This decline is steep from the eight million jobs created in FY22 and is largely attributed to global macroeconomic headwinds.
The significant drop in the number of frontline jobs in the fiscal year 2022-23 can be primarily attributed to global macroeconomic challenges. A report from a frontline workforce management platform reveals a year-on-year decline of 17.5% in job creation during this period, largely due to these macroeconomic headwinds and an overall uncertain economic environment affecting manpower demand in specific sectors.
The report, compiled by BetterPlace’s Frontline Index, analyzes data from over three million data points and indicates that approximately 6.60 million frontline jobs were generated in the country in the last fiscal year. This number marks a considerable decrease from the eight million jobs created in FY22. These frontline jobs encompass essential customer-facing positions such as sales and business development executives, call center personnel, delivery staff, marketing professionals, and housekeeping staff, among others.
Interestingly, in FY23, the logistics and mobility sector took over as the leading employment industry for frontline workers, experiencing a remarkable demand surge of over 111% throughout the year. Ecommerce, although seeing a 52% drop in demand, remained the second-largest employer, accounting for 33% of the total frontline jobs. The integrated facility management (IFM) and IT industry witnessed the most rapid growth in demand for frontline jobs, expanding by 139% in FY23.
The report also highlights a rising trend in gig work, as more enterprises seek to make their workforce costs variable. E-commerce retained its position as the top employer of women frontline workers in FY23, constituting 64% of the total female workforce.
Pravin Agarwala, Co-founder, and Group CEO at BetterPlace, commented on the dynamic nature of India’s frontline workforce ecosystem, emphasizing its vulnerability to external economic factors. Agarwala noted that macroeconomic challenges have prompted enterprises in India and Southeast Asia to reevaluate their hiring practices, resulting in an increased adoption of gig work. He stressed the importance of technological solutions to manage these evolving dynamics while enhancing productivity and retention.
This comprehensive report, based on data collected by BetterPlace from April 2022 to March 2023, draws from a sample of over 3 million data points. It offers detailed insights into hiring trends, demand patterns, attrition rates, migration, salaries, and upskilling efforts within India’s frontline workforce.
