Blue Collar Workforce Trends 2025

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.