Skill-based Employment Opportunities Versus Youth Aspirations in Logistics Sector in Hyderabad: Findings of a Market Study

Abstract

Skill-based training leading to youth employment has been accepted as an important means for addressing youth unemployment. The skill-based policies of the last one and half decades have emphasised the same. Logistics sector is a growing sector with the potential to create employment. This study delves into the current employment patterns in the logistics sector in Hyderabad, the potential for future employment, the state of the training ecosystem available for promoting youth employment and the youth aspirations for employment in the logistics sector. The study indicates that while there remains potential for youth employment in the logistics sector, there is low awareness as well as aspiration to join the logistics workforce. The tendency to associate low social prestige with the logistics sector remains a factor.

Keywords

Logistics sector youth employment skill development Hyderabad market scan job opportunities

Introduction

Skill development has received considerable attention from the government, policymakers and industry associations in the last decade in India to address the problem of unemployment. From the National Skill Development Policy of 2009 (Ministry of Skill Development and Entrepreneurship, 2009) to the National Policy for Skill Development and Entrepreneurship of 2015 (Ministry of Skill Developemnt and Entrepreneurship, 2015), the need for skill building has been consistently emphasised. National Policy for Skill Development and Entrepreneurship 2015 has identified a skills gap of 109.73 million in 24 key sectors by the year 2022. The policies aim to create a pro-skill environment, for employability and to help in securing ‘decent work’.¹

The focus on skill development is based on the logic that lack of skills prevents development of employability skills and youth end up getting into unskilled employment, which is low-paid, insecure and informal. The larger macro studies do indicate low level of vocationalisation of education. According to the NSSO periodic labour force survey for the year 2021–2022, about 3.4% had vocational education. Of this, vocational training received in rural areas was 2.2% and in the urban areas was 6.2% (Organisation, 2021-22). The situation is not too different in Telangana and the urban areas of Telangana.

Scholars have tried to attribute a positive relationship between skill development and employment. They have argued that placement-linked job diversification will lead to lifting youth out of poverty by providing employment (Das, 2015, 2021, 2024). Indian industry has shown that lack of timely skilling has huge opportunity costs and economic implications. It will slow down productivity. Instead of demographic dividend, it will become demographic liability. The dangers of joblessness have also been pointed out (Federation of Indian Chambers of Commerce and Industry, 2012). The World Employment Report of ILO has pointed out that unemployment can lower household income and block the crucial development of skills that come from work experience and on-the-job training. It is regarded as an obstacle and many studies linked joblessness to crime, drug abuse, social unrest and conflict (World of Work: World Employment Report 1998-99, World of 2000). Skilling the youth is expected to contribute to the benefits of demographic dividend. It is in this situation that skilling of youth acquires importance.

Starting with the National Skill Development Policy of 2009 and later on National Policy for Skill Development and Entrepreneurship 2015, India is undertaking large-scale skill development programmes, aiming at addressing the challenges of ‘employability’ and ‘joblessness’. Among the 20 priority sectors, the logistics sector has been identified as one of the priority sectors. A study was undertaken with the support of Tech Mahindra to understand the potential of the logistics sector for providing employment in Hyderabad city. Tech Mahindra Foundation sponsored the study in Hyderabad.

The objective of the study was to identify trends in the market related to the skills development space in the logistics sector in Hyderabad. The specific objectives were to identify 20 job roles, assess trends related to salaries, entry qualification, major recruiters, undertake competitor analysis of training providers and explore accreditation aspects for the courses.

About four scans were undertaken. These included sectoral scan, employer scan, youth scan and training institution scan.

A sectoral scan was undertaken through review of literature. The sample respondents included 35 employer organisations which included manufacturing units, third-party logistics, warehousing, courier, freight forwarding, courier, transportation, retailers, e-commerce and packers. Eight skill-training institutions were interviewed which included six private players and two government players. Similarly, about 120 youths were studied. Interview schedules were used for each of the respondents.

