Flexi-Staffing Key To Job Creation
Indian flexi-staffing to grow at 22.7 percent CAGR across the next 3 years and 6.1 million employees to be in flexi workforce by 2021
Indian Staffing Federation (ISF), has unveiled a report on ‘Impact of Key Reforms on Job Formalization and Flexi Staffing’. The report, prepared by IMRB Kantar for ISF, is based on interviews with Heads of HR in 15 verticals. The report throws light on most effective reforms & initiatives and their subsequent effect across sectors in job formalization. It also identifies emergent challenges in the transition from informal to formal employment.
India emerges as the 5th largest worldwide for in flexi-staffing at 3.3 million flexi staff in 2018. Flexi staffing grew at a CAGR of 16.3 percent in 2018 which will further accelerate to 22.7 percent from 2018-2021.
1.2 million have been added to flexi-workforce since 2015, and a further 1.53 million to be added over the next 3 years. GST & demonetization were two key reforms to drive job formalizations in 2016-18. Reforms/policies to formalize around 11.03 million jobs between 2018-21.
Current and imminent policies and reforms to catalyze the push from informal to the formal sector; over 7 million jobs formalized between 2015-18 and 19.9 million workforce growth (formal sector) in 2015-18.
India to have 6.1 million flexi workforce by 2021 with IT/ITeS to lead adoption with 12.5 percent penetration. Flexi-staffing has the potential to be among the key job creation engines and the sustenance of reforms and policy changes is key to the momentum being maintained. Logistics, BFSI, IT/ITeS, retail, and government are the top 5 sectors employing over 55 percent of the total flexi workforce by 2021.
Rituparna Chakraborty, President, ISF, said, “With one million youth added to the workforce every month, India’s position and performance in the labour area are of both significance and immense interest to the world. 2015-2018 have also seen some of the most significant reforms and policy shifts in the space that have accelerated the transition from informal to formal employment in the same period.”
“The report points out that government’s current agenda of job creation can be achieved by boosting the aggregate effective demand in the economy through formalization, industrialization, urbanization, financialization, and skilling,” she further added.
R P Yadav, Vice President, ISF, “The report establishes flexi-staffing as a key job creation engine. The acceleration in momentum towards formal employment witnessed in the past 3 years clearly means the reforms are impacting and in the direction to create further job formalization if the momentum is sustained or improved. The higher CAGR for flexi-staffing in 2018-21 also spells good tidings for space which truly is well on its way to emerge among the top 3-4 markets for flexi-staffing worldwide in a couple of years.”