Flexi-staffing industry records four-quarter high growth in Q2: Report

Sequential growth in employment generation by the flexible (flexi)-staffing industry touched a four-quarter high of 5.9 per cent in the second quarter (Q2) of 2023-24 (FY24), as shown in the latest report released by the Indian Staffing Federation (ISF) on Wednesday.

The report, titled ‘Flexi-Staffing Industry Staffing Employment Report’, examines hiring trends in jobs involving short-term contracts for specific tasks across various sectors.

The flexi-staffing industry had grown by 5.4 per cent in the previous quarter.

The ISF, which represents firms engaged in formal staffing, reported growth in employment in Q2 on the back of a rise in demand for formal staffing in key sectors such as e-commerce, retail, fast-moving consumer goods, logistics, manufacturing, hospitality, tourism, aviation, and energy.

The report also noted that as of September 2023, the total formal flexi workforce, consisting of both the general flexi staffing and information technology (IT) flexi-staffing industries, employed by members of ISF, stood at 1.57 million. Meanwhile, flexi staffing generated 71,000 new jobs in Q2.

While general flexi staffing contributed to new employment growth at 6.1 per cent in Q2FY24, IT staffing also witnessed positive growth for the first time in four quarters.

IT staffing grew by 1.5 per cent quarter-on-quarter (Q-o-Q) in Q2FY24.

“The IT staffing industry has started to show positive recovery from the previous three quarters in its Q-o-Q growth. However, new employment numbers have not added as much to pull the industry in complete recovery, although the IT industry looks promising in the quarters ahead,” said Pramod Pachisia, vice-president, ISF.

The IT services open new employment generation triggered by high volumes.

“New employment witnessed an additional boost with employment trends coming from banking, financial services and insurance, financial technology, IT infrastructure, Cloud, cybersecurity, and data analytics. Although the global scenario continues to impact across the world from the influence of overseas financial markets, Israel-Hamas conflict, and Ukraine-Russia war, among others, India comes across as resilient amidst all,” the report said.