Type of Scan	Type of Respondent	Number of Samples	Details	Type of Tool Used	Nature of Data Collected
Employer scan	Employers	35	Manufacturing (4), third-party logistics (7), warehousing (4), courier (3), freight forwarding (5), transportation (5), retailers (3), e-commerce (3), packers (1)	Interview schedule	Job roles, job expectations, job skills expected, education, future HR requirements
Youth scan	Youth	120	Age group 18–25 years; OBC (45%); SC (27%); ST (11%); Others (11%)	Interview schedule	Educational levels, aspirations for current and future employment
Training institution scan	Training institution	8	Private (6), government (2)	Interview schedule	Potential and opportunities for logistics sector in the city

Three types of analysis: sectoral analysis, stakeholder analysis and competitor analysis were performed.

Findings of the Study

Sectoral Scan

The role of the logistics sector in the economic growth of a nation is crucial. It is only through logistics that movement of goods from the place of manufacturing to the place of consumption takes place. In this process, it facilitates integration between several economic actors from the producers to the consumers. The logistics sector engages in multiple services related to material handling, warehousing, packaging, transportation, shipping, inventory management, supply chain management, procurement and customs service. It acts as a trigger for economic growth cutting across several sectors (Bombay Chambers of Commerce & Industry, 2023; IBEF, 2014).

The logistics sector is also relevant from the employment perspective. As per the economic survey 2021, the Indian logistics sector provided livelihood to 22 million plus people. According to the report of the National Skill Development Corporation (NSDC), India will need around 28.4 million strong workforce in India’s logistics sector (KPMG, 2012). According to the report by TeamLease, about 3 million new jobs will be created in the sector by 2022. As per the study conducted by TeamLease, the potential jobs that were to be available in the logistics sector in 2022 were road freight (9.88 million), rail freight (0.22 million), waterways (1.35 million), air freight (1.10 million), warehousing (0.69 million), packaging (0.30 million) and courier services (0.36 million) (TeamLease, 2018).

According to the TeamLease study, employment in the logistics sector is expected to increase to 31 million by 2022. It is witnessing a growth of 7%–8% per annum, which is going to continue. The introduction of GST, dedicated freight corridors, e-commerce, development of multi-modal logistics parks are acting as a boost to the logistics sector. A separate Logistics division within the Ministry of Commerce and Industry and a Draft policy on Logistics are initiatives which are expected to boost the sector and employment (Hinduline Bureau, 2014).

Traditional patterns and approaches of sub-sectors are witnessing a change. Transportation sub-sector occupies half of the market space of the logistics sector. The relative shares held by various components in cargo transportation include road transport 60%, railways 30%, water transport 7% and shipment 1%. The growth of manufacturing, expansion of FMCG, e-commerce and retail sectors have contributed to the growth of the Indian freight sector. Road freight was expected to create 1.89 million incremental jobs. Rail freight will create 40 thousand jobs, waterways 45 thousand jobs and air freight 40 thousand jobs (TeamLease, 2018).

Warehousing has about 25%–30% market share within India’s logistics industry. Currently, a major part of the warehousing activities is largely being undertaken in the unorganised segment. The warehousing sector was expected to create 120 thousand incremental jobs by 2022 (Kinghtfrank, 2022). The warehousing market is expected to grow to Rs. 2,243.79 billion by 2026 (Shah, 2022). Warehousing is shifting from a ‘godown’-based approach to a provider of ‘modern services’.

Food processing and e-commerce have created demand in the packaging industry for packing material. The Indian packaging industry was the fifth largest and was expected to reach $32 billion by 2025 by witnessing an annual growth of 15% per annum for previous five years. The packaging sub-sector was expected to create 40 thousand jobs during the period 2018–2022. The Indian packaging market is expected to reach USD 204.81 billion in 2025 (Packaging Industry Association of India [PIAI]).

Demand for faster delivery has led to the emergence of express delivery in courier services. The courier sector was expected to create 60 thousand incremental jobs during the period 2018–2022. The Indian courier market is expected to reach Rs. 15.75 billion by 2028 (India Courier, Express, and Parcel (CEP) Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030. https://www.mordorintelligence.com/industry-reports/india-courier-express-and-parcel-cep-market).

Freight forwarding involves the movement of goods across national borders. India exports goods such as precious metals, vehicles, machinery, pharma products and clothing. It has shifted from a provider of ‘freight arbitrage’ and ‘custom brokerage’ services to ‘end-to-end’ solutions. Indian freight sector is expected to reach USD 545 billion by 2025 (Indian Freight and Logistics Market, 2024).

