Effect of Corona: Shortage of employees may soon become a challenge, effect will be seen in 21 sectors

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In the midst of the third wave of Corona, the challenge of shortage of workers in the country may come to the fore. Such information has come to the fore in a survey conducted in 21 sectors.

There may be a shortage of blue-collar work force

Job market experts say the lack of a blue-collar workforce may soon become a challenge for various sectors. Already, the industry is facing a shortage of staff amid the rapid increase in the number of corona cases and restrictions imposed in the states. Nearly half of 850 companies across 21 sectors said they plan to hire blue-collar manpower in the next three months, according to a survey by staffing resource firm TeamLease Services.

Many sectors are going through shortage of employees

However, several sectors, especially manufacturing, engineering, construction, real estate, healthcare and pharmaceuticals, are facing labor shortages. According to TeamLease and Industry estimates, the current labor shortage across industries ranges from 15 to 25%. This gap may widen in the next few months, as the latest wave of Kovid has spread in the country.

Labor mobilization a challenging task

Amit Vadera, Assistant Vice President, TeamLease Services, said that mobilizing labor in the coming months could be a challenging task. Migrant laborers are already sitting ready to return to their homes. Due to this there is a shortage of workers at present. Due to the rapid spread of infection in big cities, this crisis may deepen.

The restrictions could make matters worse

Vadera said that even in sectors such as fast moving consumer goods (FMCG), e-commerce and logistics, where labor supply is marginally higher than demand, the number of infections and inter-state restrictions may worsen. However, some top company executives and economists remain optimistic.

He says that all the people and governments are better prepared this time than in the last two waves and many are adopting various measures to retain the existing manpower.

Companies are getting better prepared

Sachchidanand Shukla, Chief Economist, Mahindra Group said, “We are better prepared and capable this time as governments, businesses and individuals. But given the sheer size of the economy and population, thousands of sectors—especially the informal sector—will still have an impact for some time. Moreover, the kind of support and jobs available in cities are not available in villages and as a result the workers will have to return to the cities again.

Many companies are making solutions

Shukla said that we have also seen in our group that locally available alternatives (laborers) do not prove to be effective in the long run. Several companies, including Thermax, JSW Steel and Forbes Marshall, include wages to retain labor, health coverage and employment insurance, in addition to attendance allowance (extra cash provided in addition to daily commuting salary), mobilization costs, wages linked to production New schemes like linking with incentives are being started.

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