Manufacturing Temp Workforce Sees 5.6% Annual Growth in Pay Reflecting Industry s Rising Demand for Skilled Talent Finds Teamlease Staffing Report

●       Achieving a $1 trillion manufacturing sector by 2025-26 will depend on addressing workforce dynamics, supported by government initiatives, technological advancements, and an evolving workforce landscape.

●       Males dominate technical roles with higher representation in diplomas (13.5% vs. 5.7%) and ITIs (11.5%, none for females), highlighting the need for targeted efforts to promote gender parity.

●       Over 43% of temporary workers leave within a year, with 8.7% exiting in the first three months.

●       More than half of the temporary workforce has a tenure of less than a year

XX, December XX, 2024: TeamLease Services, India’s leading staffing solutions company revolutionizing employment and workforce dynamics, has released its latest report, "A Staffing Perspective on Manufacturing." The report provides an extensive analysis of the manufacturing sector’s contractual workforce, revealing key trends, challenges, and opportunities.

With the manufacturing sector's rapid growth and tech-driven advancements, the report highlights the need for large-scale upskilling, and reskilling are essential to bridge the widening skill gap. Notably, 43.6% of the manufacturing workforce falls within the 28-37 age group, a demographic well-suited to embrace technological changes. However, there is an urgent need to enhance their technical and analytical capabilities to fully leverage these advancements.

Additionally, the workforce shows diversity in educational backgrounds, with nearly half holding graduate degrees. Male and female representation at the graduation level stands at 48.5% and 46.4%, respectively. Maharashtra (17.2%) and Tamil Nadu (14.6%) lead in contractual workforce contributions, followed by Uttar Pradesh (9.6%) and Karnataka (9.4%), reflecting their industrial strength. Smaller contributions come from Delhi (3.6%), Rajasthan (3.5%), and Bihar (3.4%), while states like West Bengal, Andhra Pradesh, Telangana, and Kerala collectively account for 24%.

Despite the impressive progress, the report also lists the challenges. One of the most notable findings is the gender disparity within the temporary workforce. A significant 89.5% of employees in temporary roles are male, highlighting a significant underrepresentation of women. Females in the workforce, however, demonstrate higher representation in postgraduate qualifications (24.3% compared to 10.5% of males).

On a positive note, compensation in the manufacturing sector has grown at a 5.6% CAGR from FY21 to FY24, driven by inflation, rising demand for skilled workers, and competitive pay strategies to retain talent. However, the gender pay gap persists, with males in temporary roles earning higher average CTCs than females. The report highlights the need for equitable pay practices as well as other retention practices.

Kartik Narayan, CEO-Staffing, TeamLease, said, “The report highlights how industries like automotive, chemical, textile, electronics, and machinery are driving manufacturing growth, while Industry 4.0 technologies such as IoT, AI, and automation are transforming operations through smart factories. As the manufacturing sector evolves, the 5.6% annual pay growth reflects the rising value of skilled talent. To sustain this momentum, addressing retention challenges, promoting diversity in technical roles, and facilitating adaptable work environments will be key to building a workforce that is ready for the next phase of growth.”

The report by TeamLease Services also highlights that demand for skilled roles continues to grow. Critical blue-collar and grey-collar positions like assembly line workers, welders, and CNC operators are in high demand, alongside white-collar roles such as production supervisors, quality control inspectors, and supply chain managers.

About TeamLease Services Ltd.: TeamLease Services is one of India’s leading people supply chain companies offering a range of solutions to 3900+ employers for their hiring, productivity, and scale challenges. Listed on the NSE & BSE, TeamLease has hired 23 lakh+ people over the last 23 years. One of India’s fastest-growing employers, TeamLease also operates TeamLease Skill University (TLSU), India’s first vocational skills university and the first NAAC Accredited Skill University that offers employment-oriented multi-level programs. The Company offers solutions to large, medium, and small clients across the 3Es of Employment (around 3.2 lakh associates/trainees), Employability (over 7.5 lakh students), and E-workforce (over 1000 employers). In FY2015, TeamLease rolled out DA (Degree Apprenticeship) to provide on-the-job training to apprentices.