Reluctance to move, welfare schemes add to labour shortage: L&T MD Subrahmanyan
Feb 11, 2025, 21:04 IST
Chairman and managing director of Larsen and Tourbo on Tuesday said that people are unwilling to work because of the benefits offered by welfare schemes. There has been a steep increase in labour shortages across the construction industry. It is an essential sector for the growth and development of any nation and without the human resource, it struggles to improve.
Larsen & Toubro (L&T) is currently grappling with a significant manpower shortage, with over 45,000 positions vacant across its various sectors. The company's Engineering, Procurement, and Construction (EPC) division faces a deficit of approximately 25,000 to 30,000 laborers, while its Information Technology and IT-enabled services segment is short of about 20,000 engineers.
L&T's Chairman and Managing Director, S.N. Subrahmanyan, attributes this shortage to several factors:
Demand for Specialized Skill Sets: There's an increasing need for specific skills that are currently scarce in the market.
Accelerated Project Timelines: Clients are pushing for faster project completions, intensifying the demand for skilled labor.
External Disruptions: Events such as elections and adverse weather conditions have further complicated workforce availability.
Additionally, the allure of higher earnings abroad has led many Indian workers to seek opportunities in regions like Russia, Ukraine, and Israel, exacerbating the domestic labor shortage.
To mitigate these challenges, L&T has implemented several initiatives:
Employee Welfare: The company provides transport facilities, health drinks, and meals at project sites to enhance worker well-being.
Skill Development: L&T operates skill centers aimed at upskilling workers to meet specific project requirements.
Despite these efforts, the company continues to face an attrition rate exceeding 10%, resulting in