Future of blue-collar jobs in India.

Our world of work is transforming - from shifting industry dynamics, economic uncertainty, social unrest, and changing employee expectations; it’s time to plan for what the future holds for your talent ecosystem. The assumption is that the worst of Covid-19 is behind us, barring a predicted downside risk with another recurring wave on the horizon. The staffing industry is helping organizations rearchitect their talent roadmap. The current challenges organizations are facing are skill shortages, supply chain disruption, wage inflation, and significant socio-economic disturbances.

The organized Indian staffing business grew by 3.6% in the fiscal year 2020-21 and continues to grow at a rapid pace. At the same time, the informal sector, which is a big chunk of the labour economy in India witnessed unemployment issues due to a lack of resources and structure. Interestingly, organized staffing growth was augmented by some positive tailwinds –

Youth employability in temporary staffing:

saw an uptick with an estimated 4% of fresh graduates opting for temporary staffing, and a gradual spike in qualified personnel with 21% more Flexi employees with higher education and 11% more with better skills in 2021 compared to the previous year. Almost 70% of temp worker profiles were graduates and above, owing to the rising need for skillsets to complement industry demands primarily in IT/ITES, BFSI, healthcare, consulting, and the Retail / E-commerce sectors to some extent.

Increase in women’s participation in temporary employment:

Another positive occurrence was an increase in women's workforce participation in temp staffing that increased by 6% last year, while men's participation saw a slight dip of 4%, owing to the new work arrangement allowing the majority of women to come back to work while also exploring a second career.

Demand for the blue-collared jobs:

The talent demand and supply are at the core of economic activity and sustainable growth. Globally, temporary staffing constitutes 55% of commercial (industrial and office/clerical jobs) and professional (made up of higher-skilled professional occupations) 45%. However, in recent years the blue-collar workforce is the most prevalent segment and a dominant revenue generator. As normal business activity resumes, consumer demand and consumption rise, and the segue to seasonal shopping gets closer there is an increase in demand for roles xx. From delivering food and groceries to helping with home appliances, maintenance, drivers, carpentry work, beauticians, and security personnel - the segment is growing exponentially, mostly driven by rapid urbanization and an increase in consumer demand.

Interstate talent mobilization:

The rules of the game have changed. A vast majority of blue-collar workers come from Tier 3 cities, towns and villages, migrating to Tier 1 and Tier 2 cities in search of better jobs. Due to the rising wages in the domestic market, ample opportunities to tap, and the uncertainty faced during the pandemic, overseas markets are no longer as attractive for young immigrants from the feeder states of Bihar, West Bengal, UP, MP, Odisha, and Chhattisgarh. These blue-collar workers form the backbone of several sectors and their contributions are substantial in the gig economy, logistics and e-commerce, infrastructure development, food processing, manufacturing, textiles, security forces, and domestic services sector.

Digital literacy:

While on one side the pandemic disrupted normal life, on the other hand, it opened the doors for the staffing industry to adopt a more technology-driven infrastructure. Remote hiring and working opportunities offered a means to sustain operations for companies amidst the lockdown. Online training and virtual platforms became customary. Even grey and blue-collared workers learned to adapt to the new normal with technology adoption and enhancing their digital literacy. While companies were improving their maturity the Government and Academia also followed suit. Hence digital literacy is no more an option but an absolute necessity. These transformations happened across all levels - age, economic strata, supply chain - local or regional.

Higher engagement levels:

Two years into the pandemic, the men and women who kept the engine running are being viewed with renewed respect and are bracketed as 'essential workers'. In the current scenario, blue-collar job prospects are plentiful and offer jobs of dignity, decent wages, social security benefits, and positive sentiment to this section of society. This has resulted in higher engagement levels. However, it also calls for action to ensure they are supported with well-being initiatives both mental and physical along with the relevant safety requirements to ensure that they can work in a location that is safe and inclusive.

Looking ahead, the Indian staffing industry will likely experience a steady macroeconomic environment for the remainder of this year. Access to resources and technology is more than ever before and this will allow more collaboration across regional and national boundaries. India is well-positioned as a future-ready player in the global market. Start-ups and small businesses that are responsible for hiring a vast chunk of corporate India’s workforce are reaping the benefits of blue-collared workforce. The employee sentiment shows that a vast majority are hopeful about the future of the staffing industry. In this age of choice and consequence, employers are now keen on diving into the resources of a vast talent pool in India.