General staffing sees 5% q-o-q growth in Q2 FY26 on FMCG, e-commerce demand: ISF
The Indian Staffing Federation is the apex body representing more than 125 flexi-staffing companies and works to strengthen formal employment practices and social security coverage for temporary workers
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MUSTAFAH KK
The general staffing industry recorded a 5 per cent quarter-on-quarter (q-o-q) growth in the second quarter of FY2026, largely driven by strong hiring demand from sectors such as FMCG, e-commerce, retail, logistics and energy, according to the latest Employment Growth Report released by the Indian Staffing Federation (ISF).
Overall, the staffing industry posted a robust 5 per cent q-o-q growth during July–September 2025, while maintaining a year-on-year (y-o-y) growth rate of 5.8 per cent compared to the same period last year. In a statement, the ISF said the increase reflects sustained demand for a formal staffing workforce across multiple sectors of the economy.
In the general staffing segment, growth stood at 5 per cent q-o-q and 5.5 per cent y-o-y in Q2 FY26. Apart from consumer-facing industries, hiring in banking, financial services and insurance (BFSI) also contributed to employment growth, supported by digital transformation initiatives and compliance-driven recruitment.
The IT staffing segment delivered a stronger performance, registering a 16 per cent y-o-y growth and a 4.9 per cent q-o-q increase. ISF attributed this to rising global demand for artificial intelligence, cloud computing and digital services, as well as new hiring by Global Capability Centres (GCCs). The sequential recovery during the quarter was led by a rebound in IT and consulting services, particularly among tier-2 technology firms.
Commenting on the findings, ISF President Lohit Bhatia said the federation’s members added 92,000 formal temporary jobs over the past four quarters. “This demand momentum has been driven primarily by FMCG, e-commerce, logistics and energy sectors. Strategic GST 2.0 reforms and seasonal demand have further boosted the need for temporary workforce,” he said.
ISF Vice President Manmeet Singh noted that India’s IT sector has begun to show signs of recovery after a prolonged slowdown. “The 16 per cent year-on-year growth in Q2 FY26, the highest in three years, indicates that companies are investing in talent and preparing for future expansion,” he said.
The Indian Staffing Federation is the apex body representing more than 125 flexi-staffing companies and works to strengthen formal employment practices and social security coverage for temporary workers.
Published on December 17, 2025
