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E-commerce: A blessing for the blue collared workforce.

Blue Collared Workforce For E-commerce Business

The e-commerce sector in India is on a growth trajectory and is projected to cross USD 103 billion by 2020.The direct impact of the e-commerce growth has been on the creation of employment opportunities across the value chain. E commerce has directly or indirectly generated employment in many industries like logistics, warehousing, IT/ ITeS etc.

Facts: E-commerce and allied ecosystem is expected to create 1.45 million employment opportunities by 2021, led primarily by more than 1 million jobs projected to be created by logistics and warehousing sector.

Out all total jobs, 0.8 million will be required for first mile and last mile connectivity as e-tail delivery staff and 0.25 million jobs will be created in e-commerce fulfillment/ warehousing functions (Source- Impact of E-commerce on Employment in India.)

From delivering food and appliances, to helping with home maintenance and carpentry work, the segment is growing exponentially, mostly driven by rapid urbanisation. Organizations are using staffing mix of part time, contractual, and flexi employees, to cater to the peak in operations. Increasing focus on cost and time efficiency has resulted in exploring varied employment models, e.g. contract, temporary, flexible etc. by the e-commerce, retail and the associated industries. In order to meet the seasonal demands organisations rely on staffing agencies to provide them with cost effective and job- ready associates.

In a recent report, it is estimated that out of more than 21 lakh jobs across select job verticals in 2019-20, the gig economy accounted for over 14 lakh jobs. The top job in blue collar segment was bagged by Delivery Staff followed by Drivers, Security and so on. These jobs provide a sustainable salary to the associates and help them shape up their career. Staffing agencies also play a major role in bridging the gap between the e-commerce employers and blue collar workforce. Staffing agencies provide the blue collar associate with ample opportunities and help them take up the job that fit their skill set.

While tier 1 cities create the largest job opportunities, a recent report states that Bengaluru is the largest job creator with close to 2,35,000 jobs, followed by Delhi at 2,25,000 jobs approx. Hyderabad and Chennai fast emerging as jobs markets with 54,052 and 93,222 blue collar jobs respectively. State wise, Maharashtra will lead the job creation, followed by Karnataka. (source: report published online)

Usually, the associate in the blue collar segment are under graduates and therefore, often find it extremely challenging to find a job that is sustainable. Staffing agencies provide a platform to these associates to kick start their career with limited skills. Below are some key advantage that e-commerce segment provides to the blue collared workforce.

  • Work Flexibility:Usually, the timings for blue collar jobs in e-commerce are flexible
  • Sustainable Wages: On an average, the last mile delivery associate makes 15,000 per month which with experience and skills increases. Salary range may vary city wise*
  • Security:The last few years have seen a sharp growth in the income of blue-collar workers making them customers for small loans and insurance.
  • Training & development:Many e-commerce companies to make it a point to train their ground force on various skills from time to time.

The job scenario seems positive for the blue-collar workforce. With jobs now available at the tap of an app on a smartphone, the impact of e-commerce has been huge on the lives of blue-collar workers.

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