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Industry insights & trends for Blue Collar workforce.
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The Risk Ahead
India is projected to become the world’s 3rd largest economy by 2027 [1].
The economy of any country is vastly dependent on the contribution of the Blue-collar workers [2].
India is witnessing a 7% growth in Blue-collar job vacancies [3].
Around 300 Million of the total workforce in India are blue-collar workers [4].
Roughly 80% of jobs in India are Blue-collar jobs [5].
Key economic sectors are experiencing a 30% demand-supply gap for Blue-collar workers [6].
India to fill a shortage of 150 Million skilled workers [7].
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Quarterly - 01 (2024)
Industry insights & trends for Blue Collar workforce.
Market Trends
- Hiring intent for non-white collar jobs was up 10% YoY in Q1FY24.
- According to a report by McKinsey & Company, India is expected to create 90 million new jobs by 2030. Of these, 70% are expected to be blue-collar jobs.
- There has been an increase in the migration of blue-collar workers from India to the Gulf Cooperation Council (GCC) nations in 2023.
- Soon, Korea signed a pact with India to source skilled manpower, and open doors for blue-collar workers.
- Germany is looking to source workers from India to address skills shortages.
A survey reported by:
A survey reported by NEWS18 has revealed that blue-collar jobs will grow by 12% in2023 as compared to 2022.
Annual Blue-Collar Job market index highlights 50% Growth in Hiring trends from 2022 to 2023
Blue-collar job vacancies grew 7% in March to 57,11,154.
Blue coller worker in India increased from 232 million in 2017-18 to 243 million in 2021-22 indicating growth rate of 4.7% per year.
Apple became the largest blue-collar Job Creator in India’s electronics Industry with 1 lakh new Jobs.
Insights and Observations
- Increasing demand for blue-collar workers in India.
- Enough skilled blue-collar workers are not available in the market.
- Technology may not directly increase wages, but it can help workers be more competitive and access new work opportunities.
- This is particularly important for women, who are looking for new opportunities to contribute to their family income, with
signs of a looming recession. - Most blue-collar jobs are going to freshers with tech skills.
- As the Indian economy becomes more complex and sophisticated, there is a growing demand for skilled blue-collar workers.
- This is particularly true in sectors such as manufacturing, construction, and IT. Therefore, available blue-collar workers need
to be upskilled to become job-ready. - Wages for blue-collar workers should be at par in comparison to other countries for preventing migration of blue-collar
workers. - Participation of women as blue-collar worker should be increased across various sectors.
Increasing demand of blue-collar workers in India
The blue-collar workforce in India is an important part of the economy, comprising more than 80% of the
total workforce. These workers are essential for the functioning of several sectors, including manufacturing,
construction, transport and logistics. However, the current situation of blue-collar jobs in India is
characterized by a complex combination of factors, including
- Increasing demand: The Indian economy, according to IMF estimates, will emerge as the world’s third largest economy by 2027°This growth is fueling the demand for skilled blue-collar workers in different sectors.
- E-commerce boom: As per a report by Statista on the Indian E-commerce Market expected to reach $200 billion by 2027 from $22 billion in 2018° This growth is creating new opportunities for blue-collar workers in the logistics sector.
- Skills shortages: India presents a paradox of skill shortages despite a situation of labor surplus, which threatens the growth story. There is a need for 33 million skilled workers in building and construction and 18 million in transportation and logistics.
- Technological advances: According to a World Economic Forum report, automation would certainly provide
millions of new job possibilities in the future. However, even in blue-collar jobs, professionals will be required
to have a working grasp of novel technology such as Al, ML, and data analytics.
