E-commerce industry anticipated to create 7,00,000 Gig jobs by the end of H2 2023 says TeamLease
- E-commerce and Logistics segments expected to drive major hiring
- 25% up from H2 2022 for roles like Warehouse Operations, Last-Mile Delivery Personnel and Call Center Operators
- Tier-2 and Tier-3 cities have a higher increase in open positions as against Tier-1 cities compared to last year
With the approach of the festive season, Indian E-Commerce companies are gearing up to fulfil consumer demands during the annual shopping frenzy. This surge in shopping activity is projected to generate almost 700,000 gig jobs in the second half of 2023. With July opening up the market with shopping festivals by various e-commerce players, the sector currently has around 200,000 open positions for temp workers primarily in the last mile delivery space and warehouse operations jobs. This year’s festive hiring is anticipated to witness a remarkable 25% increase in gig jobs compared to the same period last year, reflecting the sector’s optimistic outlook and aspirations to boost positive sentiments.
The demand for gig workers during the festive season has been consistently rising, not only in tier-1 cities like Bengaluru, Delhi, Mumbai, Hyderabad, and Chennai but also in tier-2 and tier-3 cities like Vadodara, Pune, Coimbatore. In both metropolitan areas as well as tier-2 and tier-3, there is a predominant need for roles such Warehouse Operations, Last-Mile Delivery Personnel and Call Center Operators, however, the proportion of demand is higher in the tier-2 and tier-3 cities versus in tier-1 as against last year. This is primarily owing to the recovery in rural demand expected in the back of easing inflationary pressures.
Despite the challenges posed by the macro-economic situations, the surge in employment opportunities presents a positive outlook for gig workers all across the country. Businesses are actively recruiting temporary workers to ensure best customer experience during the festive period. As a result, the job market in these cities is thriving, providing a much-needed boost to the local economies.
Speaking about the increasing demand, Balasubramanian A, Vice President and Business Head, Teamlease Services, said, “Over the last 5 years, we have seen an impressive 20% year-on-year increase in the demand for gig workers, and this upward trend is expected to persist for the next 2-3 years, especially in the thriving e-commerce category. With July opening up the festive season hiring, the e-commerce sector alone has 200,000 open positions at present, which will eventually increase and reach about 700,000 by December. According to industry reports, it is anticipated that India’s gig workforce will reach 2.35 crore by 2029-30, which clearly indicates the growing demand for this talent pool. The hiring of gig workers offers a multitude of advantages, allowing corporates to optimize spending, enhance scalability, and embrace agility. Moreover, it empowers the Indian workforce to earn on their own terms, providing a great sense of flexibility and comfort. As we move forward, we look forward to a future where the gig economy plays a pivotal role, and we are committed to supporting this dynamic workforce for the e-commerce sector in their journey towards success.
This year’s festive season unveils a dynamic landscape characterized by opportunities and disparities. The statistics show a remarkable 69% surge in gig workers earning more than ₹150,000, indicating a thriving high-income segment. Additionally, there is a significant 62% increase in gig workers earning between ₹85,000 and ₹150,000, reflecting a prospering middle-income bracket. However, it is essential to acknowledge the challenges faced by the lower income bracket, as evidenced by the slower 26% increase in salary among gig workers earning less than ₹20,000. On a more positive note, the 20% increase in salary for workers earning between ₹20,000 and ₹40,000 points towards a promising middle-income group.
“To meet the ever evolving demands of the festive period, e-commerce companies seek highly skilled and adaptable gig workers and temporary employees. The ideal candidates have excellent time management skills and a background in customer service, ranging from delivery personnel with valid driver’s licenses and good driving records to warehouse and operational support staff with physical endurance. These individuals, who, when required can work overtime, weekends, and holidays, play a critical role in ensuring smooth operations and exceptional customer experiences during this critical time of year.” further he added.
Furthermore, the data show that the surge in gig/temporary workforce hiring is not limited to the e-commerce sector. Several other industries are also ramping up their recruitment efforts to meet the festive season’s demands. Retail and logistics are among the prominent industries that are expanding their workforce to meet the increased consumer activity during this festive season.
