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Blue Collar Workforce Trends 2025

From manual labor to tech-driven change

In 2025, India’s blue-collar workers are adapting to a tech-enabled future as automation, AI, and labour reforms reshape industries like manufacturing and logistics. With a strong manufacturing rebound underway, there’s growing opportunity to enhance worker support through fair compensation, upskilling, and improved health and safety. Together, these advances pave the way for a more resilient and empowered workforce.

Blue collar industry trends

69 percent of blue-collar hires are temporary, with low permanent conversion, short average tenure of 21 months, and growing reliance on third-party vendors to manage costs and turnover.

Employee benefits are evolving to emphasise training and skill development, while leave encashment typically includes basic pay plus daily allowance, capped at a median of 45 days across industries.

Salary increases largely prioritise basic pay and allowances with limited emphasis on inflation adjustments, while a decline in union membership fueled by growing contract and informal labor diminishes collective bargaining strength.

The blue-collar sector is navigating skill gaps and workforce challenges as productivity expectations grow and demand for skilled labor continues to rise across industries.

Blue-collar wages grow steadily with performance incentives, and earnings vary by qualification, with skilled workers typically earning more than their non-skilled counterparts.

Wages in the blue-collar sector increase annually, with performance-based incentives added. ITI and diploma holders earn more than non-ITI workers, creating a noticeable pay gap.

Gender diversity remains limited in the blue-collar workforce, with the gender pay gap continuing to widen, while organisations are enhancing efforts to foster inclusivity through targeted gender diversity and LGBTQ+ initiatives.

Demographic trends : Educational, experience and age demographics
Conclusion

Deloitte India’s Blue Collar Workforce Trends 2025 report is now available, featuring insights from over 200 organisations and 300 plants across multiple industries and regions. This comprehensive study offers data-driven analysis to help business and HR leaders navigate the challenges of attracting, engaging, and retaining skilled blue-collar talent. For more information or to access the full report, contact inbenefits@deloitte.com.