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Fall in employment increases demand for flexi staff

The demand for flexi staff has increased due to a fall in employment in India.

Employment rates have fallen slightly for both men and women, according to a recent study conducted by the National Sample Survey Organization (NSSO), but it has been somewhat sharper for women from 29% in fiscal year 2005 to just around 22% in fiscal year 2012. This ambiguity in the Indian labour market has increased the demand for flexi staffing industry.

While flexible staffing is the new age employment for India's economy, out of two crore flexi-staff in India, only 13 lakh are being covered under the organized sector involving a tripartite deal among the staffing firm, employer and the flexi employee.

According to Indian Staffing Federation (ISF), an apex body of flexi staffing industry in India comprising of about 35 members, representing over four lakh temporary staff, it has generated employment of over 5 million youth in the last 10 years.

“In a country which creates a million jobs a year as against the 12 million which is joining the workforce every year, it seems like an incredible achievement for the flexi-staffing industry of having contributed to 5 million employment for our youth in the last 10 years,'' said Rituparna Chakraborty, vice president, ISF.

“The industry no longer functions solely in the capacity of replacing absentee workers with temporary ones but has emerged as a strategic partner for its corporate India by providing the environment, the reliability and knowledge of the regulatory framework, the scalability and flexibility to bring jobs to India aiding the process of their growth and expansion,'' said Chakraborty.

Is the increase in flexible staffing another sign that India’s workers are in danger of losing out on employment rights and benefits? Let us know your thoughts.


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