Festival season boosts temporary employment across industries, 700,000 new jobs expected

As the festival season approaches, industries in India are bracing for a significant increase in temporary employment, with an estimated 600,000 to 700,000 jobs likely to be created. Staffing firms such as Quess Corp, Randstad, Adecco, CIEL HR Services and TeamLease Services report that demand for temporary workers is growing by 15-20 percent year-on-year, driven by a rise in consumer spending, a recovery in the rural economy and a buoyant stock market, according to a report by The Economic Times.

E-commerce and logistics sectors are expected to see the largest increase in temporary employment, with a projected increase of 30-35 per cent. Demand is also strong in the consumer goods, banking, financial services and insurance (BFSI), retail and hospitality sectors, with early signs of festive demand already visible.

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The festival season, which runs from Raksha Bandhan on August 19 through Christmas and New Year, is a key period for businesses and can account for almost two-thirds of annual revenues in the consumer goods sector. August also sees more festivities because of the proximity and overlap of various holidays, including Independence Day on August 15, with the weekend.

E-commerce is likely to be a driver of job growth

The report further notes that this festival season is particularly crucial for businesses as consumer spending is limited during the summer and election season. However, with the festival season starting, businesses are gearing up for a surge in demand. Businesses can use this time to introduce new products and offers, while banks and non-banking financial companies (NBFCs) are likely to push for credit cards and loans. E-commerce, in particular, is expected to see a surge in sales, which will require additional manpower and, therefore, an increase in temporary employment.

The primary drivers of the growth in demand for contingent workers are consumer durables, retail, e-commerce, supply chain operations, tourism, hospitality and manufacturing.

Randstad India estimates that between 600,000 and 650,000 temporary jobs will be created between August-end and December, a 20 per cent increase over the previous year. The company itself expects demand for temporary workers to grow by 15-20 per cent in the coming months, with e-commerce, logistics and last-mile delivery sectors leading the growth. There will also be a strong demand for workers in customer service, logistics, customer relationship management, warehousing and BFSI, especially during the festive season when loan applications increase.

The number of temporary workers is expected to increase in second- and third-tier cities

This trend is not limited to large metropolitan cities; tier 2 and tier 3 cities are also seeing a significant increase in temporary employment. Rising urbanization, expansion of shopping malls and fast-food restaurants, and growth in consumer spending are driving demand in cities like Guwahati, Baroda, Jamnagar, Uluberia, Cuttack, and Sikkim. There is a high demand for positions such as pickers, packers, warehouse workers, delivery personnel, store demonstrators, and field sales workers.

Additionally, cities like Jaipur, Indore, Ahmedabad, Coimbatore, Lucknow, Vadodara, Surat, Bhubaneswar, Bhopal, Ludhiana, Chandigarh and Vizag have witnessed a 25-30 per cent increase in the number of temporary workers compared to the previous festival season.

TeamLease Services has also seen strong demand for positions such as delivery personnel, warehouse workers, customer service representatives, and packaging and fulfillment staff, particularly in the e-commerce sector, which is leading the charge for temporary hiring. This increase in temporary employment is also a clear reflection of the booming festival season, as businesses across the country ramp up operations to meet consumer demand.