrastructure, and component design, while smart manufacturing and AI-enabled production systems are reshaping role requirements beyond traditional automotive hubs.
Healthcare & Pharmaceuticals (+11%) Continued its steady upward trajectory, adding 2% month-on-month. Persistent workforce shortages and sustained demand for clinical and healthcare support roles are keeping recruitment elevated across public and private settings.
Real Estate (+11%) Strong annual growth, though down 7% month-on-month, reflecting some seasonal moderation after a period of elevated activity.
FMCG (+9%) A notable annual gain, though month-on-month momentum eased by 7%.
Construction & Engineering (+5%) Modest annual growth supported by infrastructure activity, with a 3% uptick over the previous month as well.
Manufacturing (+4%) Positive annual growth despite a 7% month-on-month dip, reflecting selective hiring outside core sub-sectors.
Holding steady
Media & Entertainment (0%) Flat year-on-year, though down 8% over the previous month.
Facing challenges
Energy (−4%) Moderate annual decline with a 5% month-on-month drop.
IT – Software & Services (−4%) A 4% annual decline with a 4% month-on-month dip, reflecting ongoing workforce optimisation and a shift toward leaner, higher-skilled headcount models. Demand for specialised technology talent remains resilient within the broader softness.
BFSI (−8%) A notable pullback as banks and financial institutions prioritise automation and productivity over net hiring growth. The sector was down 5% month-on-month as well.
Retail (−8%) Continued weakness driven by muted consumption and efficiency-led cost control in consumer-facing formats.
Logistics & Transportation (−18%) A steep annual decline, reflecting structural shifts in fulfilment and delivery operations.
Import & Export (−23%) The sharpest annual decline across all tracked industries, pointing to continued pressure from softer global trade volumes.
Hiring Trends by Functional Area (YoY change)
In demand
IT (+34%) The strongest functional performer by a wide margin, despite a marginal 1% month-on-month dip. Software developers, AI/ML engineers, data scientists, and full-stack developers continue to dominate hiring demand as organisations expand digital capabilities and modernise technology stacks.
There is a growing preference for “build-first” talent — professionals who can develop scalable platforms, optimise digital products, and accelerate technology deployment. Bengaluru and Hyderabad remain the leading hubs, with Coimbatore, Indore, and Nagpur registering growing demand.
Marketing & Communications (+27%) A strong annual gain with a 1% month-on-month rise, reflecting sustained investment in brand building, customer engagement, and digital growth.
Demand is high for digital marketers, content strategists, brand managers, social media professionals, PR specialists, and performance marketing talent. A notable shift is the move from volume-based to precision marketing, with organisations leveraging AI, first-party data, and marketing automation.
Medical Roles (+26%) Robust annual growth, though marginally down 1% over the month.
Engineering & Production (+7%) Positive annual growth alongside a 2% month-on-month gain, making it one of the few functional areas with momentum on both timeframes.
Customer Service (+4%) Modest positive growth annually with a 2% month-on-month rise.
Finance & Accounting (+4%) Positive year-on-year, though down 3% month-on-month.
Legal Roles (+1%) Marginal annual growth with a 2% month-on-month uptick.
Procurement & Supply Chain (+1%) Broadly flat, down 1% over the previous month.
Facing challenges
Creative Roles (−2%) A marginal annual decline.
HR & Admin (−3%) Firms continue to limit back-office expansion as cost discipline persists.
Hospitality Roles (−5%) Operators remain focused on leaner staffing models as post-pandemic demand stabilises.
Sales & Business Development (−7%) The weakest functional category annually, flat month-on-month.
Diversity Hiring Trends
Diversity hiring was a clear outlier in May 2026 — growing 21% year-on-year even as the overall index declined. Month-on-month, D&I hiring dipped 2%, in line with broader market softening, but the annual trajectory remains decisively upward, with only two negative months across the past twelve.
Mix Shift: D&I and PwD Categories Expand
The more significant story this year is compositional. Women continue to lead diversity-focused hiring but their share has narrowed from 68% to 56% — not because women’s hiring has weakened, but because the overall D&I pie has grown and broadened.
The D&I category, covering LGBTQIA+ individuals, neurodiverse professionals, and other inclusive hiring mandates, now accounts for 32% of all diversity-focused hires.
PwD hiring has seen the sharpest proportional rise, growing from 5% to 12%, driven by accessibility investments, inclusive workplace design, and ESG compliance requirements.
Geography: Bengaluru Takes the Lead
Bengaluru has overtaken Delhi-NCR as the leading diversity hiring city, growing from 15% to 19% of total D&I hires.
Hyderabad’s rise from 10% to 15% is the standout shift, driven by its growing concentration of pharma, technology, and BFSI employers with mature DEI mandates.
Delhi-NCR has declined from 21% to 17%, and Mumbai has softened from 14% to 11%, likely reflecting the financial sector’s broader pullback in diversity hiring. Metro cities continue to account for the majority of diversity hires across all categories, though tier-2 cities are gaining ground — particularly for women (28% of women-focused hires now originate outside metros) and PwD roles (22%).
Industries: IT Leads, Manufacturing Gains Ground
By industry, IT – Software & Services has extended its lead as the largest contributor to diversity hiring, growing from 23% to 25% of the mix, while Consulting & Analytics has risen from 12% to 14%.
Manufacturing and Automotive, historically resistant to DEI progress, have edged up from 3% to 4% — a modest share but a directionally meaningful one, as EV transition and smart factory investments open new entry points for women and underrepresented groups.
About the foundit Insights Tracker
The foundit Insights Tracker (fit) India (formerly the Monster Employment Index) is a monthly benchmark of online hiring activity across the nation. By analysing millions of job postings, fit provides timely, data-led intelligence on recruitment trends across industries, functional areas, locations, and experience levels, helping organisations and talent navigate an evolving labour market.
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