E-commerce has witnessed growth with an increase in digital payments and e-buying. Each of these trends has led to creation of new employment opportunities. The Indian e-commerce value is expected to reach USD 325 billion by 2030 (India’s e-commerce market to hit $325 billion by 2030, 2024).

Although technological breakthroughs, such as the Internet of Things (IoT), Telematics, Blockchain, and Robotics, threaten the current jobs, it also creates new opportunities for work.

Employer Scan

In relation to logistics practices, it was found that the manufacturing sector did not have logistics teams of their own except in the case of the larger firms, which had a specialised logistics team. Both larger and smaller firms contracted out a larger part of logistics to third-party logistics firms. Third-party logistics firms were engaging in contract logistics with manufacturing firms and were engaging in a variety of services which included warehousing, transportation, freight forwarding, etc. To perform these roles, the TPL firms had job positions related to logistics and supply chain management, customs brokerage, warehousing, import/export, freight forwarding, etc.

The current sub-sector-wise positions in warehouses included warehousing executives/managers, data entry operators, packaging supervisors, etc. The freight forwarding companies had positions for import/export documentation, customs brokerage, freight operations—air & sea, sales & marketing and client relationships. The positions in transportation were related to fleet management, loading supervision and data entry. The typical positions in retail operations were related to logistics and supply chain management, store operations, procurement, sales, customer relationships, inventory analysis, etc. In e-commerce, there were positions related to the management of hub operations and delivery of materials in e-commerce firms.

For the entry-level positions in logistics management, warehousing, freight, fleet operations, packaging, data entry, documentation, a minimum qualification of 10+2 was sufficient. In specialised functions such as import/export which requires knowledge of regulatory compliance, a minimum graduation was expected. This was similar in the case of functions such as supply chain positions, sales which required more sectoral knowledge and skills. In these cases, an MBA was expected.

Employers preferred functional skills and experience in logistics and supply chain management, procurement, warehousing, transport and fleet management, freight forwarding, customs brokerage, courier and cargo management, inventory management, etc. for appointment to positions. For frontend operations, such as operations executive and logistic coordinator, ability to handle the clients, business negotiations and communication skills were expected. For backend operations, computer skills in MS Office were expected.

The recruiters followed multiple strategies for recruitment. Both paper and online advertisements for middle and senior positions were adopted. Sometimes consultancy agencies were engaged. The practice of recruiting through referrals was seen in case of lower positions.

The future jobs mentioned were related to both general and high-end specialisation. The specific areas with job demand in the logistics sector include logistics, supply chain operations, transport logistics, warehouse operations, customs brokerage, freight forwarding and retail chains. In high-end, specialities like dangerous goods, temperature-controlled goods, chemicals and perishable goods, and cold storage were mentioned.

Analysis of job sites on the potential job opportunities in various sub-sectors of logistics is given in Table 1.

Table 1.

Nature of Jobs in Different Sub-sectors.

