Zoomed Out | Why India’s burgeoning labour shortage is a hurdle for its dream of manufacturing for the world

The implications of labour shortage can be far-reaching. It could hamper India’s ability to meet domestic demand and fulfil international orders and undermine its potential as a global manufacturing hub.

Every year, across India, 12 million young Indians enter the employable age. In fact, by 2030, the country is projected to have 1.04 billion working persons, in the employable age group.

While other nations of the world grapple with the challenges of ageing workforces and a pronounced scarcity of labour, India uniquely experiences a situation where workforce supply is expanding faster than demand, making it the only country with this trend. However, despite this huge demographic dividend, India is facing a persistent shortage of skilled and unskilled labour.  

Shortage of labour in India

Data from 2023 highlights the severity of the issue, indicating that India currently faces a significant shortfall of workers, across multiple disciplines, including factories, engineering units, manufacturing and assembling plants, and infrastructure projects. In fact, a report by the National Skill Development Corporation (NSDC) estimated that India’s skilled labour demand reached approximately 103 million workers in 2022. However, the supply fell short by a staggering 29 million workers. Another report by the Confederation of Indian Industries (CII) — Decoding Jobs, estimated that there would be a reduction in the number of migrants returning to tier-1 cities in 2022, compared to 2021, resulting in a significant gap of 68 percent between demand and supply. This report also estimated a decrease of 32 percent in migrants returning to non-tier-1 cities. It also emphasised the limited availability of talent in white-collar jobs across all levels, including entry-level, mid-level, and upper-level positions. This gap signifies a crucial hurdle in achieving India’s vision of becoming a global manufacturing hub and economic powerhouse. The dichotomy needs to be addressed urgently before it becomes a millstone around the country’s neck.

Causes and implications of India’s labour shortage

Typically, the word labour refers to a group of people who are employed to do physical work. In India, this might comprise groups with low academic qualifications, who earn wages either daily, weekly or monthly, with little or no advantages in terms of guaranteed job security, minimum wage employment, essentials such as identification documents, credit facilities, insurance coverage, access to quality education etc. The annual number of interstate migrants in India is estimated to be between 5 and 6 million, with a yearly growth rate of 4.5 percent. This figure includes both documented and undocumented workers, who engage in seasonal migration across multiple destinations, working for different employers and spanning various industries. Although the Covid-19 pandemic-linked lockdowns were often cited as the main reason why workers left India’s Tier 1 and Tier 2 cities, to return to their hometowns, the truth is that this problem has been building up over the years. A closer look at this landscape will make things clearer.

Migrant workforce: A large number of the country’s labour force comprises migrants, from its hinterland. While their primary occupation may be agriculture, they travel to cities to earn a livelihood during the lean seasons during which farming does not provide them with an income. Though huge in number, these people are not a part of India’s formal workforce. And therein lies the big problem.

Problem of wages: Migrants, along with other informal workers, are disinclined to accept low-quality jobs in urban areas, due to the combination of low wages and inadequate access to housing, healthcare, leave and other essential facilities. Instead, they prefer engaging in local lower-paying work opportunities such as MGNREGS or other casual employment options which meet their immediate survival needs. They have chosen rural poverty over urban poverty.

Education system: The existing education system in India often emphasises theoretical knowledge over practical skills. Vocational training programs are underdeveloped, leading to a mismatch between industry requirements and the skills possessed, even by graduates. This deficiency restricts the talent pool available for the manufacturing sector.

Lack of skills development: A diverse set of specialised skills is essential in the manufacturing industry, encompassing expertise in robotics, automation, engineering, programming, and various other technical domains. Despite the growing reliance on machines and automation, there remains an unfulfilled demand for workers capable of operating and maintaining these technologies. Unfortunately, workers lack access to the training required to stay updated and adapt to evolving modern-day demands.

Migration to other sectors: Service-oriented industries, such as e-commerce, information technology, business process outsourcing (BPO), security, retail and hospitality have lured individuals away from manufacturing and low-paying factory jobs. These sectors offer more attractive remuneration packages and perceived job stability, making it challenging for the manufacturing industry to attract skilled and unskilled workers.

Perception and social stigma: Manufacturing jobs are sometimes associated with low social status and menial work. This perception, combined with a lack of awareness about the potential for growth and advancement in the sector, dissuades employable individuals from pursuing careers in manufacturing.

Tensions caused by resident population: Oftentimes, tensions are caused by the domestic population within a state, resulting in the mass exodus of migrant labour, back to the safety of their hometowns. The implications of the labour shortage can be far-reaching. It could hamper India’s ability to meet domestic demand and fulfil international orders and undermine its potential as a global manufacturing hub. The shortage could also limit technological advancements, as skilled workers are crucial for driving innovation and implementing advanced manufacturing techniques. 

Solutions To Bridge The Labour Gap

Addressing the skilled labour shortage requires a multi-pronged approach involving collaboration between government bodies, educational institutions, and industry stakeholders. Here are a few potential workarounds:

Better incentives: By enhancing working conditions within factories and construction sites, as well as implementing benefits like higher wages, emergency healthcare, colonies/ hostels for workers near industrial clusters, etc, companies can enhance their ability to attract as well as retain workers in the manufacturing industry.

Curriculum revamps: Educational institutions must rethink their curricula to include industry-relevant training. Strengthening vocational training programs and promoting apprenticeships can bridge the gap between theoretical knowledge and practical skills.

Public-Private Partnerships: Collaborations between the government and private enterprises to foster skill development initiatives. Industry participation in curriculum design, training programs, and on-the-job training can enhance employability and align individual skills with industry requirements.

Awareness and perception shift: Initiatives must be undertaken to educate students, parents, and society about the opportunities and growth potential in the manufacturing sector. Much like the campaigns to recruit soldiers into the army, highlighting success stories and creating platforms for interaction between industry professionals and students can help change perceptions.

