AI Boom Fuels Unprecedented Demand for Skilled Blue-Collar Workers in India

Representative image

NEW DELHI: Most of the conversation around AI has been about the jobs it could disrupt. What the technology has also triggered, far less visibly, is an unprecedented surge in demand for certain skilled human talent. An analysis by talent firm Randstad of over 50 million job postings, shared exclusively with TOI, shows the demand in India has skyrocketed for electricians by 242%, HVAC technicians 200%, and robotics technicians over 500%, in four years. “Every AI breakthrough has a physical backbone — power grids need an upgrade, cooling systems must be built, and factories increasingly need to be automated. Behind every intelligent machine, highly specialised human expertise is required,” Viswanath P S, MD & CEO, Randstad India, said. Terming it as a pronounced “labour flip”, he said skilled, technical trades are outpacing traditional, entry-level professional roles. Skilled workers, categorised under the blue-collar workforce, are those who hold a formal certification, diploma, or degree, from a reputable institute, such as a certified welder or an electrician. According to the analysis, the surge in demand for skilled trades is also reshaping compensation structures with the salary gap between skilled blue-collar workers and entry-level white-collar employees narrowing. In India, average blue-collar salaries are growing at 5.7% year-on-year compared with 4% for entry-level white-collar roles, the analysis said. The average blue-collar salary here is $2,612, but certain specialised roles could command significantly more. For instance, annual remuneration in India for mechanics involved in robotics and specialised maintenance is $9,106, while plant and machine operators earn $7,815 and workers in building and construction $5,420. Electricians, which encompasses HVAC installation/wiring, are paid $3,296. As against this, for basic entry-level white-collar positions such as data-entry operators and junior accounting roles, the remuneration is around $2,711. Some of these roles are increasingly being impacted by automation and AI. Meanwhile, the hiring trends reflect this shift as well. India’s blue-collar job volumes have surged by a staggering 93% in four years between 2022 and 2026, which is linked to infrastructure development and AI-related backbones, the analysis says. Interestingly, India presents a unique dual-growth market. "Unlike major Western economies that saw severe contractions in desk-based work, India’s labour market is expanding across the board. White-collar roles also demonstrated robust momentum, growing by over 40%,” Viswanath says. “Certain GCCs are currently creating entry-level opportunities, such as payroll specialist roles. However, it remains to be seen how long these jobs will endure in an AI-driven environment,” he said.