The global outbreak of COVID-19 has disrupted everyday life and reshaped the global economy in unprecedented ways. In India, one of the hardest-hit sectors during this crisis has been the blue-collar workforce. The pandemic not only caused widespread job losses but also took a toll on the mental health and financial stability of millions of workers.
To better understand the impact, platform trends from Jobs have provided insightful data on how the blue-collar job landscape changed during the peak of the pandemic and how the rise of remote work has emerged as a significant trend.
Key Areas of the Blue-Collar Industry Affected by the COVID-19 Crisis
1. Job Availability and Worker Accessibility Declined
The lockdown severely disrupted both the demand and supply of blue-collar labor. According to Jobs’ platform trends, there was a sharp decline in both job listings and active job seekers during the early phase of the lockdown. However, April saw a surprising rebound—with a 108% increase in job applications and over 36% growth in job availability—suggesting signs of recovery despite the challenges.
2. Unemployment Rates Soared Nationwide
The pandemic led to a steep rise in unemployment across India. Data shows a 48% increase in job applicants per opening, reflecting a direct correlation with rising joblessness. Unemployment in metropolitan areas surged by 65%, while in non-metro areas it rose by 43%.
By May, several job categories witnessed a significant surge in the number of applicants:
- Data entry: 115% increase
- Driver roles: 122% increase
- Delivery executive: 139% increase
- Marketing: 179% increase
- Teaching: 108% increase
- Sales: 187% increase
These figures highlight a growing gap between job availability and demand.
3. Reverse Migration of Workers
As cities shut down and jobs disappeared, many workers returned to their hometowns. This wave of reverse migration shifted the job market dynamics. Before the pandemic, 44% of job seekers were in metro cities and 55% in non-metros. During the lockdown, the distribution changed slightly to 43% in metros and 56% in non-metros.
While many migrants moved home for safety and financial reasons, most expressed a strong desire to return to cities once conditions improved, underscoring the dependency of rural populations on urban job markets.
4. Wage Deflation and Salary Expectations
Another major impact of the crisis was the deflation in wages. Employers, facing their own financial pressures, began offering reduced salaries. However, most job seekers were initially hesitant to lower their salary expectations, creating a mismatch. It is anticipated that salary expectations and offerings will continue to fluctuate depending on the pandemic’s long-term effects.
5. The Rapid Rise of Work-from-Home Opportunities
Perhaps the most transformative change has been the shift toward remote work. What was once considered a privilege for a few became the norm for many.
During the lockdown, there was a 9% rise in remote job listings and a matching increase in job seeker interest for such roles. Before the pandemic, only 15% of available jobs and 11% of job applicants were related to work-from-home opportunities. These numbers increased to 24% job availability and 20% job applicants during the crisis.
Breakdown of popular work-from-home job types:
- Content writing: 44%
- BPO roles: 45%
- Data entry: 17%
- Data collection: 16%
Remote work has proven to be a silver lining in a difficult time and is expected to remain a key component of the employment landscape moving forward.
Looking Ahead: Recovery and Resilience
India’s leading job platforms have played a critical role in connecting job seekers with opportunities during these trying times. With a deep understanding of hiring trends across blue-collar and entry-level white-collar roles, platforms like Jobs continue to support workers and businesses alike as they navigate the post-pandemic recovery.
The COVID-19 crisis has brought attention to both the vulnerabilities and the adaptability of India’s labor market. As businesses rebuild and digitization accelerates, the blue-collar workforce must be equipped with the necessary support, training, and opportunities to thrive in a reshaped economy.