Upskilling and reskilling: Encouraging existing workers to upskill or reskill themselves through targeted training programs can help meet the immediate demand for skilled labour to a great extent. Government and private sector support for such programs can incentivise workers to acquire new skills.

More diversity in the workforce: Greater efforts are required to encourage women to enter the field. Manufacturers must examine the eligibility criteria for the positions they offer and implement workplace modifications that foster diversity and enable the recruitment of a broader range of employable individuals. While the government and industry are working on initiatives such as the e-Shram portal, and the National Database of Unorganised Workers (NDUW) to ease unorganised workers’ access to welfare benefits and much more needs to be done to fill the gap areas. Countries like Germany, Australia, Japan, the Gulf countries and others are opening their doors to low-skilled Indian labour. It is imperative that we act quickly, to prevent yet another drain like the brain-drain, from setting us farther from our dream of becoming the world’s go-to place for everything that can be made by man and machine.

New Lease of Life for Gig Economy

The gig economy is continuously evolving and has seen 93% growth since Jan 2023 in the white-collar space as of July 2023

A report by CIEL Group, says demand for gig workers in white-collar jobs has risen recently and it reveals that 55% of the organisations have opted to hire gig workers for their work.

With the festive season approaching, it is not unusual to see a hiring surge across all industries. But 2023 is seeing a paradigm shift in the world of hiring as gig employment becomes increasingly prevalent among all sectors, especially e-commerce.

Gig workers have an upper hand compared to regular workers as they offer companies with several advantages including flexibility in scaling their workforce up or down based on project needs or fluctuating workloads along with cost savings.

A report by CIEL Group, a talent solutions provider, says demand for gig workers in white-collar jobs has risen recently and it reveals that 55% of the organisations have opted to hire gig workers for their work. Furthermore, in some cases, the proportion of gig workers has reached as high as 20% of their total workforce, suggesting a huge share of gig workers within these organisations.

Sectors like e-commerce, food tech, logistics, and retail are expected to ramp up the hiring of temporary workers, especially in roles related to delivery, logistics, warehouse, sorting, and packing, as they gear up for the festive rush.

“Clearly, the gig economy seems to be the driving force behind the seasonal scaling of workforces,” says Nirupama VG, founder & MD, talent solutions firm.

And it’s not just companies that are on the lookout to hire gig workers, individuals are also inclined to pursue gig work. The CIEL, which surveyed more than 400 organisations pan-India across sectors and more than 1200 white-collar gig workers, reveals that 38% of gig workers choose such jobs due to ‘flexibility’ in working on different projects. “The allure of diverse assignments allows gig workers to continuously expand their skill set, gain valuable experience across various industries, and pursue their passion for diverse work opportunities,” says the CIEL report.

The imperatives

The gig economy is continuously evolving and has seen 93% growth since Jan 2023 in the white-collar space as of July 2023. As per reports, 40% of companies are facing talent shortages for emerging skills.

“The emerging demand for certain niche skills, and the need to bridge the temporary skill gaps has led to the overall growth of the gig economy,” says Sekhar Garisa, CEO, foundit.

As per a Niti Aayog report titled ‘India’s Booming Gig and Platform Economy,’ the Indian gig workforce is expected to swell to 23.5 million workers by the year 2029-30, which is almost a 200% jump from the current 7.7 million.

However, it’s important to understand the reasons behind the sudden uptick, both from companies’ side as well as from the workers’ perspective.

As festivities inch closer, companies, especially in e-commerce and logistics, brace for an explosion in orders. Hiring gig workers allows these companies to efficiently navigate this temporary demand spike.

Nirupama notes that cost savings also play a crucial role. “Employing gig workers facilitates companies to bypass costs associated with permanent employees, such as benefits and long-term commitments.”

On the other hand, workers look at the festive season as an opportunity for lucrative endeavours. Many seek roles during this period for the prospect of earning a higher income in a short span.

“The temporary nature of these jobs provides flexibility, allowing workers to choose assignments based on their convenience and availability,” adds Nirupama.

However, it is essential to underscore that being a part of the gig economy is an uphill battle in itself. The uncertain nature of their employment that comes with unstable income, lack of stability and predictability and fluctuating work hours are some significant challenges that the workers face. Moreover, most gig workers do not have access to essential benefits such as health insurance, retirement plans, and paid leave.

Nirupama says that while the landscape provides autonomy, the absence of a concrete employment relationship can sometimes lead to discrepancies in roles and expectations. “It’s crucial to navigate this space with awareness,” she suggests.

Lessons for HR Professionals from Chandrayaan-3

On August 23, 2023, the Indian Space Research Organisation (ISRO) accomplished a milestone with the successful landing of the Chandrayaan-3 on the moon. This mission was not just a triumph in space exploration but also a testament to ISRO’s resilience and spirit. Here we dissect the journey, unveiling the lessons HR professionals can imbibe from this comeback mission.

Nirupama V.G., Founder & MD of Ad Astra Consultants adds “Chandrayaan-3’s triumph is a reflection of what resilience and teamwork can achieve. Its success mirrors the principles that guide us at Ad Astra Consultants: fostering innovation, learning, and an unyielding spirit. It teaches us to view challenges as stepping stones to greater heights, a lesson that is not just invaluable for the HR sector, but for every realm that seeks to redefine boundaries and achieve success.”

Journey and Purpose

The Chandrayaan-3 mission was more than just another lunar exploration; it was a beacon of determination and adept technological advancements. It stood as a testament to India’s prowess in space technology and a showcase of resilience, following the Chandrayaan-2 mission, which faced a setback in 2019 due to a hard landing.

Designed to safely land a rover in the moon’s highlands near the south pole, the mission carried the hope and expectations of an entire nation. The goal was clear: demonstrate advanced landing and roving capabilities, while conducting in-depth experiments through onboard instruments.

