Flexi-staffing Industry's Q3 Growth Lowest In Past 10 Quarters: ISF Report

Reversing the trend seen in the past three quarters, flexi-staffing in India registered a sequential growth in new hiring of a mere 0.8 per cent in Q3FY23, the lowest in 10 quarters, said a report released on Friday by the Indian Staffing Federation (ISF). Hiring activity was -7 per cent in Q1FY21.

The report titled 'Flexi Staffing Industry Staffing Employment Report' looks at the hiring trends in jobs involving short-term contracts for specific tasks. Flexi-staffing grew 6 per cent in the September quarter.

The ISF, which represents firms engaged in formal staffing, facility management and security service companies reported the lower growth on the back of slowdown in IT staffing. The IT staffing, in fact, saw a decline in net headcount in Q3 as the sector saw a contraction in hiring activity (-2.5 per cent) due to global layoffs leading to a number of projects closing down.

Meanwhile general staffing, which consists of e-commerce, tourism, manufacturing, retail, logistics, and banking, among other sectors, also saw a slower growth compared to the previous quarter (1.1 per cent).

ISF said in a statement that the formal workforce in India has been growing due to the surge in flexi staffing, with 192,000 new jobs in this space having been created by its member companies during the past four quarters.

Pramod Pachisia, vice president, Indian Staffing Federation, said despite the fact that firms reduced their hiring in the final quarter, ISF's member companies did manage to register positive growth on the whole.

"In the October-December 2022 quarter, there was a 0.8 per cent increase in new flexi jobs, despite a cautious employment market. This growth is a testament to the resilience of the Indian economy and the adaptability of the staffing industry. It also underscores the value that businesses are placing on flexi staffing solutions to meet their evolving workforce needs", Pachisia added.

Source: Indian Staffing Federation