Karnataka to add 6.7 lakh blue-collar jobs

Karnataka to add 6.7 lakh blue-collar jobs

Out of the total jobs generated in the state, close to two-thirds has trickled in the delivery segment

Workers at a factory in Peenya. Credit: DH File Photo

Karnataka is likely to generate about 6.7 lakh blue-collar jobs by the end of 2021. Of this, around 350,000 jobs have already been created, according to Betterplace, India’s largest tech platform for blue-collar workforce management.

The latest report released by Betterplace reveals that the trend is based on data from the first six months of 2021 and hiring trends/projections across more than 1,500 customers, 10 million employees and close to 20,000 pin codes across the county.

The blue-collar industry has seen close to $100 million of funding, of which a whopping 90-95% has been invested in Bengaluru alone in the last 12 months, says Pravin Agarwala, CEO, Betterplace. Even as the economy is reeling & recovering post the deadly second wave of Covid, the report observes that technological advancements, a simplified labour code & a rise of the gig economy were the major demand drivers.

Karnataka Skill & Entrepreneurship Task Force’s co-convenor Madan Padaki sounded optimistic about the job creation. “I have seen several reports projecting the number of blue-collar jobs to be much higher & this is only bound to grow northwards”, he said.

Also read: Employment in 9 non-farm sectors at 3.08 crore in Apr-Jun, up by 29% from 2013-14

He further added that supply-side issues are dominant compared to demand-side constraints i.e., the key challenge is to retain the workforce by creating a career path for the workforce entering the job market.

Out of the total jobs generated in the state, close to two-thirds has trickled in the delivery segment followed by drivers (13%), facility (10%) & security (4%) sub-divisions. However, approximately 30,000 people have moved out of the state in search of livelihoods.

Nilabh Kapoor, Business Head of OLX People said, “Our estimate is that approximately 7 lakh blue-collar jobs would be created in the state. However, we see demand variability and job security as the key challenges in the creation of these jobs.”

Padaki mentioned about the challenges faced by the sector. “The task force is also devising mechanisms for youngsters to retain, upskill and create a vertical career path for them”. 

A trend that can largely be attributed to the pandemic, as observed in the report, is that inter-state migration has reduced and a permanent shift in migration pattern has been witnessed for driving and delivery segments. However, migration is expected to pick up further once the situation improves even more.

“Bengaluru leads the pack as far as blue-collar job demand is concerned with an appetite for faster adoption to changes. And if we partner with the state government, an additional 2 lakh jobs can be created within the next 6 months," said Agarwala.

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