India’s employment in the construction sector is estimated to grow to 100 million to attain economic growth targets, according to a report by Knight Frank Indi
The construction sector, which is the second-largest employment generator in the country, is estimated to employ 71 million of the workforce by 2023.
According to a report by Knight Frank, the real estate sector in India heavily relies on unskilled labor, with more than 80% of the workforce falling under this category. Only 19% of the workforce in the real estate sector are skilled employees, which amounts to approximately 1.3 million workers. The core skilled employees, including engineers, technicians, and clericals, make up 4.4 million, while 6.9 million are vocationally trained employees.
The National Skill Development Council (NSDC) states that 87% of both skilled and unskilled employees are absorbed by the real estate sector, while the remaining 13% find employment in the infrastructure sector.
The report reveals that the cumulative supply of core skilled employees, particularly civil engineers, between 2012 and 2021 was 8,96,864. It is estimated that around 17 lakh civil engineers may seek employment by FY2029-30, growing at a CAGR of 10.4% with an average annual increment of 1.8 lakhs, as per a report in Livemint.
Currently, India boasts nearly 3,200 universities and colleges providing full-time construction-related courses to cater to the demand for skilled employees in the sector.
Over the past decade, India’s construction sector, encompassing infrastructure and real estate, has experienced a CAGR of 11%. This sector, along with the output from real estate services and ownership of dwellings, contributes 18% to the country’s total economic output.
Between FY 2012-22, the construction sector attracted a cumulative FDI inflow of $35 billion, indicating the significant interest from foreign investors in the Indian real estate market.
The report predicts that the output generated from India’s real estate sector will increase to $1 trillion by 2030 from the existing $650 billion. This growth is expected to be driven by various factors, including rising demand for residential properties, commercial developments, retail spaces, hospitality projects, and warehousing facilities.
Shishir Baijal, Chairman, and Managing Director of Knight Frank India emphasized the correlation between India’s economic growth and the expansion of the construction sector. He stressed the importance of skilled and semi-skilled employees to maximize productivity levels and sustain the sector’s growth in the future.
“In the recent few decades, India’s economy has significantly grown positioning itself as one of the fastest growing economies globally. In tandem with economic growth, the construction sector has significantly expanded. The sector has contributed nearly 18% to the total economic output and is highly correlated with the economy’s GDP growth”. For optimum growth, the sector needs skilled as well as semi-skilled employees aiming at maximizing productivity levels,” Shishir Baijal said
Gig Economy Expected To Grow
According to a Niti Aayog report titled ‘India’s Booming Gig and Platform Economy,’ the Indian gig workforce is projected to grow to 23.5 million workers by 2029-30, which is nearly a 200% increase from the current 7.7 million workers.
The demand for gig workers has witnessed a tenfold increase, and their participation has tripled in 2022 compared to 2021, as highlighted in the Taskmo report 2022. The gig economy has witnessed a significant rise in youth participation, which has grown eightfold between 2019 and 2022. Similarly, women’s participation has also shown remarkable growth, increasing from 18% to 36% in the past year, reported The Financial Express.
A survey by Aon called ‘Decoding the Gig Economy’ revealed that 49% of the 145 companies surveyed have already hired gig workers, and 65% plan to increase their gig workforce in the next two to five years. This indicates a vast potential for job seekers in various sectors, including blue-collar, white-collar, and grey-collar jobs.
The gig economy is expected to play a crucial role in achieving India’s goal of becoming a $5 trillion economy by 2025. It has the potential to bridge the income and unemployment gap in the country.
Additionally, a study conducted by the Boston Consultancy Group (BCG) found that the Indian gig economy could create up to 90 million jobs in the non-farm sectors, contributing around 30% of India’s GDP. The efficiency and productivity gains from the gig economy have the potential to add up to 1.25% to India’s GDP.
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2023-08-03 11:34:47.0
India’s Construction Sector To Employ 100 Million, Requires Skilled Workers: Report
