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After witnessing an overall dip in blue collar jobs due to the coronavirus induced lockdown, there has been a sharp recovery led by delivery segment, including food and grocery, according to start-up placement firm Vahan.
The demand for blue-collar workers is back to 100 per cent of pre-COVID-19 levels in the food and grocery delivery segment in the post lockdown phase and the delivery sector is now creating 2.5 lakh-3 lakh delivery jobs every single month buoyed by IPL and the festive season, the company said.
Citing data captured by Vahan’s app, the company said the hiring from delivery segment is followed by that from manufacturing, ancillary and BPO sectors.
Commenting on the development, Vahan Co-founder and CEO Madhav Krishna said, “Demand for blue-collar jobs, which saw an overall dip during the covid lockdown, has witnessed sharp recovery led by the delivery segment which include food as well as grocery delivery.”
This trend points to growing consumer optimism in India about economic recovery amid the pandemic, he added.
“Blue-collar industry is an underserved market in India. At Vahan, we are leveraging the power of technology to create India’s employment exchange 2.0 that seamlessly connects employers and job seekers effectively, with speed and at an unprecedented scale,” he said.
Vahan, which uses WhatsApp-based virtual assistant to automate hiring of blue-collar workforce, said it saw a rapid surge in uptake of its technology solution by both job seekers and job providers looking to get connected.
The company said currently, it has over 4 million users from over 1,200 cities and has already placed 70,000 people across India.
Over 10 lakh blue-collar jobs are estimated to be lost due to the COVID-19 pandemic, with an income loss of Rs 2467 crore per month, a report by Betterplace, a platform for blue-collar workforce management, has revealed. The report states that the overall demand for blue-collar jobs in 2020 would be 14 lakhs, with the gig economy leading the demand. However, this is 30% less than the demand in 2019.
The Betterplace Job Report 2020 indicates that sectors like delivery and healthcare will surpass pre-COVID levels and job opportunities will see massive growth in tier 2 and 3 cities.
According to the report, one-third of the demand for jobs will come from Karnataka, Tamil Nadu and Telangana, while the maximum job creation will happen in Bengaluru, followed by Hyderabad, Delhi and Mumbai.
In terms of migration trends, Bengaluru and Hyderabad are the top destinations for blue-collar job seekers, the report finds.
In terms of sectors, on-demand driver segment was the worst hit accounting for 44% job losses.
Betterplace said in a statement that the report is based on data from the past 5 years, 1000+ companies, 20,000 pin codes, 80 lakh employees and millions of data points.
Pravin Agarwala, Co-founder CEO, Betterplace, says, “Based on our report, we are already seeing green shoots appear in demand generation in cities like Bangalore, Hyderabad, Mumbai and Delhi. This report reinforces the fact that the jobs pipeline on the ground is robust.”
Saurabh Tandon, Co-founder COO, Betterplace, says, “We believe that demand generation will be faster in tier 1, 2 3 cities like Hyderabad, Pune, Noida, Gurgaon. As per the Job report 2020, reasons for recovery will be driven by factors like the critical need to rebuild support systems for essential goods, continuity of businesses, better understanding and infrastructure to fight the Pandemic. As the report indicates that safety and health are now of paramount concerns on both sides of the aisle, the Blue-collar segment will embrace digital transformation at every level – right from digital onboarding, payroll, attendance and flexible hours. Large employers have already taken a lead in this direction, we expect mid-size companies in security and facility also to embrace digitalization across their distributed workforce management verticals.”
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