In a challenging year, Indian Staffing industry ends the FY 2021 with a modest 3.6% growth over March20
Flexi workers employed in Y21 were +21% with higher education; +11% with higher skills than Y20
Q4FY21 ending showed a massive recovery, crossing 1.03 million flexi staff deployed across industries through ISF member companies
Women participation in Flexi workforce grew +6% during Covid
Top 5 sectors – Healthcare, IT & ITeS, Pharma, Edutech and Ecommerce to lead temp employment growth by more than 35%, in the ensuing quarters
Indian Staffing Federation (ISF), the apex body that represents the staffing companies in India, unveiled their first ever flexi staffing employment trends in an annual report titled ‘Annual Flexi Staffing Employment Trends Report: 2021’. The report, prepared by ISF, is based on the primary research of over 100 staffing members across the country in a span of 60 days. The survey covers the various dimensions of employment across top 15 sectors including- IT/ITeS, Telecom, Banking, Retail, E-Commerce, FMCG & CD, Manufacturing, Pharma and Healthcare, Insurance, Edutech, Logistics Transport to assess and present a holistic view of the flexi staffing industry during the pandemic in its report findings.
The report for the first time throws light on the resilience of the temp industry in India, the new opportunities and trends that were observed during the pandemic and the promising sectors that would redefine the future course of temp staffing in India in the coming years.
Notable findings of the report include:
- Despite the challenging year, Indian Staffing industry ends the FY 2021 with a modest 3.6% growth over Mar’20.
- Q4FY21 ending showed a massive recovery, crossing 1.03 million flexi staff deployed across industries through members of ISF
- ISF members saw a minimal decline in Q121 (-7%) followed by a sharp rise Q221 onwards indicating corporate India recovery and staffing companies agility towards Covid proof sectors
- Flexi workers employed in Y21 were +21% with higher education; +11% with higher skills than Y20
- In 2021 +31% growth in flexi work compared to other formats of employment
- An overall net addition of 157,000 more people added to flexi workforce, compared from 2019
- Women participation in Flexi workforce grew +6% during Covid during the period
- The top 5 sectors to drive temp demand: Healthcare, IT & ITeS, Pharma, Edutech and Ecommerce.
- Healthcare, IT & ITeS, Pharma, Edutech and Ecommerce are expected to lead employment growth by above 35% in the upcoming Qtrs
- Temp staffing growth were witnessed in IT staffing, E-com, Logistics, Manufacturing despite the pandemic impact.
- Employment sentiments findings state that IT & ITeS will be driven by digital integration and investment in expedited automation processes as Tech firms bets big on campus and entry level talent especially in the temp role, thereby driving positive future prospects for freshers.
- For Edu-tech sector, with the new age pedagogic adoption and shift to digital solutions and collaborative platforms, growth drivers would move beyond K12 to include skill development and learning management systems, etching temp manpower requirement considerably.
- Temp demand in Healthcare and Pharma will be driven by the preparation for better response management system for 3rd wave of Covid and the R&D investment into manufacturing of vaccines and associated OTC drugs.
Lohit Bhatia, President, Indian Staffing Federation, said, “While India has been fearlessly battling the impact of the Covid waves there is no denying that temp staffing stood up against the test of time and helped key sectors to continue their business. Despite the challenges, the staffing industry not only ended the FY 2021 with a modest 3.6% growth over Mar’20 and but also concluded with more than 1.03 million flexi staff across industries. This growth reiterated the resilience of Indian Staffing industry, its customers and maturity and that it will continue to be India’s key job creation engine. Am happy to be unveiling ISF’s first ever Flexi Staffing Employment Research Report “Annual Flexi Staffing Employment Trends: 2021 which will aid the industry to create the success roadmap for the coming quarters and set greater milestones”.
Farhan Azmi, Vice President, Indian Staffing Federation added, “At this time of the pandemic, staffing industry has been resilient and there has been significant growth momentum created by existing and new emerging business requirements in sectors like IT, FMCG, Edutech, Ecommerce pharma and healthcare. Acceleration towards formal employment continues to be the key to India’s economic growth.”
In her comments, Suchita Dutta, Executive Director, Indian Staffing Federation, said, “With over 31% growth in flexi work compared to other formats of employment, this report not only shows the maturity of the growing acceptance of formal contract employment options, but also the fact that when the focus to ensure social protection is provided, it can turn around the employment scenario of the country. With the landmark Labour reforms in the anvil, the report indicates the future of the industry will propel further formalisation through formal staffing. Further simplification of labour laws, policies and better regulatory cholesterol will mobilize new in-roads for both the staffing industry and the Indian economy.”