Israel's war on Iran to hit Indian workforce
Israel opening a warfront with Iran will impact workforce mobility from India to many parts of the Middle East. Recruitment companies with clients in the IT, energy, construction and retail sectors estimate a drop in demand for fresh workforce as the crisis escalates. Some manpower companies had calls from candidates on probable changes in joining dates and the hiring firms have held meetings since Friday.
Mint has learnt that both blue and white-collared workforce who head to the region every year for opportunities will be reluctant to relocate to even bordering countries that are yet to face the heat.
'We currently have 35 executives from mid to senior management levels scheduled to join roles across Kuwait and other Middle Eastern countries. These positions are primarily within the energy sector, including oil field operations and a significant number of these professionals are US nationals," said Manish C., managing partner, Greentree Advisory Services.
Also read: Javier Blas: An Israel-Iran war may not rattle the oil market
The firm's clients are in the banking and energy sectors, amongst others. 'Since Friday, we have received several calls from candidates expressing concern, particularly those relocating with their families. The hiring companies have assured us that they are closely monitoring the situation and will keep all stakeholders informed," the managing partner told Mint.
In the early hours of Friday, Israel attacked Iran's nuclear bases and called it Operation Rising Lion. Until now, the Middle East crisis has largely involved Israel's attack on Gaza. The external affairs ministry in its statement noted that it was 'monitoring the evolving situation, including reports related to attacks on nuclear sites".
A steady stream of blue- and white-collar workers regularly head to countries like Kuwait, Bahrain, Qatar, the United Arab Emirates and Oman, which share maritime borders with Iran. 'Our Missions in both countries are in contact with the Indian community. All Indian nationals in the region are advised to exercise caution, stay safe and follow local security advisories," the external affairs ministry said in a statement on its website.
Also read: Escalating Israel-Iran conflict to keep markets on boil in near term
'We hire IT employees from India for the Middle East and also from Lebanon and Egypt for the Middle East region. We are focusing on this region extensively, but now if the war escalates and spreads to nearby areas, then our hiring gets impacted," said Anshuman Das, chief executive and co-founder of Careernet, a talent solutions provider.
According to government data from July 2024, there are 92,58,302 skilled, semi-skilled and unskilled labourers from India employed in various sectors in the Middle-Eastern countries of Bahrain, Kuwait, Oman, Qatar, United Arab Emirates and Saudi Arabia. In fact, Israel too has recruited thousands of skilled workers from India over the last couple of years.
Genius Consultants, which caters to retail and construction clients in the Middle East, estimates an immediate hit to the number of workers accepting offers. 'We estimate a 35% drop in the hiring numbers in the UAE region," noted R.P. Yadav, chairman and managing director of the recruitment firm.
Also read: Who is Gen. Abdolrahim Mousavi? Iran names new Army chief after Israeli strikes kill commander: 'Declaration of war…'
Ironically, the Middle East and Russia are some of the prominent regions that attract Indian workers because the clients often pay higher compensation than their Indian counterparts. In fact, this exodus has hit Indian construction and real estate firms, which have flagged a shortage of skilled and unskilled workers.
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