India’s flexi staffing industry experienced a significant rise of 14 percent in job growth during the financial year 2022-23.
The Indian Staffing Federation released the data in its Annual Flexi Staffing Industry Employment Trend Report-2023.
The report highlighted various sectors, including e-commerce, logistics, manufacturing, tourism and hospitality, fast-moving consumer goods (FMCG), consumer durables, and healthcare, saw increased flexi staffing.
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However, the IT sector saw a decline in this type of employment.
In FY23, approximately 177,000 flexi jobs were added, and women accounted for 24 percent of the flexi workforce.
The total number of flexi workers employed by ISF members reached 1.44 million by March 2023.
While general flexi staffing (excluding IT) recorded a growth of 15.3 percent in new flexi jobs, adding 147,000 positions.
But the IT flexi staffing segment experienced a decline of 7.7 percent in new flexi jobs compared to the previous year.
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The demand for general flexi staffing primarily originated from sectors such as FMCG, e-commerce, manufacturing, healthcare, retail, logistics, banking, and energy.
On the other hand, the slowdown in IT flexi staffing reflected the global slowdown in IT hiring and ongoing employment right-sizing efforts.
A separate report by DBS Bank noted unemployment rates in India had significantly decreased from the highs observed during the pandemic’s peak.
The report mentioned unemployment rates in March and April 2023 slightly increased, with urban areas experiencing higher rates than rural areas.
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This was attributed to the revival in the labor participation rate.
The report also highlighted self-employment was more prevalent in rural areas, while regular salaried jobs dominated urban areas.
Additionally, the manufacturing sector’s export of goods continued to outpace labor-intensive segments.
It reflects changes in India’s export basket, particularly in electronics, engineering goods, and specialty chemicals.
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