Indian Ecommerce Will Create 2 Crore New Jobs But Also Destroy 80 lakh Traditional Jobs By 2026 (HSBC Report)
“There ain’t no such thing as a free lunch” – Old management proverb
HSBC’s Global Report for 2016 forecasts both positive and negative news for job seekers in India. As per the report, ecommerce will act as a catalyst for creating massive jobs all over the country, but at the same time, it will destroy millions of traditional jobs as well.
Overall, the good news is that, ecommerce will alone account for 50% of overall new jobs created pan-India. HSBC has estimated that in the next 10 years, approximately 24 million or 2.4 crore new jobs should be created, and out of this, ecommerce will create 20 million or 2 crore jobs.
However, when something new comes up, the old has to give in and resign.
The explosion of ecommerce and digital economy means that around 8 million or 80 lakh traditional jobs would be destroyed by 2026. By traditional, we mean brick and mortar jobs, which were traditionally done at a location/office.
This is certainly not a shocking news, as we have been reporting the effect of automation and technology on traditional IT jobs- when chatbots start taking pizza orders, then jobs are bound to reduce. In the next few years, more than 3 lakh IT employees would be given a pink slip even as freshers are being recruited at a slower than ever pace.
But, this recent HSBC report is indeed shocking, because for the 1st time, ecommerce has been blamed for destroying traditional jobs; although the report mentions that overall, ecommerce will generate 1.2 crore jobs in the next 10 years.
Where Would Be The New Jobs?
The report mentions that ecommerce has opened up a new window of job creation within India – it not only absorbs the less-skilled, less-educated youngsters, but also provides them ample opportunities of growth.
Pranjul Bhandari, chief India economist with HSBC said that ecommerce is “more productive than the types of jobs India is currently creating,”
Overall, out of 2 crore new jobs, logistics and deliveries will consume 70% of the new jobs; whereas IT, Customer Care and Management will consume remaining 30% of new ecommerce jobs.
The report also laments the fact that India is right now atleast 7 years behind China’s ecommerce market level, but with introduction of better broadband connectivity, cheaper access to high speed Internet and better Govt. policies, we can bridge the gap sooner.
Interestingly, a recent Google and Boston Consulting Group (BCG) has predicted that by 2020, around 50% of India’s population will indulge in digital payments. If this actually happens, then these new 2 crore jobs would be created earlier than expected in India.