Despite the ongoing debate on job creation in the country, HR tech platform BetterPlace forecasts 21 lakh new blue-collar jobs to be created in the next one year, with delivery personnel and drivers accounting for nearly 14 lakh of these jobs.

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BetterPlace, in its first-ever comprehensive report on blue collar jobs data in India, said the growth rate of blue collar jobs in the gig economy is much higher than that of traditional jobs.

In a gig economy, temporary or freelance workers are hired as they are cheaper than full-time employees. The trend towards the gig economy is catching up with many foreign companies, including Uber, Walmart and others, hiring gig workers to meet their business needs.

The migration from traditional blue-collar jobs to gig based jobs is due to increased flexibility, higher salaries, attractive incentives and higher take-home due to minimal deductions, according to the report.

The report said that wages for the new set of blue-collar workers are set to increase, with 50 percent of the workforce set to earn more than Rs 20,000 a month.

But high attrition will remain a key challenge, with the report estimating that 50 percent of the workforce moves out of jobs within 90 days.

“This is a huge concern for companies employing this workforce, which can be addressed through employee benefits such as health insurance,” BetterPlace CEO Pravin Agarwala said.

Here are some other highlights of the report:

More than 8 lakh jobs to be opened up in the logistics sector, followed by on-demand and other transport linked drivers (around 6 lakhs) and security guards (about 3,50,000)

Southern states — Karnataka, TN, Andhra, Kerala, Telangana — will generate 40% of the blue collar jobs in India

Maharashtra to generate more than 4 lakh jobs in one year and is on top of the table followed by Karnataka which is expected to generate over 3 lakh jobs in the blue-collar vertical

Among tier 1 cities, Bangalore is the largest job creator with close to 2,35,000 jobs, closely followed by Delhi at 2,25,000 jobs approximately. Kolkata scores the lowest with close to 24,000 blue collar jobs in the city but growing well year on year.

Hyderabad and Chennai fast emerging as jobs centres with 54,052 and 93,222 blue collar jobs respectively.

First Published:Mar 14, 2019 10:41 AM IST