Everyday Reflections

This is a two-part blog-series. It highlights the challenges we face in solving blue-collar jobs in India.

India is facing a unique conundrum. We have a massive pool of 450 million blue-collar workers, and according to a McKinsey report, around 70% of 90 million new jobs by 2030 are expected to be blue-collar roles. 

Yet, there’s a shortage of skilled labour.

→ The skilled-worker shortfall widened to 150 million in 2023, up from 138 million in 2020, according to TeamLease.

→Infrastructure job postings rose 62% between August 2022–2023, but worker interest grew only 5%, as per Indeed. 

→Deloitte’s Blue Collar Workforce Trends 2025 report highlights an attrition level of 5-7%, workbench levels of 3%, and frequent absenteeism.

High attrition leads to a constant re-hiring pressure. Since recruitment tends to be dependent on contractors/referrals, it also results in untrained hires and extra fees.

But, why is India’s workforce lagging in skills? 

Systemic challenges, inadequate training infrastructure, and socio-economic barriers are some factors to blame.  

Blue-collar jobs tend to be informal and workers can lack contracts, job security, access to training or social protection. They rely on on-the-job training rather than standardised programs. 

Consider this: Only around 4-5% of India’s workforce has received formal vocational or skill training, as compared with 68% in the UK, 75% in Germany, 52% in the US (52%) and 80% in Japan, as per TeamLease. 

The central government recently flagged 11 gaps in skilling India’s workforce. It highlights an unclear path of progression in vocational learning. Only 4.42% of India’s population aged 15-29 have a recognised vocational certificate as compared to 96% in South Korea and 75% in Germany. 

It also mentions how labour market trends are often not considered while training, which affects work quality and ability. Consequently, only 41% of ITI and 29% of polytechnic graduates are deemed employable. 

As automation and new technologies reshape industries, there emerges a mismatch between the skills possessed and the ones needed. For instance, 81% of workers in key sectors (like construction) are unskilled, states a Knight Frank-RICS report.

The training infrastructure also leaves much to be desired and can include outdated equipment, a shortage of instructors, and weak linkages with industry.

Another issue is that upskilling opportunities are not easily accessible for rural and informal workers. There are structural issues to consider as well, including wage inequality, unsafe working conditions, lax enforcement of labour laws, and gender disparity. 

While existing job-matching platforms focus on connecting employers and workers, they neglect skill development. But without addressing skill gaps, we can only come up with temporary fixes instead of systemic solutions.

While these are some of the challenges in upskilling, in the next post, we will be focusing on possible solutions to remedy the gap.

#BlueCollar #Labour #Upskilling