Logistics sector to add 1.49 lakh new jobs

The logistics sector is poised to generate approximately 1.49 lakh new jobs during the April-September period of the current financial year, primarily propelled by the expanding presence of online sellers in smaller cities, as per a report. The biannual ‘Employment Outlook’ report by TeamLease Services for April-September 2019-20 anticipates a 3% growth in the logistics sector, resulting in the creation of 1.49 lakh jobs.

The report, based on research spanning 19 sectors and 14 geographies, surveyed 775 enterprises in India and 85 businesses globally. With an existing employment base of around 82.4 lakh people as of the second half of 2018-19, the logistics sector is experiencing heightened demand for talent due to the penetration of e-commerce companies into tier II and III cities, explained Sudeep Sen, Head of Industrial, Manufacturing, and Engineering Vertical at TeamLease Services.

Projections indicate a robust 14.19% job growth in the sector, with railways, waterways, air freight, and warehousing witnessing the highest talent absorption. Mumbai leads the list of cities with the maximum job opportunities in the logistics sector, adding 31,480 new jobs, followed by Delhi with an additional 28,510 jobs during the same period.

Tier II cities exhibit a significant 5% rise in hiring sentiment for April-September 2019-20, while tier III towns and rural areas both experience a 2% growth. The report also notes a positive hiring outlook for mid-level positions, anticipating a 4% increase, and entry and junior levels, expecting a 3% growth each. Attrition rates in the logistics sector are forecasted to be less significant than the previous October-March period of 2018-19, which stood at 17.27%.

In the broader context, medium-sized businesses are expected to witness a substantial 5% increase in hiring, large businesses are projected to grow by 2%, and small businesses are anticipated to experience a 1% growth.