![opoyicentral](https://opoyi.com/wp-content/themes/opoyitheme/images/opoyi_6k77dlSYd.jpg)
Several sectors may face a worsening labour shortage: Report
- The current labour shortfall across industries is 15-25%
- Over half of the 850 employers polled across 21 industries expect to hire blue-collar workers in the next three months
- To retain labour, companies such as Thermax and JSW Steel are implementing innovative schemes
A blue-collar labour shortage might soon create obstacles for several business sectors that are already grappling with a deficit due to a rapid rise in coronavirus cases and additional restrictions in states, according to job market experts and economists.
Also Read| US Stock Market: DJIA, S&P500, Nasdaq and Russell ended higher on Tuesday
A survey conducted by staffing and human resource agency Teamlease Services found over half of the 850 employers polled across 21 industries expect to hire blue-collar workers in the next three months. However, some industries, including manufacturing, engineering, construction, real estate, healthcare and pharmaceuticals, are finding it difficult to locate qualified workers. The current labour shortfall across industries is 15-25%, and the gap may widen in the next few months as the latest Covid-19 wave sweeps across the country.
Also Read| Tata Teleservices approves conversion of interest on AGR dues into equity
Blue-collar labour refers to workers who engage in hard manual labour, typically agriculture, manufacturing, construction, mining or maintenance. If the reference to a blue-collar job does not point to these types of work, it might imply another physically exhausting task. The environment may be outdoors or require interaction with heavy machinery or animals. The blue-collar worker may be skilled or unskilled.
Also Read| Stocks that should be on your watchlist on Wednesday, January 12, 2022
“Mobilisation of labour is likely to be a challenge in the months ahead. Many migrants were already wary of returning, causing the current shortage, and the exponential rise in infections across major cities will further dent their confidence,” said Amit Vadera, assistant vice-president, Teamlease Services. Even sectors such as fast-moving consumer goods, e-commerce and logistics, where the supply of labour is marginally (3-4%) higher than demand, are also likely to feel the pressure as the number of infections rise and more interstate restrictions kick in, said Vadera.
Also Read| Trending Stocks: TTML, Vodafone Idea, Delta Corp, DLF and others in news today
Some senior corporate executives and economists, on the other hand, remain cautiously hopeful, believing that organisations are more prepared this time than they were in the previous two waves, and many are using a series of steps to retain their current staff.
Also Read| Trade Setup: Top 15 things to know before market opens on January 12, 2022
“We are better prepared and ‘able’ as government, businesses and individuals this time around. But given the sheer size of the economy and the population, thousands, especially in the informal sector, will be impacted for some time,” said Sachchidanand Shukla, chief economist at the Mahindra Group.
Also Read| Vodafone Idea share tanks over 18% on conversion of AGR dues into equity
To retain labour, companies such as Thermax, JSW Steel and Forbes Marshall are implementing innovative schemes such as attendance allowance (an extra cash incentive above and beyond salary for regular attendance), mobilization cost (including travel cost), linking wages to production-linked incentives, paying higher than minimum wages, providing health coverage and employment insurance.
Related Articles
-
5 biggest controversies related to Donald Trump
-
Who is Michael Kidd-Gilchrist? Former NBA star sues insurance firm for $40M over alleged COVID-19-related heart disease coverage denial
-
What is Marburg virus? Conspiracy theory claims Emergency Alert System test will activate virus in Covid-vaccinated people
ADVERTISEMENT