As India gears up for the festive season and a surge in consumer demand, BetterPlace's Festive Season Insights predict the creation of over 2.5 million frontline jobs, marking a 72% increase compared to last year's festivities in FY23.
Pravin Agarwala, the Co-founder and Group CEO of BetterPlace, highlighted the shifting dynamics of India's workforce, stating, "The problem of the Indian workforce is not that of a demand-supply gap anymore, but that of a skill-demand gap. The demand for frontline workers continues to rise, primarily driven by the need for semi-skilled labor. However, the supply of workers is struggling to keep up with this demand, and this gap becomes even more apparent during the festive season."
Key insights from the report include:
2.5 million jobs expected: More than 2.5 million jobs are projected to be created during the festive months of October, November, and December 2023, marking a 72% increase compared to the previous year. While there was a dip in job vacancies during the FY23 festive season, this year's surge in demand, driven by larger-scale sales events, is set to boost job creation.
Shift in consumer spending: The overall demand for workers during the festive season in FY22 was largely influenced by the post-pandemic economic boom, which seemed to have subsided in FY23. However, the rise in demand for frontline workers this fiscal year points to a potential normalisation of consumer spending patterns.
Salaries on the rise: Although the demand decreased in FY23, the average salaries across industries have risen marginally by 3.25% compared to the FY22 festive season. The Infrastructure and Facility Management & Information Technology (IFM&IT) sector witnessed a substantial 30% salary increase, while Retail & Quick Service Restaurants (QSR) recorded a 7% hike. This can be attributed to the growing demand for customer care services and a shift towards offline shopping. Conversely, salaries in the e-commerce and Logistics & Mobility sectors decreased by 8% and 16.7%, respectively, likely due to the oversupply of workers in these areas during the festive season.
Pre-festive season surge: Analysis of the FY23 festive season trends reveals that demand for frontline workers spikes one quarter before the festive season quarter, with demand dropping by 37% between Q2 and Q3 of FY23. Enterprises anticipate the surge in demand during the festive season and tend to meet their hiring needs well in advance.
Attrition dynamics: Attrition rates are at their lowest during the quarter preceding the festive season. However, during the festive season, attrition rates match those of the other quarters of the year. The increase in attrition during the festive season can be attributed to the higher-paying job opportunities available, enticing workers to switch jobs.
Sector-specific attrition: During the festive season, the Logistics & Mobility and Manufacturing sectors experience the highest attrition rates due to lower salaries. In contrast, sectors like BFSI and IFM&IT offer high salaries during the festive season, resulting in reduced attrition rates, down by 23% and 58%, respectively.
