In a telling paradox that exposes the structural fragility of India’s fast-expanding gig economy, the surging demand for short-term workers—particularly across Tier II and III cities—is now colliding head-on with a deepening labour shortage. The consequences are not merely operational for companies but symptomatic of broader inefficiencies in workforce planning, inter-state migration, and labour rights protection.
A Surge in Demand, A Strain on Supply
According to data from multiple staffing agencies, demand for gig workers in logistics, banking services, and consumer goods has increased by 15% to 20% in cities such as Lucknow, Indore, and Coimbatore. This spike coincides with the onset of the summer season and a consumer-driven revival post-pandemic. However, despite the resurgence, the availability of workers has remained alarmingly low, with attrition rates crossing 35% in some delivery platforms.
Further complicating the picture is the rising cost of manpower. The average cost of hiring a temporary worker has shot up by 10% over the past year alone. As a senior staffing consultant noted, “Hiring isn’t just about numbers anymore—it’s about reliability and sustainability, both of which are becoming elusive.”
Summer Heat and the White Goods Boom
Seasonal demands have further exacerbated the shortage. Sales of cooling appliances—especially air conditioners and refrigerators—are expected to grow by 50% year-on-year for some manufacturers. This has led to a hiring surge of up to 25% among appliance retailers and delivery chains. Consumer demand is not just from existing buyers but from first-time customers as well as those looking to replace older appliances, reflecting a broader shift in rural and semi-urban purchasing trends.
Mint’s industry analysis highlights that India’s festive sales period—from September to December—is likely to see even more intense hiring activity, with frontline sales roles and delivery gigs experiencing sharp spikes. During the Diwali peak in 2023, for instance, frontline gig hiring rose by 30%, a trend expected to persist in 2025.
Migration Woes and Regional Disparities
A crucial reason for the imbalance lies in migration bottlenecks. Workers from eastern and central India—traditionally the backbone of seasonal employment—are increasingly reluctant to relocate to southern hubs like Bengaluru and Chennai. The cost of relocation, combined with inadequate living conditions and stagnant wages, has dissuaded many. One study suggests that inter-state labour mobility is down by 12% compared to pre-pandemic levels.
In cities like Surat and Hyderabad, employers are now forced to offer short-term incentives, signing bonuses, and transport allowances—measures that inflate costs but do not guarantee retention.
The Broader Structural Gaps
This situation reflects a systemic gap in India’s labour governance. The gig economy, which employs over 7.7 million workers as per NITI Aayog’s 2022 estimates, continues to operate largely in informal silos. Social security remains absent for the majority, and regulatory clarity is yet to be achieved despite promises under the draft Labour Codes.
Unless these fault lines are addressed—through investment in skill training, mobility infrastructure, and legal protections—the current growth trajectory may prove unsustainable. The economic engine powered by gig labour may continue to run, but it will do so with increasing friction and declining equity.
The summer’s staffing crunch is a warning bell. What is needed is not just more hands, but a more humane, systematic framework that values and supports them.