A noteworthy tech advancement was the laser-based guidance system incorporated into the lander. This system, boasting an array of sensors and actuators, played a role in achieving a precise and soft landing on the lunar surface, starting a new era in exploration.

The Backbone of the Mission: Resilient Leaders and Teams

The true spirit of the mission lay in the individuals and teams who worked behind the scenes, displaying resilience and ingenuity. The project director, P Veeramuthuvel, showcased exemplary leadership, steering the mission to success after analysing and rectifying the causes of the previous mission’s failure.

S Unnikrishnan Nair, the Director of the Vikram Sarabhai Space Centre (VSSC), was the force behind the Launch Vehicle Mark-III development and testing, overcoming hurdles including the delays brought about by the pandemic. Together with M Sankaran, the Director of U R Rao Satellite Centre (URSC), they led teams that breathed life into Chandrayaan-3, incorporating new technologies and saving time and costs by reusing components from Chandrayaan-2.

The HR Perspective: Drawing Parallels from ISRO’s Resilience

The Chandrayaan-3 mission exemplifies how resilience, innovation, and collaboration can redefine success in challenging situations. Just like ISRO, HR professionals can get lessons to cultivate a thriving and resilient workforce.

Recruitment: Merit-based recruitment, like ISRO’s, ensures the acquisition of top talent. By fostering a feedback-rich environment and seeking skilled individuals from diverse backgrounds, HR can curate a balanced and high-performing team.

Training: Continuous learning, as demonstrated by ISRO through its rigorous training regimens, is key to maintaining an updated and skilled workforce. Organisations should invest in skill-building, promoting a culture of continuous improvement.

Welfare: Just as ISRO provides a supportive environment for its employees, companies should cultivate a similar atmosphere. Benefits, mental health support, and acknowledging achievements are vital for a motivated workforce.

Innovation: Like ISRO, which constantly pushes technological boundaries, organisations should promote a culture of innovation. Encouraging employees to approach problems creatively can lead to groundbreaking solutions.

Resilience: ISRO’s comeback with Chandrayaan-3 is a lesson in perseverance. In corporate settings, fostering a mindset that sees failures as learning opportunities ensures long-term growth and sustainability.

Insights from the Experts: Resilience in Practice

Recent studies emphasise the value of resilience in the workplace. For instance, a Harvard Business Review study highlighted that resilience thrives not only as an individual trait but also through relationships and networks. 

Adding to this, a comprehensive study by the ADP Research Institute provides further insights. In 2020, they conducted a global analysis exploring resilience and engagement levels across 25 countries. By surveying over 26,000 individuals, they aimed to aid leaders in fostering both personal resilience and a deeper engagement within their teams. The research offers a roadmap for leaders to nurture engagement and resilience in their teams, highlighting that understanding and support at the organisational level can enhance overall resilience and productivity in the workplace.

Such findings suggest that organisations can bolster resilience by fostering camaraderie and a sense of shared purpose.

Future Implications & Trajectories

The success of Chandrayaan-3 solidifies ISRO’s position in global space exploration, potentially leading to further international collaborations. Similarly, by adopting ISRO’s resilience-driven approach, businesses can position themselves at the forefront of their industries.

As we move towards an evolving global landscape, the principles of resilience and ingenuity are more pertinent than ever for HR professionals. By fostering a culture that values continuous learning, innovation, and bouncing back from setbacks, organisations can ensure they remain agile and robust, ready to face the challenges of tomorrow.

Empowering Tomorrow: Reframing the Global Female Employment Landscape

-Authored by Monalisa Nayak, Principal Correspondent, Ad Astra Consultants

While the call for women’s empowerment resonates across the globe, there is a need to scrutinise its impact at the grassroots level. Women are inherently capable leaders, and their recognition and involvement at all tiers is essential for fostering economic growth. This sentiment was well articulated by Ms. Jayanthi Yeswant Kumar, Co-Founder and Chairperson, Ad Astra Consultants, during a discussion on “The Pyramid Effect and Career Graph of Women” in an exclusive interview with DD National at the G20 Summit in Gandhinagar, Gujarat.

According to statistics from the UN’s World Population Prospects 2019 report, the gender ratio worldwide in 2021 was 101.68 males per 100 females, with women representing approximately 49.58% of the global population.

The International Labor Organization reports that 52% of women in India expressed a desire to contribute to the economy, either through paid employment or by balancing work and family responsibilities. However, startlingly, there has been a decline in female labour force participation over the past two decades – plummeting from 32% in 2005 to 19% in 2021.

In addition, it is important to shed light on the situation of the disabled demographic globally. According to a WHO report, an estimated 1.3 billion people are living with disabilities, constituting about 16% of the world’s population, or one in every six individuals. In India, this group makes up approximately 4.5% to 5% of the population.

As we turn our attention to the Asia Pacific region, we find that Singapore stands as the strongest economy. The data depicted in the graph elucidates the female employment-population ratio in various countries including Singapore, the United Kingdom, the United States, Malaysia, the UAE, the European Union, and India, among others.

In this self-realisation phase, it is crucial to decide how we can contribute to transforming the workplace for the above-mentioned class, uplifting them enabling substantial growth in the economy and building a brighter India.

India Inc takes giant leaps in empowering women

Companies from Ola, Ashok Leyland, Berger Paints to Bosch and JSW Paints, among other prominent companies, have employed all-women production lines or factories.

Organisations across sectors are now making extra efforts to increase women’s participation in the workforce as they say female participation creates a very productive work environment.

Recently, a few companies announced all-women production line to unlock their potential and create an inclusive work environment. Companies from Ola, Ashok Leyland, Berger Paints to Bosch and JSW Paints, among other prominent companies, have employed all-women production lines or factories.

