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India Inc to create 7 million blue-collar jobs by the top of this fiscal

IBEF:  August 26, 2021

According to a poll, India Inc is likely to generate 7 million blue-collar jobs by the end of this fiscal year as governmental restrictions are eased, business activity resumes, consumption rises, and seasonal shopping increases need for people in some industries.

According to a pan-India survey conducted by Betterplace, the leading human capital management platform for blue-collar workers, demand for blue-collar workers has surpassed pre-Covid levels for the first time in 15 months, as demand restoration and a pickup in financial activity following the vaccine rollout is prompting firms in a variety of sectors to strengthen manpower.

The need for blue-collar workers is up 4% from 2019 and up 37% from the troughs in 2020, according to the Blue Collar Jobs Report, which is based on data from over 1,600 companies and shared entirely with ET.

According to Mr. Pravin Agarwala, cofounder and CEO of Betterplace, “as the economy emerges from constraints and companies resume activity, there is a heightened demand for blue-collar workers.”

The demand forecast, which is based on firms' precise hiring needs, includes a mix of new job creation and job restoration in industries like logistics, ecommerce, fast-moving consumer goods (FMCG), retail, apparel, healthcare, data expertise and IT-enabled companies, and banking, monetary companies, and insurance coverage (BFSI).

The data does not include the development sector or a large component of the manufacturing industry.

“Companies are considerably more prepared after the second wave (of Covid-19) than they were after the first, and the economy is mostly back on track,” said Mr. Agarwala. “Even if there is a third wave, most firms are confident in their ability to cope with the situation better. Employers are encouraged to increase recruiting as a result of this, as well as an increase in consumer demand and a nationwide vaccination rollout.”

Maharashtra, Telangana, Tamil Nadu, and Karnataka are expected to generate half of the new jobs. Maharashtra, anchored by Mumbai, is at the top of the list, accounting for 17% of total demand.

Supply executives, drivers, housekeepers, retail sales executives, customer service executives, stitching machine operators, safety and facility administration employees, medical gross sales representatives, and warehouse workers are among the positions in high demand.

Mr. Santrupt Misra, group director at Carbon Black and director, group human assets, at Aditya Birla Group, stated, “The sectors where individuals were holding back investments would see investments flowing in over the next few of months.”

“Also, the government's variety of policy initiatives to jumpstart the economy will result in the creation of additional jobs,” he said. “Our primary focus will be on hiring in expanding businesses while also emphasizing upskilling and increasing productivity.”

Ceat, a subsidiary of the RPG Group, is increasing staff on the ground to support its expansion goals. “We hire people mostly in Chennai and Nagpur. This has a lot to do with growth. Over the next 3-4 months, we expect to employ 200-300 associates,” said Mr. Milind Apte, Ceat's top HR officer.

Economists and labour market experts agree that the government's attempts to boost economic activity and demand would necessitate the hiring of additional workers, however the rate of immunisation remains a critical factor in maintaining momentum.

“The job market for blue-collar workers is clearly improving. Even if incremental employment growth or new job creation is small, the fact that firms are restoring lost jobs is a sign of resurgence,” said Mr. Madan Sabnavis, Care Ratings' chief economist.

“Fast-growing industries like ecommerce, logistics, and technology will account for the majority of new job creation, while other service sectors are recovering lost employment with an increase in demand,” he explained.

Data also shows a growing shift in employment patterns, with the gig workforce expected to grow to 175% by the end of the fiscal year. In the long run, the gig economy is expected to support as many as 90 million jobs.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.