A report released by the Indian Staffing Federation (ISF) has found over seven million jobs have been formalised between 2015-2018 due to reforms and initiatives.
Speaking to The Hindu BusinessLine, Rituparna Chakraborty, president, ISF said: “In the last three years there have been amendments in various policies, such as the payment of wages act and EPF reform, so we wanted to understand how it has impacted formal jobs. We mapped all of this and realised that about 70 lakh jobs have been created in the formal sector over the last three years on account of these policy changes.”
The report: Impact of key reforms on job formalisation and flexi-staffing’ mentioned that 1.2 million workers have been added to the flexi-workforce since 2015 and a further 1.53 million are to be added over the next three years. It also points out that the government’s current agenda of job creation can be achieved by boosting the aggregate effective demand in the economy through formalisation, industrialisation, urbanisation, financialisation and skilling.
The report further mentioned that India will have a 6.1 million flexi-workforce by 2021. Sectors such as logistics, banking, financial services and insurance (BFSI), IT/ ITeS, retail and government would be the top five sectors, employing over 55 per cent of the total flexi-workforce by 2021.
“The report establishes flexi-staffing as a key job creation engine. The acceleration in momentum towards formal employment witnessed in the past three years clearly means the reforms are impacting,” said R.P. Yadav, vice-president, ISF.