In March this year, heavy commercial vehicle maker Ashok Leyland unveiled its all-women production line in Tamil Nadu. Ashok Leyland has been manufacturing commercial vehicles for the past 75 years.

“The industry had largely been a man’s space but as we look at the future, the way the mobility space and vehicles are getting transformed into alternate fuels powered vehicles, advanced telematics or on-board diagnostics, if you don’t have an inclusive workforce then we can’t be a company which is agile and getting itself ready for future,” says Raja Radhakrishnan, President & head of HR, Ashok Leyland.

The company has set up the all-women engine assembly line with 80 women employees at its Hosur plant. Its driver training institutes have also been training a large number of women in heavy commercial vehicle driving.

Everything in the production line is being done by women — right from maintenance to supply to the actual production itself. “This initiative has helped us break the mindset that this is man’s job and factory is man’s world. This led to having an inclusive workforce inside the factory which creates a very productive work environment across the organisation,” Radhakrishnan says, adding that women are very agile and in terms of numbers, they see a very good increase in productivity.

Bosch’s Oragadam plant, established in mid-2015 in Chennai, has a 100% women workforce and has been manufacturing a diverse range of over 60 power tools, including eight specialised types for artisans and tradespeople.

Suresh B R, Country head of human resources, Bosch Limited, says elevating awareness is a crucial step in our journey towards inclusivity.

JSW Paints operates the entire Wood Finishes line at its unit in Vasind, Maharashtra with women employees.

“This semi-automated line is managed completely by women employees from processing to packing the Beauteak range of wood finishes. JSW Paints is in the process of preparing its Colourant line at its other plant in Vijayanagara, Karnataka to be managed by women in the coming quarter,” says A S Sundaresan, Joint MD and CEO of JSW Paints.

JSW Paints also has women in frontline roles and customer relationship officers servicing retail market in Bengaluru, Hyderabad and Mumbai. Berger Paints, which commenced production in its Sandila plant in UP earlier this year, has one section — a colorant and Stainer unit – that is operated by women.

“The unit doesn’t require any great physical labor, and the company has recruited ITI-trained girls in the plant and they are doing a fabulous job there,” Berger Paints CEO Abhijit Roy had told TNIE in an earlier interaction.

Firms need to narrow diversity gap

From manufacturing to IT, across sectors companies take steps to narrow diversity gap, but women’s workforce participation is still low in the country. Country’s largest IT services company Tata Consultancy Services (TCS), which employs 35.7% of the women workforce, has been seeing higher attrition among its female employees.

In its annual report, TCS chief human resource officer Milind Lakkad said the higher attrition among women in FY23 is a setback to “our efforts to promote gender diversity but we are doubling down on it.”

Following the Covid-19 pandemic, particularly in the IT sector, women are exiting the workforce at a rate twice that of men. “In recent months, the attrition rate among female employees has surged to levels ranging from 30% to 40%, a stark contrast to the typical sector attrition rate of around 15%. Women in mid-career roles, typically aged between 30 and 40 years are mostly exhibiting this trend. This group faces the challenge of managing a disproportionate share of childcare and domestic responsibilities, leading them to make the difficult decision to leave their jobs,” says Anjali Raghuvanshi, Chief People Officer, Randstad India.

The insistence on returning to the office has proven to be counterproductive to employee retention efforts, resulting in higher turnover rates across all segments of the workforce. This shift is mainly detrimental to women, as they bear a significant burden of domestic caregiving responsibilities. Any alteration in work flexibility models tends to impact women more profoundly, she adds.

As per the latest Periodic Labour Force Survey (PLFS) reports, the estimated Labour Force Participation Rate (LFPR) on usual status for women of age 15 years and above in the country was 30.0%, 32.5% and 32.8% during 2019-20, 2020-21 and 2021-22, respectively.

Another important challenge in female workforce participation is pay parity. The wage disparity has been widening between men and women. Also, there are only a few women in mid-senior level positions in organisations.

“It is alarming that men in India hold a substantial 80-82% share of labour income, while women’s earnings remain much lower at 18-20%. Though there is a high pay parity in India, the situation is improving and notably, there has been an augmentation in economic opportunities for women, with an increased representation in roles such as legislators, senior officials, technical workers, and managers,” says Raghuvanshi.

Nirupama VG, founder and managing director, AdAstra Consultants, a women-owned full-suite recruitment solutions firm, quotes an IIM Ahmedabad study that indicates only 5% of top roles in Indian companies are occupied by women.

For a comprehensive decision-making process, boardroom diversity is paramount.

Also, women-led start-ups are very few in India. Nirupama says while 18% have at least one woman leader, as per Nasscom’s report, there’s ample room for growth.

“Presently, there are women-owned funds which are supporting women-owned businesses and that will go a long way to support such organisations,” she adds.

India Inc takes giant leaps in empowering women

Companies from Ola, Ashok Leyland, Berger Paints to Bosch and JSW Paints, among other prominent companies, have employed all-women production lines or factories.

Organisations across sectors are now making extra efforts to increase women’s participation in the workforce as they say female participation creates a very productive work environment.

Recently, a few companies announced all-women production line to unlock their potential and create an inclusive work environment. Companies from Ola, Ashok Leyland, Berger Paints to Bosch and JSW Paints, among other prominent companies, have employed all-women production lines or factories.

In March this year, heavy commercial vehicle maker Ashok Leyland unveiled its all-women production line in Tamil Nadu. Ashok Leyland has been manufacturing commercial vehicles for the past 75 years.

“The industry had largely been a man’s space but as we look at the future, the way the mobility space and vehicles are getting transformed into alternate fuels powered vehicles, advanced telematics or on-board diagnostics, if you don’t have an inclusive workforce then we can’t be a company which is agile and getting itself ready for future,” says Raja Radhakrishnan, President & head of HR, Ashok Leyland.

