Representative image (REUTERS/Amit Dave)
Around 100-120 million blue-collar workers have reportedly not received pay in the past month amid the nationwide lockdown to contain the spread of COVID-19.
As per a report by The Economic Times, such workers make up 70-80 percent of the industry.
Jobs are expected to decline sharply in the next few quarters unless demand resumes by the October-November festive season, experts told the paper.
Moneycontrol could not independently verify the story.
Most factories and offices have shuttered during the nationwide lockdown, which is currently scheduled to be lifted on May 4. Only essential items and services can be provided during this period.
Follow LIVE updates on the COVID-19 pandemic here
The sectors that have seen the maximum impact are travel, hospitality, tourism, aviation, retail, outdoor entertainment, food and beverages and the real estate sectors, staffing agency TeamLease told ET.
Sectors that will be impacted in the short-medium term are non-essential fast-moving consumer goods, poultry, dairy, shipping and construction, TeamLease added.
"The slowdown started around mid-March and only around 2-3 crore (20-30 million) people now have their employment intact," said Pravin Agarwala, the co-founder of Betterplace, told the paper.
Many companies have fired contract staff such as drivers, delivery staff, sales and business development employees with severance packages of one-three months, the report said.
According to the Centre for Monitoring Indian Economy (CMIE), the unemployment rate crossed 23 percent in the last week of March, after the lockdown began.Follow our full coverage here.