Over 91,000 new formal jobs created; IT flexi staffing records double-digit growth despite macroeconomic headwinds
Steady Growth Amid Economic Challenges
India’s flexi staffing industry expanded 6.1% year-on-year (YoY) in FY25, supported by strong performance in the IT staffing segment. Despite global economic headwinds and hiring slowdowns in consumer-driven sectors, the industry demonstrated resilience, according to the latest Flexi Staffing Industry Employment Growth Report (Q1 FY2026) released by the Indian Staffing Federation (ISF).
Quarterly Performance Overview
The report highlighted a 1.5% quarter-on-quarter (QoQ) growth in overall flexi staffing during Q1 FY26 (April–June 2025), with over 91,000 new formal flexi jobs created during FY25.
The general staffing segment (excluding IT) grew modestly by 1.4% QoQ, reflecting consolidation and delayed recruitment decisions amid market uncertainty.
The general staffing segment (excluding IT) grew modestly by 1.4% QoQ, reflecting consolidation and delayed recruitment decisions amid market uncertainty.
IT Staffing Leads the Way
In contrast, the IT flexi staffing segment showed remarkable strength, registering a 5.5% QoQ and 12.3% YoY increase. This growth was fueled by rising demand from Global Capability Centers (GCCs), digital transformation initiatives, and investments in AI and cloud technologies.
- “The April–June 2025 quarter indicates the changing face of formal employment growth, evidenced by a deceleration in flexi employment growth to 6.1% YoY — the slowest Q1 pace since the 2020 pandemic,” said Lohit Bhatia, President, Indian Staffing Federation.
“This moderation is primarily due to challenging economic conditions and reduced consumer spending.”
Industry Leaders on the Trend
Manmeet Singh, Vice-President of ISF, emphasized the sector’s resilience:
- “The IT staffing segment delivered robust performance, achieving a 5.5% QoQ increase. Its 12.3% YoY growth highlights the non-cyclical nature of digital transformation. The expansion of GCCs and investments in AI, cloud, and digital services continue to drive this momentum.”
Suchita Dutta, Executive Director of ISF, added:
- “Despite a challenging macroeconomic environment, the staffing industry maintained positive growth quarter on quarter. ISF members collectively added 91,500 new formal positions over the last year, taking the total formal flexi workforce to 1.83 million by the end of Q1 FY26.”
Flexi Staffing: A Pillar of Formal Employment
The ISF noted that India’s flexi staffing industry continues to be a key contributor to formal job creation, even amidst global uncertainty and domestic market shifts. The sector’s adaptability and role in supporting workforce formalization remain vital to India’s employment landscape.
About the Indian Staffing Federation (ISF)
The Indian Staffing Federation (ISF) represents the staffing and workforce solutions industry in India. It plays a pivotal role in shaping policies, driving employment formalization, and supporting India’s transition toward an organized labor market.
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