Workforce woes: India's Infra boom strains under blue-collar shortage

Machine Operators, Hardware Engineers, Architects, Labourers are the roles reporting the highest mismatch of application and availability of jobs among cities.

In various cities, there's a notable disparity between the demand for jobs in the infrastructure and manufacturing sectors and the number of candidates applying for these positions.

India’s infrastructure and manufacturing industries are facing an acute shortage of blue collar workforce as government and private organisations go heavy on investment on various projects.

This is across roles and regions, fuelled by mismatch of where the talent is located and where they are needed, followed by candidates preferring to work in their home state. Over the past six months, one of India’ largest blue collar jobs platform WorkIndia has observed a substantial surge in job postings within the Infrastructure and Manufacturing sectors, with a total of 35 lakh jobs made live.

There have been only 15.65 lakhs candidates actively applying for these positions, as per data shared exclusively with Moneycontrol.

ALSO READ | Moonlighting refuses to fade as opportunities to make extra bucks proliferate

In various cities, there's a notable disparity between the demand for jobs in the infrastructure and manufacturing sectors and the number of candidates applying for these positions. The data reveals that Bengaluru and Mumbai have the maximum job opportunities, followed by Delhi and Hyderabad. However, Delhi has the highest percentage of candidates seeking jobs.

For instance, Delhi has the highest number of applicants for Machine Operators. However, Bengaluru, Chennai, and Pune stand out as cities with significant job opportunities for them. And workers, on average 83 percent in the 18-30 age group, are not willing to migrate.

Delhi here comprises the National Capital Regions (NCR) and some nearby cities. Migrants from UP, Haryana and Rajasthan submit their registration from Delhi, a nearby centre to their home state.

“The increased government spending on infrastructure projects has amplified the need for workers in the sector. Secondly, the manufacturing Purchasing Managers' Index (PMI) consistently reflects high levels, indicating a surge in projects and production activities,” said Nilesh Dungarwal, co-founder and CEO of WorkIndia.

ALSO READ | 5X jump in Paytm employees looking for jobs, ‘safe pastures’

Further, experts say, organised retail, and quick-service restaurant or QSRs have created more employment avenues for the youth in urban areas, who are opting to work in these sectors which have relatively better working conditions compared to blue-collar work environments.

Post-pandemic blues

Companies looking for blue collar workers say the aftereffects of the Covid-19 pandemic are still looming large with workers avoiding migration, especially to locations that are far away from their home state or city.

This is followed by an increasing skill gap in certain roles such as Engineering which are undergoing tech-led transformation.

According to Manikandan Ramachandran, COO of TVS Industrial and Logistics Parks, there exists a 30 percent demand-supply gap in the availability of blue-collar workers within the industry. This gap, he said, is primarily a consequence of interstate and reverse migration post the pandemic, influenced by factors such as higher living costs, lengthy commutes, and challenges in remitting earnings, hindering the return of workers to their workplaces.

ALSO READ | Machine learning dominates AI job market; high demand for mid, senior-level experts

“Additionally, skill gaps persist in roles like managers, electrical engineers, etc., due to the accelerated digitisation of the sector, further complicating the workforce challenge,” Ramachandran added.

Similarly, Noida-based Addverb Technologies, which builds robotics and automation solutions for factories and warehouses, saw many blue collar workers choosing to stay within the vicinity of their hometowns.

“UP, one of largest suppliers of blue collars, is building India’s largest network of expressways, the highest number of international airports, and with a focus on developing infrastructure in Ayodhya, many workers have chosen to stay back as they are getting better opportunities nearer to their home. We can see this reflected in labour shortages in areas like Tirupur, Tamil Nadu,” said Satish Shukla, Co-founder of Addverb.

He added that the Indian workforce seems to be in a ‘K-Shape’ recovery, where tech and management jobs appear to be declining but the demand for blue-collar workforce is on the rise.

Roles that are in short-supply

Machine Operators, Hardware Engineers, Architects, Labourers are the roles reporting the highest mismatch of application and availability of jobs among cities.

ALSO READ | CXO hiring declines by 25%, female employee salaries surge: Report

Delhi emerges as the leading city with 27.88 percent of candidates actively applying for jobs. Mumbai closely follows with a 24.61 percent share. Pune and Bengaluru maintain notable positions with 13.04 percent and 12.07 percent, respectively.

Despite the prevailing challenges in the industry, TVS ILP's strategy is to focus on the Tier 2 and 3 cities where Ramachandran thinks the availability of workforce is better in comparison to Tier 1 cities. As a result, the company has been able to generate local employment and meet blue-collar workforce demands for its warehouses.

“To address the evolving skills demands, TVS ILP has proactively invested in initiatives like site web talk , daily toolbox talk, employee awareness programmes, worker recreational activity, health check-up for workers and so on. This approach aligns with our commitment to support local communities and foster a sustainable work environment,” he said.

Addverb’s Shukla feels the youth are avoiding such jobs because of the ‘3D’ problem – jobs are typically ‘Dull, Dirty, and Dangerous’.

He said using robots and automation systems ensures a better working environment, creating a demand for highly skilled people, which in turn pays better as well. Hence, Addverb is training talent on using these automation systems through active apprenticeships and internships, and have seen these people being employed by many of the customers as well.