12 million Jobs in Engineering, Healthcare & Telecom Sectors By 2026, Report Suggests!

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12 million Jobs in Engineering, Healthcare & Telecom Sectors By 2026, Report Suggests!

Telecom, Engineering, and Healthcare comprise a nearly USD 1.5 trillion aggregate sector in market size and employ about 42 million people, i.e 8.7% of India’s entire workforce. According to a report by Teamlease, these 3 sectors are likely to add 12 million more jobs by FY26.

The predicted growth in the workforce comes at the backdrop of post-covid recovery, technology proliferation, and digitalization in these segments. The report also noted that out of the 42 million-strong workforce in these 3 sectors, close to 4.6 million are employed in specialized roles. In fact, it predicted that 17% of the jobs created by FY26 will be in the specialized skills sector.

“India’s problem has never been a shortage of the three factors of production; land, labor, or capital. But our traditional challenge has been the fourth factor of production that economists call Total Factor Productivity and ordinary people call innovation and productivity,” said Manish Sabharwal, Vice Chairman, TeamLease Services.

Industry On The Verge Of Industry 4.0

According to Sunil C, the Head of Specialised Staffing at TeamLease Digital, the Telecom, and healthcare sectors are on the verge of an industry 4.0 transformation. “There is a shift from a central industrial control system to one where smart products and processes are at the heart of their operations," he said.

The report carried out a qualitative survey with a sample size of 750 employers in the three sectors. It delved into the top specialized roles and the related sought-after skills, skill gaps, measures undertaken to address the gap by employers, and market median salaries for these roles.

“Specialized roles within these sectors witnessed a huge demand & growth for contract employment in the last 2 years while Healthcare emerged as an aggregator. The three sectors in focus witnessed an increase of 10 -11% scale in contract staffing. During FY '22, the Engineering sector oversaw the highest growth in hiring of specialized roles, in comparison to Telecom and Healthcare,” Sunil C said.

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Engineering Sector

The Engineering sector employs about 30 million people, and this is slated to grow at a pace of 6.1% CAGR to reach 38 million by 2026. The engineering sector scored the highest growth rates among the three sectors during FY 2021-22.

                  (Source: Professional Staffing - Digital Employment Trends Report- Teamlease)

Salient points

The Engineering sector is likely to contribute nearly 27% to the national income by end-2022.
Employers were seen to be hiring for a wide range of specialized roles due to which hiring demand was seen to be spread more or less uniformly across the top specialized roles.
Auto, Aerospace & Defense Power & Construction Chemical, Agri & Process Manufacturing Electrical and Electronics are the Top 5 sub-sectors that contributed to the demand and function for specialized roles.
The Chemical, Agri and Process, and Electrical and Electronics sub-sectors accounted for more than half of all sectoral demand for specialized roles.
Medium-sized businesses account for 50% of the demand for specialized roles.
Cities in the south and the east of India constitute 60% of all demand for specialized roles.

                   (Source: Professional Staffing - Digital Employment Trends Report- Teamlease)

Telecom Sector

The Telecom sector employs an estimated 4 million people and is expected to grow by 10.6% CAGR to become 6 million by 2026. Telecom Infrastructure and Development constitutes the largest sub-sector with estimated market size of USD 104 billion.

                   (Source: Professional Staffing - Digital Employment Trends Report- Teamlease)

Salient Points

The sector is expected to contribute 8% to India’s GDP in 2022, with 5G technology contributing approximately USD 450 billion during the 2023-2040 period.
Network Engineers were in high demand in the sector, amongst nearly one-third of all Telecom companies during the FY, with data, video, and wireless network services becoming more critical than ever.
Hiring for specialized roles grew at close to 100% and the sector made the highest payouts for specialized roles.
Technical Lead, Technical Architect, and Security Engineer (IT) were sought after in four out of five sub-sectors.
Roles that were hired in the Permanent mode included the highest in demand Network Engineer and the Operations Manager. Technical Support and Technical Lead roles were mostly hired on Contract, while the Security Engineer (IT) is increasingly being seen as a gig role.

                 (Source: Professional Staffing - Digital Employment Trends Report- Teamlease)

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Healthcare Sector

The Healthcare sector employs nearly 7.5 million people currently and is expected to grow to 9.5 million by 2026. The Healthcare Services and Facilities subsector dominates with market size of about USD 116 billion.

                  (Source: Professional Staffing - Digital Employment Trends Report- Teamlease)

Salient Points

Due to the need to collate and analyze patients in today’s world, The Nurse Informatics Specialist (in demand among 20% of all employers surveyed, and hiring growing at 175%) and Clinical Research Scientist (in demand among 17% of all employers surveyed) dominated the hiring scene in the sector during FY 2021-22

Hiring for most top specialized roles in the sector witnessed growth in the 100% - 200% range.
Each of the Healthcare subsectors placed equal emphasis on data and research roles as they did on production, sales, and service roles.
Hiring during the FY was clearly dominated by Pharma and Biotechnology with a 52% share. The Medical Devices and Hospital Supplies subsector hired less than half of this share (23%) to occupy the second place.
Bangalore and Mumbai dominated hiring among cities, and mid-sized businesses accounted for more than half of all hiring.
Most Healthcare employers engaged talent via gig and mixed modes of employment during FY 2021-22, with the mixed engagement type turning out to be the most popular.

                   (Source: Professional Staffing - Digital Employment Trends Report- Teamlease)

“Policymakers, firms, universities, and staffing firms are now actively working together in the quest for a more prosperous, inclusive, and productive India which will soon cross Japan and Germany to become the 3rd largest economy in the world. India’s staffing industry is rapidly moving beyond its traditional domains, sectors, and salaries. This report is only a small preview of how the infrastructure of opportunity is evolving to meet our national ambitions and become the skill and productivity capital of the world,” said Manish Sabharwal, Vice Chairman, TeamLease Services.