L&T chairman on new job market reality: Now, techies and even labourers don't hesitate to say goodbye

economictimes.indiatimes.com:

SN Subrahmanyan, recently highlighted a growing challenge in India’s construction sector—labour shortages due to workers' reluctance to relocate. Speaking at the CII South Global Linkages summit in Chennai, he pointed out that while migration is a pressing concern in many parts of the world, India faces a unique problem where many labourers are unwilling to move for work. This, he explained, is making it increasingly difficult to execute large-scale infrastructure projects essential for national development, such as roads and power plants.

Subrahmanyan emphasized that L&T employs nearly 4 lakh labourers, but due to high attrition rates, the company effectively hires around 1.6 million workers annually. Recruitment and mobilization methods have evolved significantly, with the company now reaching out to workers via digital communication rather than traditional channels. For example, carpenters are notified about new job opportunities through messages, allowing them to decide whether to accept the offer. Despite these changes, mobilizing the necessary workforce remains a massive challenge.

Why are the labourers unwilling to move?

SN Subrahmanyan attributed the reluctance of labourers to several factors, including government welfare programs such as Jan Dhan accounts, direct benefit transfers, the Garib Kalyan Yojana, and the MGNREGA scheme. These initiatives provide financial stability and reduce the urgency for many workers to leave their hometowns for employment. Additionally, a preference for staying in familiar environments and avoiding the hardships of relocation has contributed to the issue.