The company has set up the all-women engine assembly line with 80 women employees at its Hosur plant. Its driver training institutes have also been training a large number of women in heavy commercial vehicle driving.

Everything in the production line is being done by women — right from maintenance to supply to the actual production itself. “This initiative has helped us break the mindset that this is man’s job and factory is man’s world. This led to having an inclusive workforce inside the factory which creates a very productive work environment across the organisation,” Radhakrishnan says, adding that women are very agile and in terms of numbers, they see a very good increase in productivity.

Bosch’s Oragadam plant, established in mid-2015 in Chennai, has a 100% women workforce and has been manufacturing a diverse range of over 60 power tools, including eight specialised types for artisans and tradespeople.

Suresh B R, Country head of human resources, Bosch Limited, says elevating awareness is a crucial step in our journey towards inclusivity.

JSW Paints operates the entire Wood Finishes line at its unit in Vasind, Maharashtra with women employees.

“This semi-automated line is managed completely by women employees from processing to packing the Beauteak range of wood finishes. JSW Paints is in the process of preparing its Colourant line at its other plant in Vijayanagara, Karnataka to be managed by women in the coming quarter,” says A S Sundaresan, Joint MD and CEO of JSW Paints.

JSW Paints also has women in frontline roles and customer relationship officers servicing retail market in Bengaluru, Hyderabad and Mumbai. Berger Paints, which commenced production in its Sandila plant in UP earlier this year, has one section — a colorant and Stainer unit – that is operated by women.

“The unit doesn’t require any great physical labor, and the company has recruited ITI-trained girls in the plant and they are doing a fabulous job there,” Berger Paints CEO Abhijit Roy had told TNIE in an earlier interaction.

Firms need to narrow diversity gap

From manufacturing to IT, across sectors companies take steps to narrow diversity gap, but women’s workforce participation is still low in the country. Country’s largest IT services company Tata Consultancy Services (TCS), which employs 35.7% of the women workforce, has been seeing higher attrition among its female employees.

In its annual report, TCS chief human resource officer Milind Lakkad said the higher attrition among women in FY23 is a setback to “our efforts to promote gender diversity but we are doubling down on it.”

Following the Covid-19 pandemic, particularly in the IT sector, women are exiting the workforce at a rate twice that of men. “In recent months, the attrition rate among female employees has surged to levels ranging from 30% to 40%, a stark contrast to the typical sector attrition rate of around 15%. Women in mid-career roles, typically aged between 30 and 40 years are mostly exhibiting this trend. This group faces the challenge of managing a disproportionate share of childcare and domestic responsibilities, leading them to make the difficult decision to leave their jobs,” says Anjali Raghuvanshi, Chief People Officer, Randstad India.

The insistence on returning to the office has proven to be counterproductive to employee retention efforts, resulting in higher turnover rates across all segments of the workforce. This shift is mainly detrimental to women, as they bear a significant burden of domestic caregiving responsibilities. Any alteration in work flexibility models tends to impact women more profoundly, she adds.

As per the latest Periodic Labour Force Survey (PLFS) reports, the estimated Labour Force Participation Rate (LFPR) on usual status for women of age 15 years and above in the country was 30.0%, 32.5% and 32.8% during 2019-20, 2020-21 and 2021-22, respectively.

Another important challenge in female workforce participation is pay parity. The wage disparity has been widening between men and women. Also, there are only a few women in mid-senior level positions in organisations.

“It is alarming that men in India hold a substantial 80-82% share of labour income, while women’s earnings remain much lower at 18-20%. Though there is a high pay parity in India, the situation is improving and notably, there has been an augmentation in economic opportunities for women, with an increased representation in roles such as legislators, senior officials, technical workers, and managers,” says Raghuvanshi.

Nirupama VG, founder and managing director, AdAstra Consultants, a women-owned full-suite recruitment solutions firm, quotes an IIM Ahmedabad study that indicates only 5% of top roles in Indian companies are occupied by women.

For a comprehensive decision-making process, boardroom diversity is paramount.

Also, women-led start-ups are very few in India. Nirupama says while 18% have at least one woman leader, as per Nasscom’s report, there’s ample room for growth.

“Presently, there are women-owned funds which are supporting women-owned businesses and that will go a long way to support such organisations,” she adds.

श्रमिकों की कमी को पूरा करना और विश्व के लिए मैन्युफैक्चरिंग के भारत के सपने को साकार करना

2023 का डेटा इस मुद्दे की गंभीरता को उजागर करता है, यह दर्शाता है कि वर्तमान में भारत कारखानों, इंजीनियरिंग इकाइयों, विनिर्माण और संयोजन संयंत्रों, और इंफ्रास्ट्रक्चर परियोजनाओं सहित कई विषयों में श्रमिकों की मुख्य कमी का सामना कर रहा है.

हर साल, पूरे देश में, 12 मिलियन भारतीय युवाओं की उम्र रोजगार करने के योग्य होती है. असल में, 2030 तक, काम करने योग्य आयु वर्ग में, भारत में 1.04 बिलियन रोजगार वाले व्यक्तियों के होने का अनुमान है.

जबकि दुनिया के अन्य देश वृद्ध कार्यबल और श्रमिकों की कमी की चुनौतियों से जूझ रहे हैं, भारत विशिष्ट रूप से ऐसी स्थिति का अनुभव कर रहा है जहाँ कार्यबल आपूर्ति, मांग की तुलना में तेजी से बढ़ रही है, जिससे भारत इस प्रकार की प्रवृत्ति वाला एकमात्र देश बन गया है.

हालाँकि, इस विशाल जनसांख्यिकीय भाग के बावजूद, भारत कुशल और अकुशल श्रम की लगातार कमी से जूझ रहा है.

