India likely to employ 2.9 mn flexi staff by 2018

The flexi staff workforce at present in India has increased to 2.1 million from 1.7 million in 2015.

India is expected to employ 2.9 million flexi staff by 2018, thereby becoming the third largest country to employ contract employees globally, says a report.

With a growth rate of 12.3 per cent over 2015-18, flexi- staffing is becoming the job creation engine where over 9 million youth would be added to the organised workforce in the next 20 years, according to a report by Indian Staffing Federation (ISF), an apex body of flexi staffing industry.

The flexi staff workforce at present in the country has increased to 2.1 million from 1.7 million in 2015. It was 1.3 million in 2014.

ISF released its yearly comprehensive report titled "Indian Flexi Staffing Industry Research 2016: Sectoral and State Analysis" at the 49th Ciett World Employment Conference.

According to the report, most of the contribution to overall flexi staff would come from 11 states. These states will dominate the formal employment landscape with 2.4 million out of 2.9 million flexi staff in 2018 with Maharashtra topping the chart followed by Karnataka, Uttar Pradesh, Tamil Nadu Delhi and Gujarat.

With every 1 per cent conversion of informal workers to flexi, 1.5 million gain access to social security. A legal framework to protect the interest of this growing fraternity and many more ready to be tapped is the need of the hour, the report said.

"There should be national regulatory framework for flexi staffing in the country as it would address the concerns of trade unions whose utmost concern is fair wages for the workers," ISF president Rituparna Chakraborty said.

"India is one of the very few countries which has the younger workforce with every month a million kids getting added to India's workforce and potentially to the world's workforce," she said.

Organised flexi staffing players have made significant contribution towards social security as well as government revenues in the last few years.

The report is an insightful research which talks about the 15 most lucrative sectors for staffing and how specifically 11 states are steaming ahead in employment generation, she added.

Managing director of International Confederation of Private Employment Agencies (Ciett) Denis Pennel also advocated for national regulatory framework for flexi staffing to encourage employment under this mode.

He was of the view that regulatory framework has helped encouraging flexi staffing in the European countries.

He also stressed on the need for labour reforms in the country which is need of hour because laws are required to be in sync with changed times and requirements.