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Seven million jobs created in formal sector in last three years: Report

Our Bureau New Delhi | Updated on June 18, 2019 Published on June 18, 2019

Over seven million jobs have been formalised between 2015-2018 due to reforms and initiatives taken in the past three years, according to a report released by the Indian Staffing Federation (ISF), a body of the flexi-staffing industry.

Flexi-staffing is more commonly known as temporary staffing and predominantly focuses on the white collar industry.

“In the last three years there have been amendments in various policies, such as the payment of wages act and EPF reform, so we wanted to understand how it has impacted formal jobs. We mapped all of this and realised that about 70 lakh jobs have been created in the formal sector over the last three years on account of these policy changes,” said Rituparna Chakraborty, President, ISF.

The report titled, ‘Impact of key reforms on job formalisation and flexi-staffing’ mentioned that 1.2 million workers have been added to the flexi-workforce since 2015 and a further 1.53 million are to be added over the next three years.

It also points out that the government’s current agenda of job creation can be achieved by boosting the aggregate effective demand in the economy through formalisation, industrialisation, urbanisation, financialisation and skilling, added Chakraborty.

The report further mentioned that India will have a 6.1 million flexi-workforce by 2021. Sectors such as logistics, banking, financial services and insurance (BFSI), IT/ ITeS, retail and government would be the top five sectors, employing over 55 per cent of the total flexi-workforce by 2021.

It added that the flexi staff space grew at a Compound Annual Growth Rate (CAGR) of 16.3 per cent in 2018 and is expected to further accelerate to 22.7 per cent from 2018-2021.

“The report establishes flexi-staffing as a key job creation engine. The acceleration in momentum towards formal employment witnessed in the past three years clearly means the reforms are impacting,” said R.P. Yadav, Vice-President, ISF.

Published on June 18, 2019
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