भारत में श्रमिकों की कमी

2023 का डेटा इस मुद्दे की गंभीरता को उजागर करता है, यह दर्शाता है कि वर्तमान में भारत कारखानों, इंजीनियरिंग इकाइयों, विनिर्माण और संयोजन संयंत्रों, और इंफ्रास्ट्रक्चर परियोजनाओं सहित कई विषयों में श्रमिकों की मुख्य कमी का सामना कर रहा है.

दरअसल, राष्ट्रीय स्किल विकास निगम (NSDC) की एक रिपोर्ट में अनुमान लगाया गया है कि 2022 में भारत की कुशल श्रम माँग लगभग 103 मिलियन श्रमिकों तक पहुँच जाएगी. हालाँकि, आपूर्ति में 29 मिलियन श्रमिकों की भारी कमी आई.

डिकोडिंग जॉब्स, 2022 में भारतीय उद्योग परिसंघ (CII) की एक रिपोर्ट में अनुमान लगाया गया था कि 2021 की तुलना में, 2022 में टियर -1 शहरों में लौटने वाले प्रवासियों की संख्या में कमी आएगी, जिसके परिणामस्वरूप मांग और आपूर्ति में 68% का महत्वपूर्ण अंतर होगा. रिपोर्ट में नॉन-टियर-1 शहरों में लौटने वाले प्रवासियों में 32% की कमी का भी अनुमान लगाया गया है. रिपोर्ट में प्रवेश स्तर, मध्य स्तर और ऊपरी स्तर के पदों सहित सभी स्तरों पर स्किल्ड प्रोफेशनल की नौकरियों में प्रतिभा की सीमित उपलब्धता पर भी जोर दिया गया है.

यह अंतर, भारत की वैश्विक विनिर्माण केंद्र और आर्थिक महाशक्ति बनने की परिकल्पना को प्राप्त करने में एक महत्वपूर्ण बाधा दिखाता है. इससे पहले कि यह देश के लिए मुसीबत बन जाए, इस द्वंद्व पर तुरंत ध्यान देने की आवश्यकता है.

भारत में श्रम की कमी के कारण और अर्थ:

आमतौर पर, श्रम शब्द उन लोगों के समूह के बारे में बताता है जिन्हें शारीरिक कार्य करने के लिए नियोजित किया जाता है. भारत में, इसमें कम शैक्षणिक योग्यता वाले समूह शामिल हो सकते हैं, जो दैनिक, साप्ताहिक या मासिक वेतन कमाते हैं, जिसमें गारंटीकृत नौकरी सुरक्षा, न्यूनतम वेतन रोजगार, पहचान दस्तावेज, क्रेडिट सुविधाएं, इंश्योरेंस कवरेज, उचित शिक्षा तक पहुंच आदि जैसी आवश्यक चीज़ों में बहुत कम या कोई लाभ नहीं है.

भारत में अंतरराज्यीय प्रवासियों की वार्षिक संख्या 4.5 प्रतिशत की वार्षिक वृद्धि दर के साथ, 5 से 6 मिलियन के बीच होने का अनुमान है. इस आंकड़े में प्रलेखित और गैर-दस्तावेजीकृत दोनों प्रकार के श्रमिक शामिल हैं, जो विभिन्न नियोक्ताओं और विविध उद्योगों के लिए काम करते हुए कई जगहों पर मौसमी प्रवास में लगे हुए हैं.

हालाँकि, यह उल्लेखित किया जाता है कि कोविड-19 महामारी के कारण लगाए गए लॉकडाउन की वजह से श्रमिक भारत के टियर 1 और टियर 2 शहरों को छोड़कर अपने गृहनगर लौट आए, लेकिन सच्चाई यह है कि यह समस्या वर्षों से बढ़ती जा रही है. इस परिदृश्य को करीब से देखने पर चीजें स्पष्ट हो जाएंगी.

प्रवासी कार्यबल: देश की श्रम शक्ति में बड़ी संख्या में भारत के भीतरी इलाकों से आए प्रवासी शामिल हैं. हालाँकि उनका प्राथमिक व्यवसाय कृषि हो सकता है, पर फसलों की कटाई के बीच के समय में जब उन्हें खेती से आय नहीं मिलती है, तो वो आजीविका कमाने के लिए शहरों की तरफ जाते हैं. इन लोगों की अधिक संख्या होने के बावजूद, ये लोग भारत के औपचारिक कार्यबल का हिस्सा नहीं हैं. और यहीं बड़ी समस्या है.

वेतन की समस्या: कम वेतन और आवास, स्वास्थ्य देखभाल, अवकाश और अन्य आवश्यक सुविधाओं का पूरा लाभ न मिलने के कारण, अन्य अनौपचारिक श्रमिकों के साथ-साथ प्रवासी भी शहरी क्षेत्रों में निम्न-गुणवत्ता वाली नौकरियों को स्वीकार नहीं करते हैं. इसके बजाय, वो स्थानीय कम-भुगतान वाले काम के अवसरों जैसे MGNREGS या अन्य आकस्मिक रोजगार विकल्पों में शामिल होना पसंद करते हैं, जो उनकी तत्काल जीवित रहने की जरूरतों को पूरा करते हैं. उन्होंने शहरी गरीबी के स्थान पर ग्रामीण गरीबी को चुना है.

शिक्षा प्रणाली: भारत में मौजूदा शिक्षा प्रणाली अक्सर व्यावहारिक स्किल से अधिक सैद्धांतिक ज्ञान पर जोर देती है. व्यावसायिक प्रशिक्षण कार्यक्रम पूर्ण रूप से विकसित नहीं हैं, जिसके कारण उद्योग की आवश्यकताओं और स्नातकों के पास मौजूद स्किल के बीच एक अनुपयुक्त संबंध है. यह कमी विनिर्माण क्षेत्र के लिए उपलब्ध टैलेंट पूल को सीमित करती है.

