The Indian Staffing Federation (ISF) has recently chronicled the significant shift towards job formalisation in India from 2015-2018. This shift, reportedly influencing over seven million jobs, has been attributed to a series of policy reforms and government initiatives designed to boost employment rates.
The ISF Report
In its report ‘Impact of Key Reforms on Job Formalisation and Flexi-Staffing’, ISF revealed that since 2015, an additional 1.2 million workers have joined the flexi-workforce, and another 1.53 million are projected to join within the next three years. These numbers reflect the government’s push to enhance job creation by stimulating aggregate demand through various strategic avenues including formalisation, industrialisation, urbanisation, financialisation, and skilling.
Future Projections
As per the ISF’s projections, by 2021, India’s flexi-workforce will amount to 6.1 million. Five sectors expected to contribute significantly to these numbers include logistics, banking, financial services and insurance (BFSI), IT/ITeS, retail, and government. Together, these sectors will be employing more than 55% of the total flexi-workforce.
| Sector | % of Total Flexi-workforce Employed (by 2021) |
|---|---|
| Logistics | TBD% |
| Banking, Financial Services and Insurance (BFSI) | TBD% |
| IT/ITeS | TBD% |
| Retail | TBD% |
| Government | TBD% |
Growth Rate of the Flexi-Staff Space
In 2018, the flexi-staff space grew at a Compound Annual Growth Rate (CAGR) of 16.3%. This growth rate is expected to surge to 22.7% from 2018-2021, proving the significant role flexi-staffing plays in job creation.
The Power of Formalisation
The last three years have seen a demonstrable shift towards formal employment, validating the effectiveness of reforms such as the Payment of Wages Act and Employee’s Provident Fund (EPF). These reforms are facilitating the transition from informal to formal employment, ultimately resulting in greater job security and better working conditions.
About the Indian Staffing Federation (ISF)
The ISF represents the staffing industry/private employment services and liaises with government agencies and other trade bodies on their behalf. Its purpose is to spearhead long-term growth and make sustainable contributions to the economy through its services. Currently, staffing industry covers just a 2% share of the potential employable size in India.
Current Landscape and Future Goals
Of the 400 million employable individuals in the country, merely 10% are employed in the organised sector, whereas about 250 million are self-employed. The rest are divided between unorganised sector and temp/flexi-staffing, accounting for nearly 110 million workers. ISF seeks to expand this market and is working towards involving law-making authorities to create suitable laws for the management of private employment services.
