About 1 million of the total 13.9 million total logistics jobs in 2022 will be in e-commerce retail logistics.
The logistics sector will create 3 million new jobs in four years. A report by human resources firm TeamLease Services said 1 million of the total 13.9 million total logistics jobs in 2022 will be engaged in e-commerce retail logistics.
Currently, road freight accounts for the maximum number of jobs in the logistics sector. It accounts for 7.99 million jobs in 2017 and will go up to 9.88 jobs by 2022. The logistics industry in India is currently worth Rs 14.19 lakh crore and employs 10.9 million people.
Mumbai alone will create 7,50,000 jobs as per the report. From a sub sector perspective, the maximum number of jobs in the Mumbai region will be created by road freight followed by the air freight sector.
In India, road freight sector will create 1.8 million incremental jobs and the air freight sector will create 400,000 incremental jobs over the next four years, said the report. Waterways is expected to create 450,000 additional jobs in this period.
Economic growth, evolving regulation and infrastructure investment are some of the key drivers of employment opportunities in the road and the air freight sub sector.
Rituparna Chakraborty, co-founder & executive vice-president, TeamLease Services, said, “The logistics sector is undergoing a tectonic shift. Newer projects across the country will lead to new jobs in the logistics space. But skill gap and availability of people is a real challenge."
She added that even for basic jobs like truck drivers, there is a gap between the demand and supply.
According to the report, an important growth driver is the infrastructure status accorded to the logistics sector in 2017. This will improve access to low cost and long term credit, it said. Further, it said Goods and Services Tax (GST) implementation has led to formalisation of the sector and bring in operational efficiency.
The courier services sub-sector itself is expected to create 60,000 new jobs over the next few years, said TeamLease. It added that improved end-user technology, dynamic market, multi-mode transportation model and aggressive players have been growth drivers.
In terms of employer’s expectations, acquaintance with logistics automation systems, technical knowhow and time management are few of the skills that are in demand.According to the survey, Mumbai region alone has a dearth of 243,000 people indicating ample opportunities for talent across the eight sub sectors. The total skill gap across the logistics sector in eight primary logistics hubs is 950,000.