स्किल के विकास का अभाव: विनिर्माण उद्योग में विशिष्ट स्किल का एक विविध सेट आवश्यक है, जिसमें रोबोटिक्स, ऑटोमेशन, इंजीनियरिंग, प्रोग्रामिंग और विभिन्न अन्य तकनीकी डोमेन में विशेषज्ञता शामिल है. मशीनों और ऑटोमेशन पर बढ़ती निर्भरता के बावजूद, इन प्रौद्योगिकियों को संचालित करने और बनाए रखने में सक्षम श्रमिकों की मांग पूरी नहीं हुई है. दुर्भाग्य से, श्रमिकों को अपडेट रहने और आधुनिक समय की उभरती मांगों के अनुरूप ढलने के लिए आवश्यक प्रशिक्षण का लाभ नहीं मिलता है.

अन्य क्षेत्रों में प्रवासन: ई-कॉमर्स, IT, बिजनेस प्रोसेस आउटसोर्सिंग (BPO), सुरक्षा, खुदरा और हॉस्पिटैलिटी जैसे सेवा-उन्मुख उद्योगों ने व्यक्तियों को विनिर्माण और कम वेतन वाली फैक्ट्री नौकरियों से दूर कर दिया है. ये क्षेत्र अधिक आकर्षक पारिश्रमिक पैकेज और कथित नौकरी स्थिरता प्रदान करते हैं, जिससे विनिर्माण उद्योग के लिए कुशल और अकुशल श्रमिकों को आकर्षित करना चुनौतीपूर्ण हो जाता है.

धारणा और सामाजिक कलंक: विनिर्माण कार्य कभी-कभी निम्न सामाजिक स्थिति और छोटे काम से जुड़े होते हैं. यह धारणा, इस क्षेत्र में विकास और उन्नति की संभावनाओं के बारे में जागरूकता की कमी के साथ मिलकर, रोजगार योग्य व्यक्तियों को विनिर्माण क्षेत्र में करियर बनाने से रोकती है.

निवासी आबादी के कारण तनाव: अक्सर, किसी राज्य के भीतर घरेलू आबादी के कारण तनाव होता है, जिसके परिणामस्वरूप प्रवासी श्रमिकों का बड़े पैमाने पर अपने गृहनगर की सुरक्षा के लिए पलायन होता है.

श्रमिकों की कमी के व्यापक प्रभाव हो सकते हैं. यह घरेलू मांग को पूरा करने और अंतरराष्ट्रीय ऑर्डरों को पूरा करने की भारत की क्षमता में बाधा डाल सकता है, और वैश्विक विनिर्माण केंद्र के रूप में इसकी क्षमता को कमजोर कर सकता है. यह कमी तकनीकी प्रगति को भी सीमित कर सकती है, क्योंकि कुशल श्रमिक, इनोवेशन को प्रबल करने और उन्नत विनिर्माण तकनीकों को लागू करने के लिए महत्वपूर्ण हैं.

श्रम की कमी को कम करने के उपाय:

कुशल श्रम की कमी को दूर करने के लिए सरकारी निकायों, शैक्षणिक संस्थानों, और उद्योग साझेदारों के बीच सहयोग को शामिल करते हुए एक बहु-आयामी दृष्टिकोण की आवश्यकता है. यहां कुछ संभावित समाधान दिए गए हैं:

बेहतर इंसेंटिव: कारखानों और निर्माण स्थलों के भीतर काम करने की स्थिति को बढ़ाकर, साथ ही उच्च वेतन, आपातकालीन स्वास्थ्य सेवा, औद्योगिक समूहों के पास श्रमिकों के लिए कॉलोनी/होस्टल आदि जैसे लाभों को लागू करके, कंपनियां विनिर्माण क्षेत्र में श्रमिकों को आकर्षित करने और उन्हें रोके रखने की अपनी क्षमता बढ़ा सकती हैं.

पाठ्यक्रम में सुधार: शैक्षणिक संस्थानों को उद्योग-संगत प्रशिक्षण को शामिल करने के लिए अपने पाठ्यक्रम पर पुनर्विचार करना चाहिए. व्यावसायिक प्रशिक्षण कार्यक्रमों को मजबूत करना और प्रशिक्षुता को बढ़ावा देना सैद्धांतिक ज्ञान और व्यावहारिक स्किल के बीच के अंतर को कम कर सकता है.

सार्वजनिक-निजी भागीदारी: स्किल विकास पहल को बढ़ावा देने के लिए सरकार और निजी उद्यमों के बीच सहयोग. पाठ्यक्रम बनाने, प्रशिक्षण कार्यक्रम, और नौकरी पर प्रशिक्षण में उद्योग की भागीदारी रोजगार क्षमता को बढ़ा सकती है और व्यक्तिगत स्किल को उद्योग की आवश्यकताओं के साथ संरेखित कर सकती है.

जागरूकता और धारणा में बदलाव: विनिर्माण क्षेत्र में अवसरों और विकास संभावनाओं के बारे में छात्रों, अभिभावकों और समाज को शिक्षित करने के लिए पहल की जानी चाहिए. सेना में सैनिकों की भर्ती की मुहिम की तरह, सफलता की कहानियों को समझाने और उद्योग के पेशेवरों और छात्रों के बीच बातचीत के लिए मंच तैयार करने से धारणाओं को बदलने में मदद मिल सकती है.

अतिरिक्त स्किल और नई स्किल: लक्षित प्रशिक्षण कार्यक्रमों के माध्यम से, मौजूदा श्रमिकों को खुद को अतिरिक्त स्किल या नई स्किल सीखने के लिए प्रोत्साहित करने से कुशल श्रम की तत्काल मांग को काफी हद तक पूरा करने में मदद मिल सकती है. ऐसे कार्यक्रमों के लिए सरकारी और निजी क्षेत्र का समर्थन श्रमिकों को नई स्किल हासिल करने के लिए प्रोत्साहित कर सकता है.