Customs brokerage	Import services: Expert guidance on Indian Customs Act, tariff classification, import customs clearance, ATA CARNET/exhibition, in-bond–ex-bond clearance, inventory, clearance under EOU/SEZ/EPCG/advance license/WPC, expertise in providing clearance for pharmaceutical/temperature control goods and reference standards chemical for R&D, clearance from plant quarantine office for import of pets and other animals Export services: Export clearance under various schemes, obtaining drug license and NOC for importation of chemicals, drugs, vaccines from drug controllers offices, clearance from the phytosanitary office for import of goods, post-shipment guidance and services including duty drawback, refunds and redemption of bank guarantee on completion of export obligation under various schemes, carting/receiving goods, inspection of shipments, stuffing and de-stuffing at ports, ICD/CFS and at customers warehouse/factory
Freight forwarding	Air freight services, ocean freight services, cargo booking, consolidation services, warehousing services, bonded trucking, documentation, export forwarding insurance, letter of credit consultation, GSP/SAAPTA certification, pickup and delivery, traffic coordination, dangerous goods logistics and perishable goods logistics. Registrations of various import and export licenses, project import contracts, registration of 100% export-oriented units (EOU & SEZ), bonding and de-bonding process of cargo and premises, new/additional premises licensing process, full-service packages for STPI, SEZ units along with manpower, SVB finalisation process, inter-unit transfers, temporary removal of goods for exhibitions/demonstrations, etc.
Transport	Transport logistics, delivery, dispatch, door-to-door services, and parcel and packages services, reverse logistics, documentation of freight, export/import clearances etc., multi-modal tracking and GPRS. Transportation: Surface assisted (powered with own fleet of closed body vehicles), train assisted and air assisted. Trucking: normal trucks, open trucks, Taurus, normal tailors, Beavers, Hippos and Volvos having a capacity up to 200 metric tonnes, full truckload and less than truckload
Warehouse	Warehouse management – all inbound and outbound activities (unloading/storage/protection/distribution). Inventory management, order processing management, Transport management and warehouse invoicing. Supply chain management (SCM), cargo and transport industry, loading, unloading, data entry generation of PRS, DRS, manifest, etc.
Retail chains	Logistics and supply chain management Store operations, procurement, project management Sales, finance and accounts, marketing, retail and sales management Customer relationship management
Specialised services	Dangerous goods logistics/bonded warehouse logistics/free trade warehousing logistics/chemical logistics/perishable goods logistics and non-vessel owning common carriers (NVOCC): A freight forwarder, forwarder or forwarding agency to organise shipments from the manufacturer to a market, customer or final point of distribution. Customer invoice, waybill, dangerous goods handling, liquid and flammable goods, vehicle management, docket invoice, etc. 3PL services on airfreight capabilities/transportation: surface assisted (powered with own fleet of closed body vehicles), train assisted and air assisted/warehouse management. All inbound and outbound activities (unloading/storage/protection/distribution), inventory management, order processing management, transport management and warehouse invoicing

Source: Based on analysis of job sites such as Naukri.com; monsterindia.com etc., and discussions with logistics players.

The top 20 job roles with high potential opportunities in Hyderabad that were arrived at from the study are shown in Table 2.

Table 2.

Estimations of 20 Job Positions in Logistics Sector.

Sl. No.	Sector	Job Roles	Positions in 2019	Positions by 2029	Incremental Positions
1	Road freight, rail freight, warehouse and third-party logistics	Data feeders	17,426	29,197	11,771
2	Road freight, rail freight and third-party logistics	Consignment booking assistant	16,330	27,850	11,520
3	Road freight, third-party logistics, warehousing	Executive – supply chain management	15, 016	26,242	11,226
4	Road freight and third-party logistics	Executive (fleet operations)	15,300	26,309	11,009
5	Road freight, third-party logistics, warehousing,	Manager – supply chain management	7,684	13,060	5,376
6	Road freight and third-party logistics	Transport coordinator	5,100	8,770	3,670
7	Road freight and third-party logistics	Fleet manager	5,100	8,770	3,670
8	Air cargo, freight forwarding and customer clearance, warehousing	Logistics specialists (including dangerous goods, temperature-controlled goods, perishable goods)	2,976	5,885	2,909
9	Air cargo, freight forwarding and customer clearance	Customer clearance executive – import	2,976	5,885	2,909
10	Air cargo, freight forwarding & customer clearance	Customer clearance executive – export	2,976	5,885	2,909
11	Air cargo, freight forwarding & customer clearance	Cargo screeners – security	1,488	2,943	1,455
12	Air cargo, freight forwarding and customer clearance	Cargo assistants	1,488	2,943	1,455
13	Air cargo, freight forwarding and customer clearance	Documentation executive – freight forwarding import	1,488	2,943	1,455
14	Air cargo, freight forwarding and customer clearance	Documentation executive – freight forwarding export	1,488	2,943	1,455
15	Air cargo, freight forwarding & customer clearance	Documentation executive – customer clearance import	1,488	2,943	1,455
16	Air cargo, freight forwarding & customer clearance	Documentation executive – customer clearance export	1,488	2,943	1,455
17	Air cargo, freight forwarding and customer clearance	Marketing and sales executives	1,488	2,943	1,455
18	Warehouse	Warehouse supervisors (receiving, dispatch, quality assurance, inventory, loading, unloading, picking, knitting, binning, packing, labelling)	5,480	6,737	1,257
19	Warehouse	Warehouse executives (administration, finance, HR)	1644	2021	377
20	Warehouse	Warehouse executives (ERP data analysis, receiving/dispatch, claims coordinator)	1644	2021	377

Source: Based on analysis of discussions with logistics players.

