With hiring levels on the rise, compensation is expected to increase by 12-15% in metro cities and by 18-22% in emerging cities
India’s festive season this year is poised to create more than 2.16 lakh seasonal jobs, marking a 15-20% increase in gig and temporary employment compared to the same period last year, according to a report released on Wednesday.
The surge in hiring is being driven by key sectors including retail, e-commerce, banking, financial services and insurance (BFSI), logistics, hospitality, travel, and fast-moving consumer goods (FMCG). The rise in job opportunities reflects the booming demand ahead of the country’s major festive events such as Raksha Bandhan, Big Billion Days, Prime Day Sale, Dussehra, Diwali, and the wedding season.
Adecco India, a leading HR service provider, noted that companies are accelerating their recruitment processes to ensure operational readiness and meet the high demand expected during this festive period. “Hiring activity has gained significant momentum in anticipation of the upcoming events, and we are already seeing a sharp uptick in seasonal job creation,” the company said.
The report attributes this year’s hiring surge to several factors, including a boost in consumer sentiment, improved monsoon conditions that are driving rural demand, post-election economic optimism, and the aggressive seasonal promotions offered by businesses.
Metro cities such as Delhi-NCR, Mumbai, Chennai, Hyderabad, Bengaluru, Kolkata, and Pune are witnessing a 19% rise in hiring demand compared to last year. Meanwhile, tier-2 cities like Lucknow, Jaipur, Coimbatore, Nagpur, Bhubaneswar, Mysuru, and Varanasi are experiencing a staggering 42% increase in seasonal job demand. Emerging cities like Kanpur, Kochi, and Vijayawada are also becoming new hiring hubs.
With hiring levels on the rise, compensation is expected to increase by 12-15% in metro cities and by 18-22% in emerging cities. Notably, a growing number of women are participating in this hiring wave, with a 23% increase in female workforce participation compared to previous years, largely due to the appeal of flexible and short-term roles.
“This year’s festive season is seeing a sharper and more structured demand curve. We’ve proactively prepared to meet it well in advance,” said Deepesh Gupta, Director and Head of General Staffing at Adecco India. “Unlike in the past, when hiring was primarily volume-driven, employers today are focusing more on deployment speed, workforce readiness, and regional agility.”
In terms of sector-specific growth, logistics and delivery are expected to see a 30-35% rise in hiring as companies scale up operations for peak festive demand. The BFSI sector is also gearing up, with firms ramping up credit card sales and POS installations, particularly in tier-2 and tier-3 cities. The hospitality and travel sectors are projected to see a 20-25% increase in hiring, while e-commerce and retail are expected to continue leading, contributing to 35-40% of the overall seasonal job growth.
India’s Services Sector Surges
India’s services sector activity soared to a 10-month high in June, driven by strong domestic and export demand, according to the HSBC India Services PMI (Purchasing Managers’ Index) report released on Thursday. The seasonally adjusted PMI Business Activity Index rose from 58.8 in May to 60.4 in June, signaling robust growth in the services industry.
The PMI index, which tracks the performance of the services sector, remains well above the neutral mark of 50.0, indicating continued expansion. The report highlights that new orders grew at the fastest pace since August 2024, reflecting a surge in demand across both local and international markets. Notably, demand from Asian, Middle Eastern, and US markets provided a significant boost to the sector.
The positive momentum in the services sector translated into an increase in recruitment, as employment rose for the thirty-seventh consecutive month in June. Job growth continued at a pace above the long-term average, although it fell slightly short of the record levels observed in May.
The growth in the services sector has also led to a reduction in input cost inflation, which dropped to a ten-month low in June. Despite this easing, charge inflation remained above the trend average, signaling that businesses continue to pass on some of their costs to consumers.
The report also notes that business optimism for the future remains strong, with 18% of service providers expecting further output growth in the next 12 months. While this figure represents the lowest level of confidence since mid-2022, it still indicates that service providers are largely positive about the outlook.
The HSBC India Composite PMI, which combines services and manufacturing activity, also showed positive momentum, rising to 61.0 in June from 59.3 in May. This marked the fastest expansion in 14 months, in line with the strong performance of the services sector.
The growth in services, coupled with a solid manufacturing performance, points to a favorable economic outlook for India, with job creation and economic opportunities continuing to rise across multiple sectors.
