Is India’s Flexi Workforce Set to Grow by 12.6% Annually?
Click to start listening
Synopsis
A new report reveals that India’s flexi workforce is on track to grow significantly, reaching 9.16 million by FY27. This growth will be driven by various sectors, showcasing a shift in employment trends and opportunities for skilled workers across the nation.
Key Takeaways
- India's flexi workforce projected to reach 9.16 million by FY27.
- Annual growth rate of 12.6% expected.
- Flexi staffing revenue estimated at nearly Rs 2,58,000 crore.
- Logistics and BFSI sectors employ 38% of flexi staff.
- Young workforce drives demand for flexi jobs.
New Delhi, Sep 19 (NationPress) A recent report indicates that India’s flexi workforce is projected to expand to 9.16 million by FY27, with a compound annual growth rate (CAGR) of 12.6%. The findings, compiled by the Indian Staffing Federation (ISF), emphasize the critical role that the flexi staffing sector will play in transforming formal employment in the years ahead, driven by economic recovery and an increasing demand across various industries.
The ISF report, titled ‘Indian Flexi Staffing Industry 2025: Employment Growth – Sectoral & State Analysis’, anticipates that the flexi staffing sector will generate revenues nearing Rs 2,58,000 crore (approximately $24 billion) by FY27, reflecting a growth rate of 17.3%.
By FY26, the market is expected to reach Rs 2,20,000 crore. This growth trajectory illustrates how organizations are progressively depending on contract and temporary labor to enhance agility, minimize compliance challenges, and swiftly access skilled professionals.
At present, India holds the position of the third-largest flexi workforce globally, with a total of 7.2 million in FY25, accounting for 1.3% of the overall workforce.
The states of Maharashtra, Karnataka, Uttar Pradesh, Tamil Nadu, and Telangana contribute to nearly 55% of this workforce, while smaller cities like Coimbatore, Mysuru, Indore, Bhopal, and Surat are emerging as significant hiring hubs.
In terms of sectors, logistics, banking and financial services (BFSI), and manufacturing collectively employ around 38% of the nation’s formal contract staff.
The e-commerce sector has demonstrated the highest growth in flexi hiring over the last five years, with an average annual increase of nearly 20%.
Fintech has also become a notable contributor. Overall, 80% of the workforce originates from 12 key sectors, including IT, infrastructure, retail, education, and healthcare.
ISF President Lohit Bhatia remarked that the growth of flexi staffing signifies an expansion of formal employment throughout the country.
He highlighted that Tier-2 and Tier-3 cities are granting temporary workers the advantages of recognized employment, fair compensation, annual incentives, and health benefits.
“This showcases the increasing availability of skilled labor beyond metropolitan areas and the transition to a more equitable job market,” he stated.
The report also notes that this trend is being influenced by India’s youthful workforce.
About 71% of individuals pursuing flexi jobs are under 30 years old, with women's participation at 26% in the previous fiscal year.
Point of View
It is vital to recognize that the burgeoning flexi workforce in India not only responds to market demands but also presents new opportunities for employment across diverse sectors. This growing trend is a testament to the resilience of the Indian economy and the adaptability of its workforce, ensuring that formal employment continues to evolve.
NationPress
20/09/2025
Frequently Asked Questions
What is the projected growth rate of India's flexi workforce?
The flexi workforce in India is projected to grow at a compound annual growth rate (CAGR) of 12.6% by FY27.
How many people are expected to be part of the flexi workforce by FY27?
By FY27, India's flexi workforce is expected to reach 9.16 million.
Which sectors are driving the growth of the flexi workforce?
The logistics, banking and financial services (BFSI), and manufacturing sectors are among the key drivers, employing about 38% of the flexi workforce.
What role do Tier-2 and Tier-3 cities play in this growth?
Tier-2 and Tier-3 cities are emerging as significant hiring hubs, contributing to the availability of skilled labor and recognized employment opportunities.
How does the report reflect on the youth participation in the flexi workforce?
The report indicates that approximately 71% of individuals seeking flexi jobs are under the age of 30.