The employer agencies were willing to recruit trained candidates. The agencies were not particular about certifications by university/industry associations/NSDC or other such larger certification agencies. It was felt that a simple certification by a credible agency should be sufficient. Many of them were open for certification by Tech Mahindra. A minimum 10+2 qualification was expected. The potential courses in which training was sought were on logistics, supply chain management, retail chains, sales management, dangerous/perishable goods logistics, cold storage management, etc.

Youth Scan

The youth scan was conducted with 120 educated youth consisting of 32% Intermediate educated and 49% with qualifications higher than Intermediate; 89% were from Schedule Caste (SC), Scheduled Tribe (ST) and Other Backward Caste (OBC) communities. None were fully employed. The annual income was less than Rs. 30,000 per annum. They were on the lookout for betterment of education and employment status.

The preference was for general education in commerce, arts, science, engineering and management streams. The choice for skill education was limited; 66% preferred to join skilled workforce and were willing to join skill courses, provided the same was made affordable and accessible; 70% felt they lacked adequate job skills, which they believed could be addressed through educational qualification and acquisition of functional, managerial, ICT and soft skills. About two-fifths of the youth aspired for an entry-level salary of Rs. 15,000–25,000 and another two-fifths between Rs. 25,000–40,000.

Exposure of youth to skills training was limited with only one-third having undergone some form of skill training such as computer operations. Regarding choices for skill training, preference was given to courses in software and engineering streams. About 10% preferred logistics; 89% preferred undergoing skill courses and 62% wanted a part-time course; 50% of the youth preferred courses of one- to three-month duration and 15% of three- to six-month duration. In relation to the ability to pay, about 22% stated that they could pay about Rs. 5,000–10,000; 20% were willing to pay between Rs. 10,000 and 25,000. About 77% wanted certification of courses from external bodies for the skill courses.

An understanding of the logistics sector was lacking. Only 28% knew about the sector. It was understood in terms of courier services (21%), transportation-related sector (15%) and production 12%.

On choices of preference for employment in the logistics sector, about two-fifths (38%) preferred employment in manufacturing-based logistical operations; one-fourth (24%) preferred e-commerce-based operations; one-sixth (16%) preferred railway-based cargo operations, 9% air-based cargo operations and 3% road-based cargo operations. About one-eighth (12%) preferred employment in packaging services, one-tenth (10%) in warehousing operations, 3% in courier services and 2% in distribution services.

Youth scan indicated that though there was little awareness of the sector, there was a willingness to join the logistics sector, provided that skill training is made affordable and accessible and is sure to provide jobs with adequate salaries. However, there was also a need for efforts to attract youth to the sector, which was seen in the training institution scan.

Employer Requirement Versus Youth Aspirations

		Employer Requirement	Youth Aspirations
1	Preferences for logistics-based employment	Employers looking out for logistics-based positions	Low aspirations for logistics as a first choice (10%) for employment among youth – higher preference for non-logistics-based service industry
2	Educational levels	Employers willing to recruit 10+2 in transportation, third-party logistics, warehousing and graduates in SCM, customs clearing, freight forwarding and e-commerce	High aspiration for attaining higher educational levels (19% till Intermediate), 81% Intermediate and above
3	What matters in jobs	Job-related knowledge, skills, and attitude towards work – willingness to stretch as per the needs of the job	Stability in employment and standing in society – social status (35%), Job Security (36%)
4	Job positions	Employers need people for positions such as logistics executives, warehousing supervisors, warehousing executives, operations executives, supply chain management executives and import/export documentation	Difficulty in articulating job positions related to logistics by youth but positions related to customer support (57%), clerical positions (33%) were mentioned
5	Salary structures	Employers prefer to hire at Rs. 10,000–15,000 for entry-level positions	Aspirations for a larger number of youth were for salaries (Rs. 15,000–40,000), which is equivalent to mid-level positions in the industry
6	Type of skills expected	Functional skills, ICT skills, ability to handle client relations	Technical and job-specific skills, business management skills, information and communication technology skills
7	Recruitment based on skill training in logistics	Employers willing to recruit trained candidates in logistics and SCM positions, particularly in manufacturing, freight forwarding, retailing, e-commerce sub-sectors	High willingness to undergo skills training in logistics (89%) among youth provided that it leads to employment
8	Duration of the course	Looking for candidates with 15–90 days training	50% preferring up to 3-month courses and 15% 3- to 6-month courses
9	Certification and accreditation	Not particular about certification by accreditation bodies provided training by independent institutes is of standard quality	About two-thirds wanted certification with accreditation by technical education bodies
10	Type of course	Certificate/diploma level course sufficient (full-time or part-time)	Certificate/diploma course sufficient but should be part-time (62% part-time)

Source: Based on discussions with youth and employers in the logistics industry.

