Blue-collar jobs show revival signs in metros2 min read . Updated: 04 Aug 2020, 05:45 AM IST
- Businesses driving demand include education services, agriculture and e-commerce start-ups, and testing
- The top metros have seen an exodus of migrant workers following the imposition of lockdown beginning 25 March
Blue-collar jobs are gradually returning, with the top metros leading the uptick in hiring.
IT-enabled services (ITeS) companies are expected to hire security, cleaning and maintenance workers, emerging as the biggest employer of blue-collar workers in Bengaluru, while logistics will lead hiring in Delhi-National Capital Region, according to a survey by online marketplace OLX group. In Mumbai, ITeS and logistics will remain top employers, followed by the financial services sector.
Ninety percent of companies surveyed in Bengaluru confirmed their intent to increase the hiring of blue-collar and entry-level workers in the third quarter of 2020 against 86% in Mumbai and 76% in Delhi, according to the Employer Sentiment Survey by OLX People, an HR platform. The company surveyed around 200 companies across 14 cities during June.
The top metros have seen an exodus of migrant workers following the imposition of lockdown beginning 25 March. In Maharashtra, home to the largest migrant workforce in the country, around 1.15 million migrant workers had left by the end of May, while in Delhi, 60-70% of the labour force left for their homes.
Almost all companies in these segments expect a complete revival by December. As consumer demand revives beyond non-essential items, demand for labour, too, will pick up gradually, according to staffing solution companies.
“Most employment recovery, whatever little is happening, is likely to happen in Bengaluru, Delhi, Pune, Hyderabad, Chandigarh, Mumbai and Kolkata. A large chunk of the movement will happen in tier-I cities," Rituparna Chakraborty, co-founder and executive vice-president, Teamlease Services, told analysts.
Businesses driving demand include education services, agriculture and e-commerce start-ups, and testing. “We are expecting much deeper play in e-commerce for sure for obvious reasons. Healthcare and pharma, again, for obvious reasons," added Chakraborty, referring to businesses that have benefited from the pandemic.
“It is exciting to see that the job market is showcasing green shoots of recovery, especially as the economy gradually opens up and economic activity continues to gather pace. Strong growth indicators for recovery are visible not just for white-collar workers or the formal economy but also in the informal sector," said Tarun Sinha, head of OLX People (part of OLX India). “We are weeks away from what is otherwise India’s startup season. And as August and September come in, there are more and more clients who start to give orders in terms of hiring positions. We are now looking at about twice the growth in new hiring mandates (client requirement) in July over June, but this is still about 60% of pre-covid times," said Lohit Bhatia, president of Workforce Management, Quess Corp.
Bhatia added that while a lot more clients downsized compared to those who added employees during the past months, further downsizing is unlikely.
Clients are still watching the Central government and state regulations on further lockdowns before taking any strategic decisions on hiring people.