Introduction to Blue Collar Workers in India & How the Second Covid Wave Impacted Them
India has 3.4 million blue-collar workers, who are largely employed in the informal economy.
Blue collar workers are not considered as a lower caste in India, but are often given less work to do. They have more freedom to move from employer to employer than other wage-earning groups, and they’re seen as the most economically vulnerable social group in India’s labor force
The Second Covid wave impacted blue collar workers in two ways:
1) it brought about technological advancements that led to new jobs, and
2) it increased competition for jobs that never existed before.
Predicting the Current and Future life of the Blue-Collar Worker in India
In India, the population is shifting from a demographic that is predominantly young and male to one that is made up of mostly older men. This shift in demographics has been creating a demand for better jobs for this demographic.
India is an emerging economy and it has been the fastest-growing major economy in the world since 2014, surpassing China. Over the last two decades, there has been a huge shift in demographics and India’s blue-collar worker demographics is changing drastically.
The number of jobs in India that require physical labor or technical skills is on the rise. The country’s new economy requires more white collar positions than blue collar positions. However, there are some jobs for blue collar workers such as electricians, plumbers and truck drivers which will not be replaced by AI anytime soon.
The Current State of Affairs for Blue Collar Workers in India
India is a developing country with an expanding economy. Its population has grown from 420 million in 1951 to 1.2 billion in the year 2011, and the number is estimated to grow to 1.6 billion by 2050. In spite of this, India remains a poor country with a large percentage of its population living below the poverty line.
The current state of affairs for blue collar workers in India is a concern as they are one of the major sources of income. In rural India, these blue collar workers are mainly employed in small scale industries like the handicrafts industry.
The expansion of globalization and automation has led to an increase in white collar jobs and decrease in blue color jobs. This may lead to the displacement of blue color workers which can worsen their quality of life.
India is considered to be one of the fastest growing economies in the world. But it is also home for a large population of blue-collar workers. The new economy has created many opportunities for these blue-collar workers, but they are struggling to take advantage of them due to lack of skills and education.
Many economists believe that blue-collar workers in India are not skilled enough to fill the new jobs that are being created by this new economy.
The government is trying to address this issue by investing more money on education for these people so they can benefit from the growth in the economy.
The Dangers of Unemployment and Job Loss in Rural Areas of India
India has been facing a huge problem with unemployment and job loss for the past two decades. This is a global issue, but India has been hit the hardest.
The average unemployment rate in India is around 3.4%. But in rural areas it reaches as high as 10%. Which means that one out of every three people who live in an Indian village cannot find a job.
The reasons for this are diverse. The most common being the lack of formal jobs available and there being insufficient infrastructure to facilitate growth within villages themselves.
India is experiencing an unemployment crisis. The unemployment rate of India is more than double than the number in China and Japan. Moreover, the rate of jobless people in India among youth is more than three times higher than that of other Asian countries.
The problem of unemployment and job loss in rural areas is reflective of the structural problems with the economy. It is proving to be a major hindrance for any meaningful development in these regions.
Conclusion: Economic Impact of The Second Covid Wave on the Blue-Collar Worker
It is predicted that by 2030, 64% of India’s workforce will be engaged in the services sector. We also know that this sector is the one which generates the most employment opportunities.
The Second Covid wave has increased the demand of skilled workers in India. There are three major factors which have influenced this economic impact on blue-collar workers in India
1. The increased demand for skilled labor in blue collar workers in India
Professional blue-collar jobs are increasing in demand in the Indian economy. This trend is seen as a result of automation and industry shift away from low skilled labour. India has one of the lowest percentages of unskilled workers worldwide, with only 1% of people working as farm laborers.
The increased demand for skilled labor is also due to the rapid economic growth, which is generating employment opportunities across sectors. The government’s “Make in India” initiative has also contributed significantly to this phenomenon by boosting exports and attracting FDI into the country. This will result in an increase in job opportunities, including hiring skilled blue collar workers that are required to take on these jobs.
2. Demand for more technical skills in blue collar workers in India
The number of blue collar workers in India is increasing. The demand for more technical skills is being met by both formal and informal education systems.
India’s blue collar workforce is the world’s third largest, according to the International Labour Organisation. And it’s set to grow, as India becomes more urbanised with high levels of labour-force participation among females.
The World Economic Forum predicts that there will be a shortage of 24 million skilled workers globally over the next five years, especially among those with digital skills.
So what are the current trends in India?
India has made strides in recent years to improve its vocational training system, making it easier for students to study engineering or IT at vocational schools instead of traditional four-year colleges. The government has also worked on making it a reality.
3. Increased pricing power of the employer over Indian blue collar workers
The increased pricing power of the employer over Indian blue collar workers is a consequence of the economic liberalization in India in 1991. The liberalization led to the opening up of the Indian economy to foreign investors, who then started investing heavily in India. This led to an increase in demand for labour which then resulted in an increased supply of labour.
Indian blue collar workers have seen their bargaining power decline in the context of increased job specialization, export growth in labor-intensive industries, and an increasingly globalized labor market.
The availability of skilled labor is scarce in India. The country is already facing a shortage of labor to meet its growing demand for skilled workers. Indian blue collar workers are at the receiving end of this trend. They are seeing their bargaining power decline in the context of increased job specialization, export growth in labor-intensive industries, and an increasingly globalized labor market.
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