Large Enterprises Lead Hiring Confidence as Smaller Firms Stay Cautious: TeamLease Employment Outlook Report
According to the TeamLease Employment Outlook Report for H1 FY2026–27, hiring intent continues to remain strongest among large enterprises, while medium enterprises and start-ups/micro and small businesses (MSMBs) display a more cautious outlook. The findings are based on a survey of 1,268 businesses across 23 industries and 20 cities in India, conducted between November 2025 and January 2026.
Among Large Enterprises, 74% of employers expect to increase hiring, while 8% anticipate a reduction and 18% expect no change. The report attributes this confidence to production-linked incentive (PLI) schemes, infrastructure capex visibility, energy transition investments, and improved credit transmission, supported by strong balance sheets and sector alignment.
For Medium Enterprises, 57% of employers indicate hiring growth, 15% expect a reduction, and 28% foresee no change. The report notes that access to CGTMSE guarantees, Udyam-linked formalisation benefits, and priority-sector lending have provided liquidity support. However, working-capital discipline and receivables cycles continue to moderate aggressive hiring, making expansion dependent on demand visibility.
Within Start-ups, Micro and Small Businesses, 38% expect to increase hiring, while 28% anticipate a reduction and 34% expect no change. The report states that the mandate remains fragmented despite policy support through initiatives such as MUDRA financing, MSME cluster development, and digital credit access. Structural challenges, including margin pressure and cash-flow volatility, continue to constrain workforce expansion, with subsidies acting more as a stabiliser than an accelerator.
Overall, the report highlights that while fiscal incentives and MSME support frameworks are enabling business expansion, their employment impact remains size-sensitive. Larger enterprises are translating policy support into workforce growth more effectively, while smaller businesses continue to prioritise stability, making the hiring cycle distinctly differentiated by enterprise size rather than uniformly policy-driven.