Increasing demand of blue-collar workers in India
- Due to an acute shortage of skilled labour in the frontline or blue-collar workforce, the companies across
different sectors are hiring more number of apprentices to make them job ready? - According to a recent report by the World Economic Forum, India needs to skill or upskill over 400 million
workers by 2030 to meet the demands of the changing economy. The report also highlights that the
demand for skilled blue-collar workers is expected to grow by 25% in India over the next decade. - According to Harsha Goenka, RPG Group Chairman, the key issues that are affecting his business are:
shortage of skilled construction workers, truck drivers, and plantation workers. - There has been a 50% increase in the migration of blue-collar workers from India to the Gulf Cooperation
Council (GCC) nations in the first seven months of 2023, according to a study conducted by Huntr, a United
Arab Emirates-based marketplace connecting migrant workers with enterprises. - Deloitte’s Blue Collar Work force Trends Report 2023 shows that the current female blue collar work force
participation is at 8 per cent (1in 12), arise from <2 per cent a couple of decades earlier.
Government of India initiatives to counter the skill shortage
- Atmanirbhar Bharat Rojgar Yojana (ABRY) to incentivize employers for creation of new employment along with social
security benefits and restoration of loss of employment during Covid-19 pandemic. - Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) to incentivise employers for creation of new employment.
- National Career Service (NCS) Project for transformation of the National Employment Service to provide a variety of
career related services like job matching, career counselling, vocational guidance, information on skill development
courses, apprenticeship, internships etc. - Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is a Skill Certification scheme with the objective of enabling Indian youth to take up industry relevant skill training that will help them in securing a better livelihood.
- Production-Linked Incentive (PLI) Scheme across 14 key sectors, to create national manufacturing champions and to create 60 lakhs new jobs.
- The National Industrial Corridor Development Programme is India’s most ambitious infrastructure programme aiming to develop futuristic industrial cities along with creating employment opportunities and socio-economic development.
- The Centre’s Budget announcement to boost capital expenditure during 2023-24 by 33 per cent to Rs 10 lakh crore is likely to drive up blue-collar job creation.
- The Indian government is taking steps to formalize the blue-collar workforce Pradhan Mantri Shram Yogi Maan-dhan (PMSYM) scheme and the Employees’ Provident Fund Organisation (EPFO).
Sources and References
[1] India economic outlook, Dr. Rumki Majumder, Deloitte Global Economics Research Center, October 2023
[2] How E-commerce boom is shaping the logistics industry in India? LinkedIn, Nov 30, 2022
[3] Skill shortages: Unless it is addressed through scaling up training programmes, it will hit India’s growth, Financial Express, Oct 11, 2023 [4] How Technology Can Revolutionize Blue-collar Workforce Management? Startup Talky, Jan 28, 2022
[5] Short of skilled hands, companies turn to apprentices, By Rica Bhattacharyya, The Economic Times, Nov 29, 2023
[6] “Demystifying India’s Blue-Collar Skilling Landscape: Data and Insights”, Linkedin
[7] India’s unemployment crisis: Harsh Goenka highlights how shortage of skilled workers threatening Indian job market, Livemint, Aug, 2023
[8] 50% jump in blue-collar worker migration from India to Gulf nations; UP tops list, MONEYCONTROL NEWS NOVEMBER 17, 2023
[9] Number of women in blue-collar jobs increasing across manufacturing sector, Business Standard, Dec 3, 2023
[10] https://labour.gov.in/aatmanirbhar-bharat-rojgar-yojana-abry
[11] https://labour.gov.in/pradhan-mantri-rojgar-protsahan-yojanapmrpy
[12] https://www.ncs.gov.in/
[13] https://www.pmkvyofficial.org/home-page
[14] https://www.investindia.gov.in/production-linked-incentives-schemes-india
[15] https://www.nicdc.in/
[16] Business Today February 7, 2023
[17] Business Standard, Apr, 2023
[18] Soon, Korea to sign pact with India to source skilled manpower, open doors for blue-collar workers, Asian Community /news (ACN) Network, 9 Jul, 2023 [19] Germany looking at sourcing workers from India to address skill shortages, TIMESOFINDIA.COM/Updated: Mar 13, 2023
[20] Education and Careers Desk, News18.com, Last Updated: JANUARY 18, 2023,
[21] 14September, 2023by BW Online Bureau
[22] The economic Times Apr 25, 2023
[23] Centre for Monitoring Indian Economy, https://www.cmie.com, 24 Inc42 Mar, 2023
[25] World economic forum Apr, 2023
[26] business insider India, Apr 2023
