Flexi staffing increased in key sectors, such as e-commerce, logistics, manufacturing, tourism and hospitality, Fast moving consumer goods (FMCG), consumer durables, and healthcare, though the IT sector registered a decline in the financial year 2022-23, a report released by Indian Staffing Federation (ISF) said on Tuesday.
The employment conditions as per forward-looking surveys are showing better sentiments, DBS said in another report.
Jobs in the flexi staffing industry grew 14 per cent in India in 2022-23, the ISF said in its Annual Flexi Staffing Industry Employment Trend Report-2023.
1.77 lakh flexi jobs were added in FY23, with women’s participation in the flexi workforce at 24 per cent in FY23. The report said that the total flexi workforce employed by members of the IFS reached 14.4 lakh as of March 2023.
General flexi staffing (excluding IT Flexi Staffing) recorded growth of 15.3 per cent in new flexi jobs during FY23, adding 1.47 lakh new flexi jobs across general staffing roles. However, the IT flexi staffing segment registered a decline of 7.7 per cent year-on-year in new flexi jobs by the end of the last financial year.
The demand for employment in general flexi staffing was primarily generated by sectors such as FMCG, e-commerce, manufacturing, healthcare, retail, logistics, banking, and energy. Conversely, IT flexi staffing observed a decline of 6 per cent quarter-on-quarter in the same period. The drop in new employment generation within the IT Flexi Staffing sector mirrored the global slowdown in IT hiring and the ongoing process of employment right-sizing across markets,’ it said. In a separate research report, DBS Bank’s Senior Economist Radhika Rao said unemployment rates have fallen sharply from the mid-pandemic highs.
Mar-Apr23 rates are up a touch, with urban a shade more than rural, likely a reflection of the pick-up in the Labour Participation rate.labour markets have proved to be resilient yet far, barring few pockets,’ the report said.
It, however, said that the breakdown of employment by area and job scope points to a higher concentration of self-employed in rural areas and regular salaried in urban areas. ‘Manufacturing goods exports continue to outpace labour intensive segments, reflecting the changing dynamics in the country’s export basket, including in pockets like electronics, engineering goods, specialty chemicals,’ it said.