India's white-collar job market witnessed a slowdown in May 2026, with hiring activity declining 4 per cent year-on-year, even as organisations significantly increased their focus on diversity and inclusion initiatives, according to a report released on Wednesday.
The latest foundit Insights Tracker (fit) report showed that overall white-collar recruitment also fell 6 per cent on a month-on-month basis, highlighting continued caution among employers amid changing market dynamics and economic uncertainties. Despite the moderation in overall hiring, diversity-focused recruitment emerged as a bright spot, registering a robust 21 per cent increase during the same period.
The report attributed the decline in overall hiring to reduced recruitment activity across several key sectors. Import and export recorded the sharpest drop at 23 per cent, followed by logistics and transportation at 18 per cent. Retail and the banking, financial services and insurance (BFSI) sectors also reported an 8 per cent decline each in year-on-year hiring activity. In contrast, several industries posted strong growth in recruitment. Travel and tourism led the way with a 26 per cent increase in hiring, while automotive registered a 12 per cent rise. Healthcare and pharmaceuticals, along with real estate, each reported an 11 per cent growth in hiring compared to the previous year.
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The foundit Insights Tracker is based on an analysis of 7,39,188 online job postings and serves as a comprehensive monthly assessment of hiring trends across sectors. The study is conducted by foundit.in, one of India's leading job search and talent platforms.
According to the report, diversity hiring continued to record double-digit growth in May, underscoring employers' commitment to building inclusive workplaces even as broader recruitment activity remained measured and selective.
Women accounted for 56 per cent of all diversity-focused hiring during the month. Representation of Persons with Disabilities (PwD) also showed remarkable progress, tripling over the last two years to reach 12 per cent of total diversity hiring. Additionally, diversity and inclusion recruitment encompassing LGBTQIA+ and neurodiverse talent expanded significantly, accounting for nearly one-third of all diversity-focused appointments.
Commenting on the findings, foundit Chief Executive Officer Tarun Sinha said organisations are increasingly prioritising talent segments that contribute to long-term business sustainability and resilience. He noted that the continued growth in diversity hiring reflects a fundamental shift in corporate hiring strategies, where inclusion is being viewed less as a compliance obligation and more as a critical business capability.
According to Sinha, the growing presence of diverse talent in leadership positions, technology roles and traditionally underrepresented groups such as PwDs points to a more mature and integrated approach towards building future-ready organisations.
The report further highlighted that the IT-Software and Services sector accounted for the largest share of diversity hiring at 25 per cent. Within the sector, LGBTQIA+ and neurodiverse professionals represented as much as 40 per cent of total diversity recruitment.
The BFSI sector recorded the highest participation of women in diversity hiring, with women accounting for 62 per cent of such recruitments. It was followed by the FMCG sector at 61 per cent and healthcare at 60 per cent.
PwD hiring was most prominent in the ITES/BPO sector, where it accounted for 18 per cent of diversity recruitment, followed by manufacturing and automotive at 16 per cent. Meanwhile, the consulting and analytics sector expanded its share of diversity hiring to 14 per cent, reflecting broader efforts across industries to foster more inclusive workforces.
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