India's Flexi-Staffing Employment Rises 2.6% in Q1 FY27: Report

India's flexi-staffing sector recorded a steady recovery in the first quarter of FY27, with net employment increasing 2.6 per cent quarter-on-quarter and 7.5 per cent year-on-year, according to a report released on Tuesday.

The Indian Staffing Federation (ISF) said employment demand during the April-June quarter was led by the manufacturing, technology and consumer-facing sectors.

ISF President Manmeet Singh said the latest figures highlighted the resilience of India's flexible workforce model despite broader changes in the macroeconomic environment.

According to Singh, around 57 to 61 per cent of new subscribers to the Employees' Provident Fund Organisation (EPFO) are between 18 and 25 years old, making flexi-staffing an important entry point for young people joining the organised workforce for the first time.

He said organised staffing was also contributing to workforce formalisation by providing young workers with access to statutory protections, social security, health coverage and structured skilling opportunities.

The sector's performance in the first quarter was supported by broader economic activity. Real GDP growth stood at 7.8 per cent despite geopolitical tensions in West Asia and higher crude oil prices.

Capital expenditure, infrastructure expansion and the commissioning of new plants generated demand for project-based and flexible manpower during the quarter.

The technology staffing segment also recorded growth, with ISF Vice President Farhan Azmi reporting a 2 per cent quarter-on-quarter increase.

Azmi attributed the performance to the continued expansion of global capability centres (GCCs) and increased investment in areas such as artificial intelligence, machine learning and digital services.

He said these trends were supporting demand for formal flexi-workforce talent in higher-skilled areas of the economy.

The staffing industry has also reported sustained demand from e-commerce, quick-commerce and third-party logistics warehousing following a strong festive season.

The industry body called for continued policy support and greater focus on formalisation and skills development to maintain the sector's momentum as India works towards broader employment and economic growth objectives.