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India flexi-staffing grows 2.6% in Q1 as factories, tech hire more

India’s flexi-staffing workforce grew 2.6 per cent in the April-June quarter. The total formal flexible workforce reached 1.95 million, the Indian Staffing Federation said in its latest quarterly report.

Net employment rose 7.5 per cent from a year earlier. About 1.14 lakh formal jobs were added in the past twelve months. The recovery followed a softer previous quarter.

Manufacturing was the biggest driver of growth. Manufacturing hiring rose 14 per cent in June. Electrical equipment rose 34 per cent, motor vehicles 17.5 per cent and food products 10.8 per cent, the report said.

Technology and consumer-facing sectors also added jobs. E-commerce, logistics and healthcare hiring grew strongly, while banking hiring cooled due to regulatory headwinds on outsourcing.

Real GDP grew 7.8 per cent in the quarter despite high oil prices. The ISF said capital spending, infrastructure work and new plant commissioning created fresh demand for project-based workers. Demand is also rising for AI-related roles such as prompt engineering and model operations, the report said.

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