Blue-collar jobs will drive 70% of new job growth in India by 2030: report, ET Retail

Workers, who constitute more than 80 percent of India’s non-farm workforce, play a crucial role in powering and sustaining the country’s economy across various sectors.

McKinsey & Company predicts that by 2030, 70 percent of the 90 million new jobs expected in India will be blue-collar.

These positions constitute about 80 percent of the jobs in both the organized and unorganized sectors in India and serve as the main engine of the economy.

The fulfillment of these roles is of great importance for the growth trajectories of sectors such as production and logistics.

From 2024, hiring intent for non-white-collar positions increased by 10 percent compared to the previous year.

E-commerce is expected to see the highest salary growth in 2024, projected at 10.9 percent, followed by financial services with a projected growth rate of 10.1 percent

Based on 2023 data, blue-collar and gray-collar occupations contribute 1.25 percent to India’s gross domestic product (GDP).

With their indispensable contributions to sectors such as infrastructure, construction, transport and manufacturing, these workers form the basis of economic growth.

As India strives to achieve its development goals, strengthening and upskilling this workforce becomes a critical necessity.

Anshul Khurana, co-founder and CEO of Entitled Solutions, sheds light on the indispensable contributions of workers to the Indian economy.

Khurana said, “More than 80 percent of India’s workforce (excluding agricultural workers) has blue and gray jobs, which amounts to approximately 300 million workers.”

The significance of workers in the Indian economic landscape cannot be overstated.

Their labor fuels growth in key sectors, creates jobs and drives industrial progress.

Amid the country’s push to expand its manufacturing capabilities, demand for skilled workers has soared, underscoring their vital role in driving overall economic progress.

Khurana said: “Workers are the foundation of an economy, especially considering that sectors that are major growth levers (such as infrastructure, construction, transport, etc.) for the economy depend on them. This is even more true for India, as a large part of employment takes place in this segment.”

He added: “As India seeks to enter its next phase by expanding its manufacturing capabilities, workers’ jobs will become even more important. The massive increase in demand (most indices show demand of more than 40 percent year-on-year) For India to be ‘developed’ by 2047, upskilling and empowering workers will be one of the most crucial parts of the economy. puzzle.”

Despite their vital contributions, many workers in India remain underserved by traditional social security programs.

However, challenges remain in ensuring comprehensive prosperity for this segment of the workforce.

Khurana said: “A small portion of workers (who qualify as full-time workers) are covered by traditional social security programs such as the Employees Provident Fund (EPF) and the Employees State Insurance Corporation (ESIC), but a large portion of workers, including new -age gig workers, daily wage earners or contract workers, are not covered by these regulations.”

While some of these are covered under schemes such as the Employees Provident Fund (EPF) and the Employees State Insurance Corporation (ESIC), a significant portion, including gig workers and daily wage earners, do not have access to such benefits.

Khurana said: “There are sector-specific government schemes, such as those for construction workers (registered under the Building and Other Construction Workers Act), which give them access to certain health benefits, but these are administered by each individual state and are therefore non-standard and have many access issues.”

Recognizing this gap, the government is taking initiatives such as the eShram database to extend social security to unorganized workers.

“The government is now building a database of unorganized workers through eShram to hopefully bring some of these workers under the social security scheme,” Khurana said.

He added, “There are also other national programs like Pradhan Mantri Jan Arogya Yojana (PM-JAY) which are aimed at enabling access to healthcare for economically weaker sections including workers, but awareness of this is very low.”

At the same time, digital innovation is reshaping urban finance and addressing the financial inclusion needs of the urban poor, especially in the blue-collar sector.

Startups are leveraging technology to overcome barriers such as insufficient data, low digital literacy, and high user acquisition costs.

As India seeks to propel its economy towards development, it is of utmost importance to prioritize the well-being and empowerment of workers.

Government initiatives and innovative solutions from startups mark steps towards ensuring the inclusion and well-being of this crucial segment, essential to India’s journey towards economic prosperity and social progress.