A confluence of pandemic-spurred behavioural changes, availability of various welfare schemes, and a sudden spurt in infrastructure projects has led to a decline in labour migration, resulting in a shortage of workers across industries, according to industry executives and HR experts.
The executives echoed the view of Chairman and Managing Director of Larsen & Toubro (L&T), SN Subrahmanyan, who recently triggered a row over his remarks at a Confederation of Indian Industry (CII) event on relocation and job migration. “(Labourers) don’t want to move from rural places preferring comfort,” he was quoted as saying in a media report. Days after his comment, Supreme Court Judge B R Gavai said, “Unfortunately, because of freebies, like Ladki Bahin’ and other schemes, declared during election time, people are not willing to work.” The apex court was hearing a matter concerning the right to shelter of homeless persons in urban areas.
Vimal Kejriwal, managing director and CEO of KEC International, in a recent call with analysts, noted that labourers earlier worked at a site for close to a year before availing their annual leave. “…And, then we will pray that he will come back,” he said, adding that labourers are leaving within three months now, “and not turning up”. Kejriwal said the company may have posted better earnings in the quarter gone by if not for the labour shortage, among other factors.
Basavarajappa C, Head — Human Resources, Sterling and Wilson Renewable Energy Limited (SWREL), said the workforce could now secure employment near their hometowns with development gaining traction and more job opportunities coming to rural areas.
“Social and family connections are important — workers often wish to remain near the people supporting them,” said Kartik Narayan, CEO (staffing) at TeamLease, a staffing solutions firm, adding the phenomenon has aggravated that post-Covid, and the trend is now reflecting across multiple industries. Narayan noted that increasing living expenses and lack of job security in urban areas often outstrip the advantages of moving.
This social behaviour has coincided with a sudden spurt in infrastructure projects, after a period of lull, said Amit Uplenchwar, director at Kalpataru Projects International. “The transmission and substation segment for three, four years prior to a year ago was not there, and now suddenly they have given out many projects not just to us, but many other big players,” said Uplenchwar.
Many of the Indian engineering firms, including L&T, at Rs 5.6 trillion, are busy executing order books which are at an all-time high in value terms.
Uplenchwar, however, said it was not so much a relocation problem as the availability of labour. “Large popular states like UP, and Bihar are themselves on a journey of industrialisation with so many opportunities being created. Obviously for a labourer, if you are able to get a job in your own state with the same remuneration, why would you go outside,” Uplenchwar said, adding that the problem is only going to get worse, a view that many players possibly agree with.
KPIL has its own six academies where it is skilling people across various trades. Other big players in the industry are collaborating at diploma levels to skill students in their desired fields while offering them internships during the course. “The idea is to eventually meet shop-floor requirements through these tailored diploma students, while the engineering school freshers could be hired and trained for higher roles,” a senior HR executive from an engineering firm, said earlier.
Narayan said some government schemes could help ease the current relocation and mobilisation concerns. “One Nation One Ration Card (ONOR) guarantees access to subsidised food grains from anywhere in India, while migration corridors and the National Migration Support Portal are meant to enhance access to jobs, housing, and social services for migrant workers,” he said.
 "Welfare schemes and rural jobs fuel labour crisis, say industry executives")
