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Labour shortages, rising attrition: L&T chairman SN Subrahmanyan highlights challenges in construction sector
Larsen & Toubro's Chairman and Managing Director, SN Subrahmanyan, recently pointed out an increasing challenge in India's construction industry—labour shortages caused by workers' unwillingness to relocate.
Larsen & Toubro's Chairman and Managing Director, SN Subrahmanyan, recently pointed out an increasing challenge in India's construction industry—labour shortages caused by workers' unwillingness to relocate, while speaking at CII South Global Linkages in Chennai.
Subrahmanyan further said that although construction is vital for national development, the industry is facing challenges due to a shortage of available workers.
He highlighted out that while migration remains a concern in several countries, India is dealing with a unique issue where many laborers are reluctant to relocate for work. This is creating growing challenges in carrying out large-scale infrastructure projects crucial for national development, including roads and power plants.
Labours unwilling to move
Subrahmanyan highlighted that L&T has a workforce of nearly 4 lakh laborers. However, due to high attrition rates, the company effectively recruits around 1.6 million workers each year. Recruitment and mobilization strategies have undergone significant changes, with digital communication replacing traditional methods.
For instance, carpenters now receive job notifications via messages, enabling them to choose whether to accept the offer. Despite these advancements, assembling the required workforce remains a major challenge.
“For employing 4 lakh labourers, we employed 1.6 million labourers. We have a database of 4 million people with us, their names, their Jan Dhan bank account, their Aadhaar number, the village they come from, their skillsets. There is a site in the western part of the country, where I am supposed to mobilise 50,000 labourers. I need people, but they are not willing to come,” Subrahmanyan was quoted as saying.
He linked laborers' reluctance to move to various factors like government welfare programs like Jan Dhan accounts, direct benefit transfers, the Garib Kalyan Yojana, and the MGNREGA scheme. These initiatives offer financial security, lessening the need for workers to migrate in search of jobs. Moreover, many prefer to remain in familiar surroundings and avoid the challenges associated with relocation.
Similar trend among engineering graduates
Beyond the construction workforce, Subrahmanyan observed a similar trend among engineering graduates, especially in fields like information technology. Unlike previous generations, many young professionals today are reluctant to relocate for work.
Drawing from his own experience, he recalled a time when engineers were expected to move to different cities as part of their careers. However, the current workforce often refuses such relocations outright, complicating talent distribution across locations.
This shift is especially noticeable in IT, where employees increasingly favor remote work over conventional office environments. He noted that senior leaders, particularly from older generations, often find it difficult to grasp this changing work culture.
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Business NewsIndustryLabour shortages, rising attrition: L&T chairman SN Subrahmanyan highlights challenges in construction sector
First Published:11 Feb 2025, 08:47 PM IST
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