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Saahil GOEL

CEO and Co-founder, Shiprocket

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How The Logistics Ecosystem Is Contributing To Increased Job Opportunities For The Blue-Collar Workforce Amid The Festive Season

With the Indian economy gradually beginning to recover from the devastating second wave of the pandemic, the total demand for goods and services is bound to continue rising.

E-commerce and logistics platforms, have witnessed a significant increase in demand during the past few months owing to the country’s economic recovery. Besides this, with the festive season in full swing, the overall consumer demand is expected to swell further. As logistics platforms cater to a massive influx of orders from across the country, the total overall hiring for blue-collar workers has increased up to 27% in the past three months, and the trend is likely to continue in the future as well.

To cater to the demand and end the festive season on a successful note with seamless operations, the logistics ecosystem is hiring a significant number of blue-collar workers, contributing to jobs amid the festive rush. Here’s how.

Technological improvements have driven the current surge in demand

It is easier to underline that with better technology such as smartphones and high-speed internet in place, the overall popularity of e-commerce has increased even in Tier-II cities. Small and medium sellers, too, are receiving an increasing number of order requests, resulting in the need for bolstered logistics infrastructure and workforce for efficient operations. Since people have access to the latest technology and infrastructure, it is easier to order online, track orders, and pay through digital modes. This increased demand has resulted from a consistent improvement in the nation's digital technology in the past few years.

There are different ranges of blue-collar jobs available

With the surge in demand for goods, e-commerce and logistics companies would need to hire a larger workforce to ensure that the overall supply chain is not disrupted. For delivery of a single product, several workers are involved in various departments such as packaging, warehousing, transportation, and delivery. Hence, these platforms will have to fill open positions as quickly as possible, leading to an uptick in blue-collar hiring.

Post-pandemic consumer behavior is contributing to the positive trend

Consumer shopping has not reduced; rather, it has shifted to the internet realm. Today, e-commerce is perhaps one of the most sought after shopping mediums, given the convenience and seamlessness it offers. Starting from a hassle-free shopping experience to ensuring zero-contact deliveries, post-pandemic consumer behavior has fuelled the e-commerce boom and underscored the significance of streamlined logistics operations. This has in turn resulted in the logistics ecosystem contributing to job opportunities for the blue-collar workforce in the country.

Limited migration during the second lockdown

Even though the country witnessed large-scale migration of workers from Tier I and II cities during the first lockdown, the trend was not the same in the case of the second one. Hence, the total availability of workers in the past few months has not reduced as much as it did in the first lockdown. Since the overall supply of blue-collar workers has not been affected, there is no dearth of supply and logistics platforms are making the most out of it.

Small and medium-sized sellers relying on logistics partners

Since small and medium-sized e-commerce companies do not have the luxury of having an integrated supply chain and logistics management systems like Amazon and Flipkart, these (small and medium-sized) enterprises have to rely on the services of logistics and delivery partners. These logistics and delivery partners provide last-mile delivery services and help in inventory management, warehousing, and reducing the overall carrying costs of such businesses. Hence, when the demand for such enterprises increases, these logistics and courier partners have to increase overall manpower availability. Such logistics partners drive a significant part of the increased demand for blue-collar workers.

Summing Up

With the Indian economy gradually beginning to recover from the devastating second wave of the pandemic, the total demand for goods and services is bound to continue rising. This economic recovery, coupled with the festive season, has resulted in a spurt in blue-collar jobs. Even though these jobs are temporary and include unskilled workers, it still makes a significant part of the employment generation process. In a gig economy, the overall role of these workers is crucial to ensure that goods and products reach the end-user in a given timeframe. Hence, the logistics ecosystem driven by stellar growth in the e-commerce logistics segment has increased the hiring of blue-collar workers in all parts of the country.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house



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