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When temp hiring becomes an increasingly permanent fixture in Indian companies

Livemint · 1y ago

Medial

Indian companies are increasingly turning to contract hiring instead of permanent employees to take on new projects and control costs. This shift comes as companies face uncertain economic conditions and project visibility. Contract hiring is expected to increase by 20% over the next few months, creating 600,000-700,000 jobs across various sectors. Industries such as FMCG, e-commerce, and quick-commerce are driving this growth. Contract employees are typically paid lower wages than regular staff and are not eligible for additional employee benefits. This trend is also driven by companies expanding in smaller cities and the transition of informal workers to formal employment.