Training Institution Scan

The training institution scan covered eight players, six private and two government players. The leading institutes running classroom-based skill development courses in logistics in Hyderabad city were Transworld Group and Skill One. They offered Diploma/Graduate Diploma and PG Diploma in International Logistics Management and Supply Chain Management. There are also smaller streams of courses of shorter duration in Import/Export, Air/Sea Cargo and Customs and Excise, Warehousing and Inventory Management, Procurement Management, Channel Management and Production and Operations Management. The basic qualification is 10+2. The course fee ranges from Rs. 28,000 to 35,000. External certifications are provided by bodies such as US Board, Professional Evaluation and Certification Board. Trainees have been placed both within India and abroad.

Indian Institute of Materials Management runs Post-Graduate Diploma level courses in Materials Management and Supply Chain Management. These are AICTE-approved and offered in a distance education mode with weekend classes. It also runs Diploma courses in Supply Chains and Materials Management. The certifying agencies include the International Trade Centre, Institute of Supply Chain Management, USA and International Federation of Purchasing Supply Chain Management, UK. The fee is in the range of Rs. 20,000–50,000. Mostly, experienced staff aiming for professional upgradation undergo courses from these institutes.

International Institute of Import and Export Management runs two programmes on Shipping and Logistics Management and a programme on import and export. The courses are offered in a regular mode. They are either offered for four continuous days or six weekends. The course fee is about Rs. 17,000 and Rs. 25,000 for four continuous days and weekend classes, respectively. Those primarily aiming for the upgradation of their knowledge undertake the courses.

Trade-wings Institute of Management offers Diploma in Air Cargo Management and Diploma in Logistics Management. IATA Cargo Introductory course and IATA Supply Chain and Transport course are also offered. An MBA course in distance education on Logistics and Supply Chain Management is also conducted. The course costs about Rs. 90,000. The trained candidates are offered jobs in cargo/courier agencies, import-export houses, cargo C & F agencies and handling agencies and customs house agencies. These are run in e-learning mode.

Telangana Jagruti Skills offers courses on Consignment Booking Assistant, Consignment Tracking Executive and Documentation Assistant. Currently, the course on Documentation Assistant is being offered in about 40 branches across the state under Deen Dayal Upadhyaya Grameen Yojana. The trained candidates are being placed in agencies such as courier companies and transport companies with a salary of Rs. 8,000–9,000.

MYS Foundation was running courses in relation to (a) logistics operations, (b) warehouse management, (c) storekeeping, (d) retail operations, (e) distribution management, (f) shipping and logistics, (g) sales Logix CRM, (h) supply chain management, (i) Logistics – import/export and supply chain EXIM. However, these have been stopped due to financial constraints. Currently, only 3- to 7-day trainings are conducted based on needs emerging from clients.

Central Training Establishment runs courses on dangerous goods. Those wanting to build exposure to dangerous goods as part of professional exposure and upgradation undergo the 6-day courses. The staff from airlines, third-party logistics and freight forwarding agencies undergo training on the same.

