Gig jobs rise as permanent roles stay elusive

While instructions are coming from e-commerce and logistics players, banking, consumer durables and electronics companies with physical stores are largely limiting hiring to replacement staff.

Aditya Narayan Mishra, managing director and chief executive officer (CEO) of talent solutions firm CIEL HR, said, “The environment is gloomy. There has been no change in the budget that would lead to more money in the hands of consumers, which directly affects consumption patterns. However, online platforms are expected to perform marginally better compared to last year.”

Festive peak, seasonal lull

In India, the festive season (usually September to December) is considered the peak hiring period as companies across various industries increase product sales as it coincides with the gift-giving and wedding season. A recession follows; Hiring increases again in February and March as companies stock up on air conditioners, refrigerators, coolers and beverages ahead of the April-June summer season.

Companies often hire temps and temps who can stay during the summer months. Last year, hiring in the consumer, banking and logistics sectors increased by 15-20% in tier 2 and 3 cities. But this year could be a mixed bag, with online sales gaining momentum and store footfall remaining uneven.

Interestingly, the focus is once again on tier 2 and tier 3 cities to drive demand. “Footfall has shown some recovery, largely driven by tier 3 and 4 cities, while tier 1 and 2 markets are still in recovery mode,” said Sandeep Abhange, equity research analyst (consumer and staples) at LKP Securities. He added that urban demand remains relatively strong, with tier 2 and 3 cities likely to deliver mid-to-high single digit growth, while tier 1 and 2 cities should see a gradual improvement over the summer.

The analyst predicts a sequential recovery in same-store sales growth (SSSG) from the start of this quarter, but annual growth is likely to remain “subdued.” The double-digit growth seen in FY23 and FY20 is “unlikely to repeat,” he said.

Impact of labor law

Demand for recruiting firms typically picks up starting in February, as client companies shift employees between states and grapple with high attrition (often around 25-30% every three months) that requires the hiring of replacement staff.

Kartik Narayan, CEO of Apna.Co, is more optimistic that there will be a surge in temporary and casual hiring in the coming months. “With the arrival of new labor laws, I do not think private investment will significantly increase permanent jobs in the near term. Consumption has not increased enough for this. Over the next six months, we will probably see more contract hiring rather than growth in permanent positions,” he said. Apna Group is an AI-driven recruitment and professional networking platform based in Bengaluru.

In November, the government published four new labor laws, combining 29 laws and extending basic social security and minimum wage guarantees across the work environment.

Gig hiring increase

A temporary worker is typically assigned to a client’s facility for at least six months, while a temp worker may work only a few hours for one platform or even switch between employers. Madhav Krishna, founder and CEO of blue-collar recruitment platform Vahan.ai, said, “We expect a 10-20% increase in workforce hiring during the summer season compared to last year. Flash trading firms have already started hiring and sports events like IPL and FIFA World Cup will boost sales.”

Emailed queries to Swiggy, Zepto, Zomato, Amazon and BigBasket remained unanswered.

While the 2026 FIFA World Cup is scheduled to be held in June and July, the Indian Premier League (IPL) will take place between March and May.

Weather remains one of the most important factors during this period and unseasonal rains, as seen last year, can negatively impact sales. “Summer this year is expected to be hotter, similar to 2024. The 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, growth in annual sales is expected, which will increase the demand for manpower,” said Balasubramanian Ananta Narayanan, CEO of TeamLease.

TeamLease expects an increase in demand for front-line sales roles, both field salespeople and store promoters, as well as service technicians who will be required to install newly purchased air conditioners, coolers and refrigerators and maintain existing ones.

A Bengaluru-based recruitment firm said its banking sector clients’ plans to open new branches have been cancelled. “Branches are showing more hiring in the permanent and temporary workforce. But smaller towns will see some movement,” said a recruiter who declined to be named.