DBT Bureau
Pune, 22 August 2025
India’s festive economy has traditionally been a major driver of consumer spending, and 2025 is marking a structural transformation in how seasonal demand is shaping employment models. The festival season, starting earlier this year, is expected to generate up to 2 lakh jobs across key sectors like retail, e-commerce, logistics, and consumer services.
Hiring during the festive period is up by approximately 20–25% compared to last year. Sectors such as quick commerce and third-party logistics are driving the uptick, supported by significant investments in supply chain and last-mile delivery infrastructure. Of the projected new jobs, 70% are expected to be gig roles, while 30% are permanent, suggesting that companies are adopting a blended workforce model to balance flexibility and scale. But unlike previous years, this isn’t just a seasonal spike; it reflects a broader workforce transformation across the gig economy.
Several large Q-commerce and e-commerce players are projected to retain 26% of this expanded workforce beyond the festive window, pointing to a structural shift rather than a seasonal spike. In contrast to previous years—when 70-75% of gig roles were typically phased out post-festivities—workforce demand is now expected to stabilize at higher levels, reinforcing the position of gig talent as a strategic asset in India’s evolving employment landscape.
Like last year, this year is also expected to witness a significant surge in hiring across Tier 2 and Tier 3 cities, which are projected to strengthen their role as active growth centres. Locations such as Bhubaneswar, Kochi, Indore, Surat, and Nagpur are anticipated to see a 30–40% increase in gig hiring compared to the same period last year. With these cities emerging as micro-fulfilment hubs for retail and e-commerce companies, Tier 2 cities accounted for 47% (YoY) of total gig hiring during the last festive season—a figure expected to rise to 50% in FY26.
Another defining shift projected this year is greater gender diversity in festive workforce participation. The gig economy—particularly in sectors like customer experience, delivery, grooming, and food services—is expected to see a notable rise in female workforce involvement. Compared to FY25, this season is projected to witness a 30-35% increase in women taking up short-term or gig-based roles. Flexible working hours, digital onboarding, and hyperlocal job availability are anticipated to be key enablers. Last year, the male-to-female hiring ratio in gig roles stood at 72 : 28, while early projections for this year indicate a shift toward greater parity in urban and semi-urban clusters.
Commenting on this trend Sachin Alug, CEO, NLB Services said, “Over 35% of businesses are now rethinking festive hiring as a component of their long-term talent strategy. We’re seeing companies invest in pre-festive skilling initiatives, revisit their workforce diversity goals, and increasingly view seasonal demand as a testing ground for agile workforce models. While metros like Bengaluru, Mumbai, and Delhi continue to lead in demand by volume, the real growth momentum is clearly shifting to Tier 2 and Tier 3 cities—where talent supply is strong, operational costs are lower, and attrition rates remain minimal.”
As this momentum continues, the priority must shift toward building continuity- investing in tech-led skilling, extending workforce protections to gig roles, and ensuring that festive participation evolves into long-term workforce inclusion. The celebration may be seasonal, but its impact on employment is now year-round.