कार्यबल में अधिक विविधता: इस क्षेत्र में प्रवेश के लिए, महिलाओं को प्रोत्साहित करने के लिए अधिक प्रयास करने की आवश्यकता है. निर्माता जो पद ऑफर करते हैं, उसके लिए उन्हें पात्रता मानदंडों की जांच करनी चाहिए और कार्यस्थल पर ऐसे बदलाव करने चाहिए जो विविधता को बढ़ावा देते हैं और रोजगार योग्य व्यक्तियों की एक बड़ी रेंज को नियुक्त करने को सक्षम करते हैं.

जबकि सरकार और उद्योग कल्याणकारी लाभों तक असंगठित श्रमिकों की पहुंच को आसान बनाने के लिए ई-श्रम पोर्टल, और नेशनल डेटाबेस ऑफ़ अनआर्गनाइज़्ड वर्कर्स (NDUW) जैसी पहल पर काम कर रहे हैं, फिर भी क्षेत्रों के अंतर को पूरा के लिए और भी बहुत कुछ करने की ज़रूरत है.

जर्मनी, ऑस्ट्रेलिया, जापान, गल्फ देशों और अन्य देश कम-कुशल भारतीय श्रमिकों का स्वागत कर रहे हैं. रोकथाम के लिए यह जरूरी है कि हम तेजी से कार्रवाई करें सुशिक्षित और कार्य कुशल व्यक्तियों के पलायन की तरह एक और पलायन, हमें मनुष्य और मशीन द्वारा बनाई जा सकने वाली हर चीज़ के लिए दुनिया की पसंदीदा जगह बनने के हमारे सपने से दूर कर देता है.

What made 50.5 million people quit their jobs in 2022???

The lyrics of Beyonce’s track, ‘I Quit My Job’ did not inspire the spate of 50.5 million resignations in America, in 2022, although there was quite a storm on Social Media about people handing in their papers, soon after the song was released. All the same, the song was quite indicative of the times. 2022 witnessed a historic wave of voluntary job departures, dubbed the Great Resignation, the Great Attrition, or the Big Quit. It affected various industries and sectors across the world. According to the U.S. Bureau of Labour Statistics, about 50.5 million people quit their jobs in 2022 in America alone, surpassing its record of 47.8 million in 2021. In the UK, between October and December 2022, there were as many as 1,161,000 job vacancies. A similar trend was noticed in France and Australia. In Japan, almost 900,000 jobs remained unfilled.

A McKinsey survey conducted across six countries in mid-2022 indicated that 40% of workers were dissatisfied with their jobs and were ready to quit. This percentage, in India, was over 66%.

The good news and the bad news

The heartening part of this en masse resignation was that not everyone who quit became jobless. More than half of those who quit their jobs found employment that suited their professional and personal goals better.

The worrisome part of this story is the emergence of a new phenomenon coined the Quiet Quitting.

Decoding the Great Resignation and the Quiet Quitting

To decode the terms, the Great Resignation refers to the global, voluntary, mass resignation of employees from the workforce.
Quiet Quitting, on the other hand, is about rejecting the premise that work must be the top-most priority in one’s life and one reduces one’s engagement to the bare minimum needed, not to get fired.

Factors that led to the present job churn

One of the major factors that triggered the Great Resignation was the COVID-19 pandemic, which disrupted normal functioning and forced many workers to rethink their priorities. It exposed the vulnerabilities and inequalities, especially for low-income and essential workers who faced higher risks of infection, inadequate protection and insufficient compensation. Many employees experienced wage cuts, increased work hours and responsibilities, job insecurities, personal loss, burnout, stress and anxiety during and after the pandemic.

Another factor was the availability of alternative opportunities and options for workers who wanted a change in career or lifestyle. Employees also began to choose non-traditional roles such as part-time work, consultancies, gig work or entrepreneurship over traditional employment. The pandemic accelerated the adoption of remote work, which expanded the geographic scope and flexibility of work for many employees. Remote work enabled them to save time and money on commuting. As a result, they found that they could balance their work and personal lives better.

In addition to the above, the high demand for labour in some sectors, such as technology, healthcare and e-tail, created more job openings and higher wages for workers who were willing to switch jobs. In short, employees wanted more than the usual compensation, better job advancement incentives and more soul from the spaces where they spent the most part of their day.

Impact on industry

The Great Resignation had significant impacts on various industries and sectors that faced labour shortages and challenges in retaining and attracting talent. Of these, the most affected industries were: Healthcare: The healthcare sector faced an extreme increase in demand due to COVID-19, but also suffered from a high turnover rate of 18% among healthcare workers who resigned due to pandemic stressors, low pay, and lack of resources. Customer Support: The customer support sector experienced a greater demand for online services due to the pandemic, but also struggled to retain workers who quit due to low wages, poor working conditions, and high stress levels. Education: The education sector faced not only an educator shortage but also general staffing issues in all departments of schools. Teachers and other school personnel quit due to unpredictable and sudden switches to remote learning, the high risk of coronavirus exposure, and a lack of resources. Travel: The travel industry saw many workers not return to their jobs after being furloughed or laid off during the pandemic. Airlines faced difficulties in hiring and training new staff, resulting in flight cancellations and delays8. Manufacturing: The manufacturing sector faced labour as well as supply chain disruptions caused by the pandemic. Some of the most affected manufacturing sectors were automakers, food processors, furniture makers, textile producers, and metal fabricators.

The Great Resignation and the Quiet Quitting have exposed the changing dynamics and expectations of the workforce in the post-pandemic era. It has thrown up significant challenges and opportunities for employers to adapt to present-day realities and demands of the labour market. The Great Resignation and Quiet Quitting demand that employers must understand why people quit their jobs and they ought to take adequate measures to mitigate such occurrences in the future.