The staffing industry in India has witnessed a significant surge in temporary workers, recording an 18% increase in the four quarters leading up to September 2024.
The staffing industry has also made a significant social impact by providing freshers and first-time job market entrants with their initial formal employment opportunities.
This transition from informal to formal employment offers social security, employment mobilization, and relevant skills development programs.
Staffing Industry: Growth Statistics and Sector-Specific Trends
According to a report by the Indian Staffing Federation (ISF), the industry added approximately 235,000 temporary workers by September 30, 2024.
This represents a 17.9% year-on-year increase.
The sectors driving this growth include fast-moving consumer goods (FMCG), e-commerce, manufacturing, healthcare, retail, logistics, banking, energy, and hospitality.
The IT staffing industry, in particular, saw a notable quarterly rise of 4.1% during the July-September period.
This increase is attributed to new demands from global capability centers (GCCs) and project ramp-ups in the services sector.
Other sectors such as ITeS, BFSI (banking, financial services, and insurance), and GCCs also contributed to the hiring of temporary workers.
Factors Contributing to Growth
Several factors have contributed to the rise in temporary staffing.
The shift towards hybrid staffing models, coupled with technological advancements, has emphasized the resilience and adaptability of sectors like e-commerce and tech startups.
Additionally, the ease of business, talent availability, and demand from various industries have fueled this growth.
The flexible workforce now stands at 1.81 million, employed by around 130 ISF members.
The upsurge in new employment growth, from 5.1% in Q1 of FY25 to 5.9% in Q2 of FY25, indicates a positive rise in job opportunities.
Experts predict that this hiring surge will continue in the coming quarters across various sectors.
Lohit Bhatia, President of ISF, stated that the market witnessed a significant improvement across most sectors, underscoring the industry’s vital role in driving employment and economic stability in India.
He also highlighted the scarcity of skilled workforce across some sectors due to talent shortages and labor mobility.
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