Mixed Summer for Hiring: Gig Jobs Rise as Permanent Roles Stay Elusive
Recruitment companies are preparing for a subdued hiring season during the summer months, which traditionally mark India's second-largest hiring period after the festive season. While mandates are flowing in from e-commerce and logistics players, sectors like banking, consumer durables, and electronics with physical stores are largely restricting hiring to replacement roles only.
Festive Peak and Seasonal Lull
In India, the festive season from September to December is considered the peak hiring period, as companies across industries boost product sales amid gifting and wedding seasons. This is followed by a lull, with recruitment typically picking up again in February and March as companies stock up on summer essentials like air-conditioners, refrigerators, coolers, and beverages ahead of the April–June summer season.
Companies usually hire gig and temporary workers to cover the summer months. Last year, hiring in consumer, banking, and logistics sectors rose 15–20% in tier-2 and tier-3 cities. This year, however, presents a mixed picture, with online sales gaining traction while store footfalls remain uneven.
Focus on Tier-2 and Tier-3 Cities
Interestingly, the focus is once again on tier-2 and tier-3 cities to drive demand. Sandeep Abhange, equity research analyst at LKP Securities, noted that footfall has shown some improvement, largely driven by tier-3 and tier-4 cities, while tier-1 and tier-2 markets are still in recovery mode. He added that urban demand remains relatively robust, with tier-2 and tier-3 cities likely to deliver mid- to high-single-digit growth, while tier-1 and tier-2 cities should see gradual improvement over the summer.
The analyst estimates a sequential recovery in same-store sales growth beginning this quarter, though year-on-year growth is likely to remain subdued. He said the double-digit growth seen in FY23 and FY24 is unlikely to repeat.
Labour Code Impact
For recruitment firms, demand typically picks up from February onwards as client companies relocate employees across states and deal with high attrition rates—often around 25–30% per quarter—requiring replacement hires. Kartik Narayan, CEO of Apna.Co, expressed optimism about an uptick in temporary and gig hiring in the coming months.
He stated, "With the new labour codes coming in, I don’t think private investment will significantly increase permanent jobs in the near term. Consumption hasn’t picked up enough for that. Over the next six months, we are likely to see more contractual hiring rather than growth in permanent roles." Apna Group is a Bengaluru-based, AI-driven recruitment and professional networking platform.
In November, the government notified four new labour codes consolidating 29 laws and expanding basic social security and minimum wage guarantees across the labour landscape.
Gig Hiring Boost
A temporary worker is typically deployed at a client site for at least six months, while a gig worker may work for a platform for just a few hours and even switch between employers. Madhav Krishna, founder and CEO of Vahan.ai, a blue-collar recruitment platform, said, "We expect a 10–20% jump in gig workforce hiring during the summer period compared to last year. Quick-commerce firms have already started recruitment, and sporting events such as the IPL and the FIFA World Cup will drive sales."
Queries emailed to Swiggy, Zepto, Zomato, Amazon, and BigBasket went unanswered. The 2026 FIFA World Cup is scheduled for June and July, while the Indian Premier League will take place between March and May.
Weather and Demand Factors
Weather remains a crucial factor during this period, and unseasonal rains could dampen sales, as seen last year. Balasubramanian Ananta Narayanan, CEO of staffing firm TeamLease, noted, "This year, summer is expected to be hotter, similar to 2024. Demand for consumer product categories such as soft drinks, beverages, air conditioners, and refrigerators is driven by summer heat. These are not just need-based purchases but also impulse-driven. As a result, year-on-year sales growth is expected, which will increase demand for manpower."
TeamLease anticipates an uptick in demand for frontline sales roles—both on-ground salespeople and store promoters—as well as service technicians needed to install and service new purchases of air-conditioners, coolers, and refrigerators.
Banking Sector Muted
A Bengaluru-based recruitment firm reported that banking-sector clients' plans to open new branches are muted. A recruiter who declined to be named said, "Branches indicate more hiring in permanent and temporary workforce. Smaller towns will see some movement though."
Overall, the summer hiring landscape in India is characterized by a rise in gig and temporary opportunities, particularly in e-commerce and logistics, while permanent roles in traditional sectors remain limited, reflecting broader economic trends and the impact of new labour regulations.