Competitor Analysis

Training Institute	Courses	Certification	Faculty and Teaching	Duration	Price	Placement
TWG International	Wide range of courses (logistics and SCM)Both comprehensive and individual specialisationsCourses targeting whole logistics and SCM sector	International certification	ClassroomLimited facultyExpert faculty with industry exposure	Medium-term	Competitive price	High level of placements
Skill One Institute of Professional Education	Wide range of coursesBoth comprehensive and individual specialisationsCourses targeting whole logistics and SCM sector	International certification	ClassroomLimited facultyExpert faculty with industry exposure	Medium-term	Competitive price	High level of placements including for abroad positions
Indian Institute of Materials Management	Wide range of coursesLong-term and medium-term courses	International certificationAICTE approved for long-duration courses	Distance education with contact classes for regular coursesClassroom based for professional upgradation coursesWide network of Professional ExpertsLarge pool of Faculty	Medium-term and long-term	Competitive price	Low placement assistance
Indian Institute of Import and Export Management	Focused courses targeting logistics aspects of international trade/import-export	Certification from Ministry of Commerce and Industry-associated body	Classroom-basedWide network of professional expertsLarge pool of faculty	Short-term and medium-term	Competitive price	Low placement assistance
Trade Wing Institute of Management	Courses on cargo particularly targeting the aviation industryLong- and medium-term courses	Certification from the institute itself directly and through IATA	Classroom-basede-learning modeLimited facultyFaculty with strong industry exposure	Medium-term and long-term	Higher price for long-term courses	Placement assistance with encouraging results
Telangana Jagruthi Skills	Limited range of courses	Certification from Sectoral Skills Council	Classroom-basedDevoted faculty for training centre	Short term	No fee	Placements provided
MYS Foundation	Short term nature of courses	Certification from SETWIN/sponsored agency	Classroom-basedLimited faculty	Short term	Sponsored by SETWIN/employer	Placements provided

Source: Based on discussions with training institutions in the logistics sector.

Training institutes engaged in logistics and supply chain skill logistics have been able to successfully place the candidates. However, they find it difficult to mobilise the youth. The perception of lower social prestige associated with a logistics and supply chain management job is said to be one of the reasons.

Scope for Logistics

Cutting across the multiple scans, it is clear that logistics and supply chain management-based positions are available in the city. Employer organisations are looking out for recruitment for positions in the logistics sector. Training institutions also have been able to place candidates in relevant job positions. However, a challenge being faced in the training scenario is attracting the youth to the training courses. There was limited awareness among youth on opportunities in the logistics sector. The misperception of low social prestige being associated with the sector also results in lower attraction to the sector. Hence, given the lower awareness on the sector, there is a need to create awareness on opportunities in the sector. Social mobilisation and awareness building of opportunities in the sector were seen as critical for success of training intervention.

It was seen that courses primarily around logistics and supply chain management could be started. However, a demand around the same needed to be created. Strategies combining awareness generation and social mobilisation, making training relevant for the current sectoral needs and an effective post-training system in place can result in effective training. An integrated approach could meet the needs from the perspective of business for the sector as well as employment for youth.

	Aspects	Recommendation
1	Pre-training
	Awareness sessions	Awareness sessions on potential opportunities in the overall logistics sector and specific sub-sectors to be conducted Awareness sessions to be conducted at Intermediate colleges, Degree level colleges etc. Sessions to be also conducted at youth-based events such as youth conventions/youth meets, etc. The sessions can also be held in urban slums with support from Ward members and community-based organisations and association with National Urban Livelihood Mission
	Social mobilisation	Social outreach to youth through educational institutions, community-based organisations, employment exchanges, youth groups, etc.
	Enrolment drives	Enrolment drives during academic year ends during Intermediate/Graduate level education
2	Trainings
	Type of courses	6-month courses on Logistics and Supply Chain Management Shorter courses of 1-month duration for meeting needs of specific sub-sectors such as warehouse, fleet management and export/import management
	Curriculum development	Curriculum to be developed through engaging specialist experts incorporating the latest requirements as needed in the sector
	Integrated skills	Courses to focus primarily on functional skills Adequate emphasis to be also placed on management skills, information and communication technology skills and language and communication skills
	Course duration	Course duration of 1 month for sub-sector-specific courses to 6 months duration for logistics/supply chain as a package
	Fee	Rs. 20,000–25,000 (with partial financial support)
	Faculty	Faculty to be drawn from existing logistics-based institutes such as Indian Institute of Logistics, Indian Institute of Materials Management and Indian Institute of Import and Export Management
	Industry collaboration	Industry collaboration to be built up for internship, apprenticeship, practical exposure and job placements
	Institutional linkages	Institutional linkages to be built up with the Logistics Sectoral Council
	Employer	Tie up with previous employers to be maintained for sustaining placement activities
	Certification	Both internal and external certifications to be provided
3	Post training
	Placements	Building relationships with top employers Placement drives through invitation of top employers
	Follow-up support	Counselling services to trainees for a year beyond placement

Source: Based on discussions with various youth, training institutions in the logistics sector and employing institutions in the logistics sector.

