At the Confederation of Indian Industry’s Mystic South Global Linkages Summit 2025 in Chennai, SN Subrahmanyan, Chairman and Managing Director of Larsen & Toubro (L&T), expressed concerns regarding the decreasing mobility of construction laborers in India. He observed that many workers are now less inclined to relocate for job opportunities, a trend he attributes to the availability of welfare schemes and a growing preference for local comfort.
L&T, a prominent Indian multinational conglomerate, employs approximately 250,000 staff members and 400,000 laborers at any given time. Subrahmanyan emphasized that while attrition among staff is a concern, the diminishing willingness of laborers to move for work poses a more significant challenge. He stated, “Labor is not willing to move for opportunities… Maybe their local economy is doing well, maybe it is due to the various government schemes & direct benefit transfers available to them, but they are not willing to move.”
The Indian government has implemented various welfare initiatives aimed at enhancing the socio-economic conditions of its citizens. Programs like the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) provide rural households with up to 100 days of guaranteed wage employment annually. Such schemes aim to improve livelihood security and reduce poverty in rural areas.
While these initiatives have been instrumental in uplifting rural communities, they may also influence labor mobility. With assured income sources within their localities, workers might feel less compelled to seek employment opportunities elsewhere. This shift can impact industries that rely on migrant labor, such as construction and infrastructure development.
Subrahmanyan also noted a similar reluctance to relocate among white-collar professionals. He recounted, “When I joined L&T as a graduate engineer, my boss said if you are from Chennai, you go to Delhi and work. But today, if I ask a person from Chennai to work out of Delhi, he says bye. It’s a different world of work today, and we have to see how to make HR policies flexible.”
This observation underscores a broader cultural shift in the workforce, where both blue-collar and white-collar employees prioritize personal comfort and local opportunities over relocation. Factors such as improved local economies, family considerations, and lifestyle preferences contribute to this trend.
To address these challenges, companies like L&T have established dedicated human resources teams focused on labor mobilization, recruitment, and deployment. Despite these efforts, the task of hiring workers willing to relocate remains complex. Organizations may need to explore innovative HR policies and incentives to encourage mobility among employees.
The interplay between welfare schemes and labor mobility presents a nuanced scenario. While welfare programs are essential for social equity and economic stability, they may inadvertently affect the availability of labor for certain industries. Balancing the benefits of these schemes with the needs of sectors dependent on migrant workers is crucial for sustainable economic development.
In conclusion, as India continues to advance its welfare initiatives, it is imperative to consider their broader implications on labor dynamics. A comprehensive approach that harmonizes social welfare with the demands of various industries will be vital in fostering inclusive and balanced growth.
