Gig jobs rise as permanent roles stay elusive

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

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

Festive peak, seasonal lull

In India, the festive season—typically from September to December—is considered the peak hiring period, as companies across industries push product sales amid gifting and the coinciding wedding season. This is followed by a lull, with recruitment picking up again in February and March, as companies stock up on air-conditioners, refrigerators, coolers, and beverages ahead of the April–June summer season.

Companies usually hire gig and temporary workers who can stay on through the summer months. Last year, hiring in the consumer, banking, and logistics sectors rose 15–20% in tier-2 and tier-3 cities. This year, however, could be a mixed bag, with online sales gaining momentum while store footfalls remain uneven.

Interestingly, the focus is once again on tier-2 and 3 cities to drive demand. “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,” said Sandeep Abhange, equity research analyst (consumer and staples) at LKP Securities. He added that urban demand remains relatively robust, with tier-2 and 3 cities likely to deliver mid- to high-single-digit growth, while tier-1 and 2 cities should see gradual improvement over the summer.

The analyst estimates a sequential recovery in same-store sales growth (SSSG) 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 grapple with high attrition—often around 25–30% per quarter—requiring the hiring of replacement staff.

Kartik Narayan, CEO of Apna.Co, is more optimistic about an uptick in temporary and gig hiring in the coming months. “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,” he said. 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 toggle between employers. “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,” said Madhav Krishna, founder and CEO of Vahan.ai, a blue-collar recruitment platform.

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 (IPL) will take place between March and May.

Weather remains one of the most crucial factors during this period, and unseasonal rains could dampen sales, as seen last year. “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,” said Balasubramanian Ananta Narayanan, CEO of staffing firm TeamLease.

TeamLease expects an uptick in demand for frontline sales roles—both on-ground salespeople and store promoters—as well as service technicians, who will be required to install new purchases of air-conditioners, coolers, and refrigerators, and to service existing ones.

A Bengaluru-based recruitment firm said its banking-sector clients’ plans to open new branches are muted. “Branches indicate more hiring in permanent and temporary workforce. Smaller towns will see some movement though,” said a recruiter who declined to be named.