Fresh employment generation within the flexible (flexi) staffing industry grew 15.3 per cent year-on-year during FY24, according to the latest annual employment report released by the Indian Staffing Federation (ISF) on Thursday.
The staffing industry body noted that the total flexi workforce employed by ISF members increased by 220,000 in FY24 to reach 1.6 million. The employment demand was primarily driven by sectors like FMCG, e-commerce, manufacturing, healthcare, retail, logistics, banking, and energy.
The general staffing industry registered a growth of 16.2 per cent, while employment in IT staffing contracted by 4.4 per cent during the fiscal year.
Earlier in FY23, IT staffing had contracted by 7.7 per cent.
“The IT staffing industry witnessed a gradual recovery in demand impact coming from geopolitical scenarios developing across the world, including US markets, the Russia-Ukraine war, and global financial markets. The impact comes with clarity that companies are recovering in their demands after right-sizing capacity in the past 2 years. The companies are focused on enhancing productivity, in order to address the market pressures,” the report noted.
The report also noted that the average salary within flexi staffing is Rs 22,000, as this industry creates formal employment that is much above minimum wages. Delhi/NCR, Karnataka, Maharashtra, Gujarat, and Telangana have the highest salary averages due to the good spread of industries where contract staffing is highly adopted.
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.
“The sectors that contributed to steady growth were e-commerce, logistics, and manufacturing along with healthcare, retail, and energy. However, there remains a scarcity of skilled workforce across some of these sectors due to talent shortage and labour mobility,” he added.
Besides, the report also highlights the significant social impact of the staffing industry, particularly in providing freshers and first-time job market entrants with their initial formal employment opportunities.
“The industry’s efforts facilitated the transition from informal to formal employment, offering social security, employment mobilisation, and relevant skills development programmes. Additionally, the staffing industry ensured wage protection for these newcomers, ensuring fair remuneration for their work. Notably, the industry’s endeavours also led to improved participation of women in the workforce, as staffing companies offer work opportunities that cater to their specific needs and responsibilities,” the report noted.
First Published: Jul 11 2024 | 7:57 PM IST
