GST To add 2.5 Lakh Temporary Jobs Annually
Currently, India stands at fourth place after the US, China and Japan with 21 lakh flexi workers. Once it reaches 29 lakh, India will become the third largest in deploying temp workers
Photo Credit : Reuters
Planning to take up a project rather than a permanent job? You might get many offers soon.
Good news is that the Goods and Service Tax, effective from today, is set to boost the creation of temporary jobs in the economy apart from creating regular job vacancies. According to the country’s apex temp staffing lobby, Indian Staffing Federation, GST could increase the creation of temp jobs by 10 percent to 13 percent annually.
This spells into creation of over 2.50 lakh jobs annually in addition to the present demand of around 3.15 lakh flexi job workers every year.
Currently, India stands at fourth place after the US, China and Japan with 2.1 million flexi workers. Once it reaches 2.9 million, India will become No. 3. “With GST coming, hiring temp workers will make more business sense. GST will boost the ability to seek input credit through the variable expenses which will encourage companies to hire workers on flexi basis,” said Rituparna Chakraborty, president of ISF. ISF, which was founded in 2011 by leading staffing companies, said that flexi staffing is becoming the job creation engine and is expected to employ 2.9 million flexi staff by 2018. Then, flexi staffers would constitute about 10% of the organised workforce.
With a huge workforce out there to get a few available jobs, flexi staffing or temporary hiring is gaining popularity in India. Moreover, companies are also changing their business models where they deploy more the flexi staffers.
"With several companies, especially startups, seeing rapid growth, and the need to augment their workforces quickly, the demand for flexi staffing will see a continued rise in the near future," Chakraborty said who is also co-founder of staffing firm, TeamLease Services.
As per the headhunters community, GST is pegged as country's largest labour reform. GST could also result in increased employment, promotion of exports and consequently a significant boost to overall economic growth and factors of production -land labor and capital. "Hiring in many sectors is set to receive a big boost during the GST regime since many unorganized sectors will now be streamlined and therefore there will a need to fill the vacant positions which earlier were being ignored or not counted necessary,” said AG Rao, group managing director, ManpowerGroup India.