Implications for Future Research

The study looked at youth who had studied minimum of Intermediate education, unlike skill programmes which usually target those who have studied between 5th and 8th standard. The key finding was that the ones with minimum Intermediate and higher education showed little interest in pursuing employment in the logistics sector. The reasons for low pursuance of the same were due to low awareness of potential job opportunities, low interest in the logistics sector, perception that the logistics sector is associated with lower social prestige. This broadly seems to indicate that as youth acquire higher levels of education, there is a perception shift in what is considered as employment with higher social prestige as against one that is not.

This has implications for the skills development programme. The skill development programme is mainly focused on setting and achieving targets for skill training and placement. It is assumed that the availability of employment opportunities in specific sectors and skilling ecosystems could lead to more employment absorption in the same. However, limitations such as low awareness of opportunities and higher education levels, which increase aspiration levels, could result in different situations. Even in the disadvantaged communities, with an improvement of education levels among the disadvantaged youth, the aspiration levels of youth grow both in relation to the nature of job and salary expectation. It is here that it is important to note that skill programmes need to give adequate emphasis on youth aspirations. Target-based approaches may not always necessarily work if they are not tuned to youth aspirations. Moreover, the acquisition of additional years of education automatically results in higher aspirations.

It is important to look into what shapes the perception of low social prestige associated with certain job roles in specific sectors. Education and its link with youth aspirations need to be looked into. Unless the skill programmes work at the level of bringing a shift in thinking in what is considered to be in tune with social prestige in line with higher educational levels, the skill programmes for the slightly better educated might fail.

It is also important to consider the implications of AI in the future of entry-level jobs in the logistics sector. AI would have implications in the future of entry-level manual labour jobs in warehouses and transportation, like basic picking and packing roles. With the growth of AI and Robotics, there could be increased demand for workers with technical skills to operate and maintain AI/Robotic systems in logistics facilities. Entry-level workers may need more digital literacy and basic tech knowledge; there would be growing need for workers who can operate these systems in manufacturing and logistics, where robots manage assembly lines and AI systems optimise supply chains (Shah S., AI Manual Labour: How AI Is Reshaping Work and Skills Demand). Skills to work alongside AI systems, even in traditionally manual roles, for example, drivers who know how to understand and navigate Google Maps may be preferred (Shah S., AI Manual Labour: How Automation is Transforming Jobs and Boosting Efficiency). AI could create new entry-level job categories focused on human-AI collaboration and oversight of automated systems (Holzer, 2022). Continuous upskilling and reskilling will become more important for entry-level workers to adapt as AI transforms logistics operations.

There is also a need to consider factors to reduce employee attrition in the logistics sector. Since the job security, payment structures and growth prospects in the logistics sector are considered low, attrition rates are higher. For those aspiring to enter the logistics sector, there is a need to provide them with a clear career progression, paths, skills development opportunities and improve onboarding and initial training to increase early engagement (Turner, 2023). Competitive compensation and benefits and a positive work culture with a recognition programme can increase retention. Mentoring programmes and regular employee feedback could build ownership within the work organisation. Training of employees in upgrading their skills could keep them upgraded on a continuous basis and encourage them to continue (Harver Team, 2021).

Conclusion

It can be concluded by stating that the logistics sector has employment opportunities in the city. There are many potential jobs in the logistics sector. There are also training institutions which exist that provide guaranteed placements. However, there is low awareness on its potential scope for employment. The social prestige associated with employment in the logistics sector tends to be low among youth. It does not seem to be matching with the aspirations of youth from disadvantaged communities, who have completed Intermediate and higher education. As a result, there is low demand despite the availability of employment opportunities. This has implications for skills policy in the country. While it rightly emphasises on the need to strengthen the skilling ecosystem and meet targets, this must be accompanied by building awareness on employment scope. A sense of building social prestige associated with specific sectors such as logistics needs to be built up. The entry of AI presents a challenge but could also be an opportunity if AI skills in the logistics sector are picked up by the youth.

Footnotes

Declaration of Conflicting Interests

The author declared no potential conflicts of interest with respect to the research, authorship and/or publication of this article.

Funding

The author received no financial support for the research, authorship and/or publication of this article.

Note

ORCID iD

Navin Thumakunta

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