Navigating India's Evolving Workforce: Historical Trends and Future Projections

The Future Work in India report by the Observer Research Foundation and the World Economic Forum shines light on the evolution of the labour market in India, emphasising its significant impact on the job market and facility management sectors. These insights reveal an optimistic posture towards digitisation and technology, pushing the economy of India towards substantial growth, while acknowledging the persistent challenge of skill gaps and the necessity for internal training strategies among companies.

With the Indian workforce is positioned as young and dynamic against the backdrop of an expanding economy, the labour market in India faces a unique set of challenges and opportunities, particularly in facility management.

Historical Overview of India's Labour Market

Economic Shifts and Employment Trends

The Indian economy has transitioned from being labour surplus, where high employment levels were essential for growth, to experiencing market-oriented structural reforms since the 1980s.

Despite these reforms leading to higher GDP growth, the organised sector has seen slow employment growth, and there has been an increase in casual jobs.

The social security system in India covers less than 10% of the workforce, primarily those in the formal sector, leaving a vast majority without substantial support. The informal sector remains large, lacking better economic opportunities, with poverty reduction progressing slowly.

Recent Developments and Challenges

The COVID-19 pandemic exacerbated job market challenges, causing significant job losses especially in hospitality and retail, while the gig economy and skill-based hiring have gained prominence.

Despite a gradual recovery in sectors like IT due to digitization, the manufacturing and services sectors are still below pre-pandemic employment levels, highlighting the need for targeted job creation strategies.

Current Trends in Employment vis-a-vis Facility Management

There is a notable decline in the Labour Force Participation Rate (LFPR), especially marked by a significant gender gap. Low unemployment rates are largely due to labour participating in the large informal sector, where the quality of jobs remains a concern, often characterised by poor conditions and minimal security.

The facility management sector faces challenges due to this informal employment structure, which accounts for 69.5% of non-agricultural jobs as of a couple of years back. However, opportunities for improvement exist, particularly through the formalisation of employment and enhancement of job quality.

Emerging Labour Trends and How They Affect Facility Management

With the advent of automation and digitalisation, facility managers need to invest in training programs to ensure that their staff are equipped with the relevant technical and soft skills required to navigate this shift. Enhancing skill development programs can bridge the gap between current workforce capabilities and market needs, thereby improving employment quality and reducing skill mismatches.

Facility managers must also now effectively integrate and manage a mix of full-time employees and contract workers, addressing the associated challenges of coordination, supervision, and ensuring a cohesive team environment.

Additionally, there is a growing recognition of the need for gender diversity and inclusivity in the workforce. Facility management professionals are increasingly focused on creating inclusive work environments, addressing gender-specific needs, and promoting equal opportunities within their teams.

Currently, there are some hurdles to be addressed. Despite rapid growth, the Indian facility management sector faces challenges such as the scarcity of skilled manpower and the need for market acceptance of more organised service structures. Future strategies will include enhancing the skill sets of the workforce to include green job capabilities, with a focus on sustainability and efficiency. Employers are increasingly valuing green skills, which align with global sustainability trends.

By focusing on these emerging trends and adapting to the evolving market demands, the facility management sector in India can anticipate a robust future, marked by innovation and efficient service delivery.