Employment in the flexi staffing industry grew 2.6 per cent sequentially in the April-June quarter of 2026, indicating a gradual recovery in hiring after a softer previous quarter, according to the latest quarterly report by the Indian Staffing Federation (ISF). Flexi staffing is the temporary hiring of employees by an organisation either for a fixed period or until the project is completed.
The formal flexi staffing workforce stood at 1.95 million in the first quarter of 2026-27, up 7.5 per cent from a year earlier, with 1.14 lakh formal jobs added over the past year, the report said.
Manufacturing and consumer-facing sectors were the main drivers of staffing demand, while banking hiring weakened.
Manufacturing was the largest volume driver, with production, manufacturing and engineering hiring rising 14 per cent in June. Demand was particularly strong for workers in auto components, electrical and electronics assembly, and food processing, according to the report.
“Manufacturing and consumer sectors are now the volume engine, and BFSI is cooling. General staffing growth this quarter came mainly from manufacturing and the consumer/retail/telecom verticals. BFSI faced regulatory headwinds on what can be outsourced, though NBFCs and fintechs still offer openings,” the report noted.
E-commerce, quick commerce, logistics and road transport also emerged among the stronger demand sectors in the first quarter, despite the period falling outside the usual festive-season hiring cycle, the report said.
Healthcare, pharma and life sciences were among the fastest-growing job functions, with hiring rising 22 per cent in June.
Demand was also emerging for AI-adjacent specialist roles such as large language model operations, prompt engineering and AI quality assurance, while cybersecurity and compliance hiring accelerated amid new regulatory requirements, the report said.
Within financial services, hiring shifted away from banks towards insurers, non-banking financial companies and fintech firms. Insurance hiring rose 16 per cent in June, while banking hiring fell 15 per cent in May. Among fresher roles, relationship manager hiring increased 75 per cent and loan officer hiring 62 per cent.
IT staffing grew 2 per cent sequentially and 7 per cent year-on-year in the quarter. However, the report pointed to a divergence within the sector. AI and machine learning roles grew 25 per cent year-on-year in June even as overall IT hiring fell 3 per cent.
Specialised staffing headcount increased 13 per cent year-on-year, with global capability centres accounting for 71 per cent of professional staffing headcount, according to the report.
Hiring by foreign multinationals in BPO and IT-enabled services rose 54 per cent in June, while BPO/ITES fresher hiring increased 28 per cent in May.
“GCCs now account for 45–67 per cent of its specialised staffing associates and revenue. GCC hiring has now held up for several consecutive quarters, so it is a structural trend rather than a cyclical one,” said the report.
The report was based on a quarterly survey of more than 120 ISF member staffing companies across 15 sectors, with inputs collected through primary email surveys over 60 days.
