Flexi staffing hiring sees marginal dip for second consecutive quarter, workforce touches 1.91 million: ISF

Despite the slowdown, the sector added 69,000 new jobs over the last four quarters, largely driven by festive demand in sectors such as e-commerce, logistics, FMCG and healthcare, as per the report

Hiring in India’s flexi-staffing sector witnessed a marginal dip for the second consecutive quarter, even as the industry continued to expand overall, according to the latest employment trends report released by the Indian Staffing Federation (ISF).

The Q3 FY26 (October–December 2025) Flexi Staffing Employment Trends Report shows the industry grew 4.4 per cent year-on-year compared with Q3 FY25, taking the total number of formal flexi workers to 1.91 million. However, hiring slowed on a quarterly basis with a 0.5 per cent decline compared with Q2 FY26, reflecting a cooling in recruitment momentum amid regulatory adjustments and cautious market sentiment.

Despite the slowdown, the sector added 69,000 new jobs over the last four quarters, largely driven by festive demand in sectors such as e-commerce, logistics, FMCG and healthcare, as per the report.

Resilient model

Commenting on the report, Lohit Bhatia said the sector continues to play a crucial role in formalising India’s workforce. “The 4.4 per cent growth in flexi-staffing underscores a resilient model that remains the primary engine for India’s formalisation, particularly for the 59 per cent of new workers aged 18–25 entering the formal fold. While the implementation of new labour codes created a strategic pause in Q3FY26 as costs were recalibrated, the sector’s role in bridging the informal-to-formal gap remains indispensable. We anticipate a robust return to hiring-led growth in Q4 and Q1FY27 as the market fully integrates these regulatory shifts,” Bhatia said.

The report noted strong year-on-year growth across segments, led by a 16.1 per cent surge in IT staffing, driven largely by Global Capability Centers (GCCs) and rising demand for specialised technology roles. Meanwhile, general staffing grew 4 per cent year-on-year, supported by rural recovery in the FMCG sector.

However, general staffing recorded a 0.6 percent quarter-on-quarter decline, mirroring the broader slowdown in hiring sentiment during the quarter. ISF member companies collectively added 62,000 jobs over the past year, the report noted.

Published on March 10, 2026