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Indian Staffing Federation Expects Logistics & Transportation To Drive Employment In 2019

Date: 2019-01-28 Author: Suchita Dutta, Executive Director, Indian Staffing Federation

With festive season creating momentum for employment through a surge in the e-commerce industry, the direct impact has been felt in the logistics and transportation industry. Indian Staffing Federation in its recent report has identified it as the propeller of jobs at the ground level specifically creating opportunities in Tier II and Tier III cities.

The flexi staff size in the logistics sector has grown by 57 percent in the last 3 years to 0.33 million. As per the Indian Staffing Federation, logistics and transport sector is:
One of the top sector in the flexi staffing industry with a staff size of 0.33 million
With 1.0 percent of flexi staffing penetration, the logistics sector is one of the most promising employment mobilizer.
It is one of the top-ranked in flexi staffing growth at 57 percent.
As per ISF-Nielsen report estimates, 15 sectors employ 90% of flexi staff in India out of which 11.2 percent are coming from the logistics and transport sector.
Karnataka and Maharashtra are the leading states followed closely by Delhi NCR to propel the employment in the sector.
While growth is being credited to the growing e-commerce sector which is creating a direct impact, but noticeably the changing consumerism behavior of the urban population in India is becoming more reliant on home deliveries; be it for grocery, food or electronics. Undeniably since last quarter, the employment of the delivery staff are witnessing a growing number.

The break-up of overall workforce employment for the Logistics and transport including flexi-staffing interestingly are,

3.86 million employed in the formal sector workforce. The categories will include those who are working in government, private and public limited companies, or co-operatives, trusts, societies etc.
The informal workforce is 17.10 million, which is quite significant, however lower compared to a few other industries.
There has been a noticeable growth, at approximately 57 percent, of flexi staff in 2018 compared to 2015, in the logistics and transport sector.
Logistics sector which was ranked third in 2015 jumped to the top slot in 2018, with 0.33 million, in terms of flexi staffing employment.
Factors influencing adoption of flexi staffing:

Fluctuation in logistics demand, partly seasonal but also unpredictable in part
Manpower requirements keep changing with nature, quantum and locational spread of work
High growth in logistics and warehousing requirement, especially with rapid expansion in e-retail
As per the ISF Indian Flexi staffing Industry Report, the expected growth in logistics from 2015 (0.05 million) to 2018 (0.11 million) was 0.06 million. The penetration of flexi staffing in the logistics and transport sector is 1.02% with 18.43 percent of formal penetration.

In a consumption-driven economy, there always lies an absolute need for effectual and unswerving logistics solutions connecting every household for inclusive deliverables. The staffing industry has been the propeller to the formalization of the sector and increasing employment opportunities.

(As originally appeared in Business World – http://www.businessworld.in/article/Indian-Staffing-Federation-Expects-Logistics-Transportation-To-Drive-Employment-In-2019/02-01-2019-165724/)

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