Current unemployment trends in India don’t always equate to lower labor costs. The booming gig economy has flipped the script, making skilled workers harder to find and costlier to hire.

Last year, a customer enlisted me to source electricians and plumbers across North India for their warehouses. They expected lower rates due to the seemingly abundant workforce. However, the reality on the ground proved quite different.

Skilled tradespeople have become a hot commodity. Empowered by online platforms promising flexibility and better pay, many have abandoned traditional jobs, shrinking the available talent pool.

To help the customer meet their budget, we hired a mix of experienced and fresh talent, implementing a training program for the newcomers on-site. This initially alleviated the strain, but within a year, most trainees transitioned to gig work

The gig economy has undeniably empowered workers, but it has also created a paradox: while “manpower” seems plentiful, there’s a shortage of skilled individuals. Companies are now forced to pay a premium for those who meet their needs.