India’s flexi staffing surges 2.6 pc in Q1 FY27: Report

New Delhi: Flexi‑staffing net employment saw steady recovery and grew 2.6 per cent quarter‑on‑quarter in Q1 FY26 and 7.5 per cent year‑on‑year, even as the trend points to a gradual slowdown in formal employment, a report said on Tuesday.

The report from Indian Staffing Federation (ISF) said the April–June quarter saw employment demand led by manufacturing, technology and consumer‑facing sectors.

"The April to June quarter underscores the resilience of India's flexible workforce model amid broader macroeconomic shifts," said Manmeet Singh, President of ISF.

Around 57 per cent-61 per cent of new EPFO subscribers are aged 18–25, which makes flexi-staffing the primary bridge for young first-time job seekers entering the organised economy, he said.

"Even amid global market headwinds, organised staffing accelerates India's workforce formalisation by ensuring young talent gets direct access to statutory protections, social security, health coverage, and structured skilling," Singh added.

Macroeconomic expansion provided a strong demand floor for flexi-staffing in Q1, with Real GDP growing at 7.8 per cent despite geopolitical tension in West Asia and rising crude oil prices. Capital investment, infrastructure ramp-ups, and plant commissioning generated immediate demand for project-based flexible manpower.

Farhan Azmi, Vice President of ISF said that the IT staffing segment delivered robust performance, achieving a strong 2 per cent QoQ increase.

“Continued expansion of GCCs and significant investment in areas like AI/ML, and digital services are the primary engines for this growth, ensuring the formal flexi workforce remains competitive in high-skill areas," Azmi added.

In another recent report, the flexi staffing industry body had highlighted sustained demand from e‑commerce, quick‑commerce and 3PL warehousing following a strong festive season.

The industry body urged continued policy and industry focus on formalisation and skills development to sustain momentum as India pursues broader employment and economic targets.

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