India Employer Forum

Human Capital

Internal Labour Migration in India: Trends, Challenges and Future Outlook

  • By: India Employer Forum
  • Date: 11 December 2024

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Labour migration has undergone a profound change; migrants have grown from 31.4 Cr in 2001 to 45.5 Cr in 2011 showing a 45% increase. Traditional conventions continue to influence migrants, especially women. However, we do see the rise of new drivers that boost labour migration such as the increase in business opportunities, education, and skill development. 

However, on the other hand, Insufficient infrastructure, strict state laws for migrant labour and limited access to basic amenities are a source of great angst for migrants. To leverage the skills of migrants, we need to work on resolving these obstacles and enable a good living ecosystem for them. This mandates states frame migrant-sensitive regulations and ensure that these regulations are adhered to and are implemented to ease the burden of the migrant population. 

Unravelling the Dynamics of Migrant Labour

Gender Disparities

The tradition of men migrating for employment (84.53%) and women migrating after marriage (97.47%) continues and there has been only a marginal amount of migration observed among women for employment (15.47%). Changing times mandate a shift where we see a higher percentage of women migrate for high-paying jobs that will add value to the workforce and enhance economic growth.      

Male migration from rural to urban areas for high-paying jobs increased to 33.5% in 2021 as compared to 8.57% in 2011. A relatively smaller increase has been observed among women in the rural-to-urban migration between 2011 (6.01%) to 2021 (15.60%) for marriage and family. These trends in rural-to-urban migration are attributed to frequent seasonalities in agriculture work and insufficient infrastructure in rural areas.  

Increasing seasonality in agriculture employment and low-wage jobs have decreased the option for males to migrate from rural to other rural areas for employment. This is evident in the drastic decrease from 31.40% in 2011 to 18% in 2021. In contrast,  this trend has had a minimal impact on females, whose migration patterns are relatively stable. 

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Disparities Among States 

States or regions with good economic stability, accelerated industrialisation and urbanisation have become hotspots for migrants. Maharashtra is at the top with the highest migration rate (12.59%) for its thriving tech hubs (Pune & Mumbai) that provide ample job opportunities in various domains and well-developed infrastructure that supports migrant families with good education and healthcare. This attracts more people for employment (19.08%) and business (10.64%). Conversely, Uttar Pradesh experiences much lower migration for employment (7.62%) and business (8.18%) owing to rural predominance in the state which restricts high-wage employment. The lack of well-developed infrastructure and access to basic amenities hampers the growth of industry in the State.

New Shift in Migration Trends: Emerging Aspiration for Business

There has been a significant rise in migration for businesses among males (74.73%) and females (25.27%) since 2001, indicating the growing traction for business opportunities beyond local employment. This necessitates impactful policy interventions in the budget for a transformational shift in migration. 

Migration in Settlements

Among different kinds of migrant movement observed in India, historically rural-to-rural migration dominates the rest accounting for 47.4% of all migration. This is a clear  indicator of the reliance on seasonal agricultural work for livelihood. Also, there has been an emergence of rural household businesses and agriculture-allied activities that are seen as new sources of employment for migrants.   

Though rural migration dominates, around 22.1% migrate from rural to urban areas for high-paying sustainable jobs. The requirement to move to different places for Job promotions and transfers and the desire for a luxurious life is still the major push behind the remaining 22.59% urban-to-urban migration.    

A small percentage of nearly 8% move from urban areas to rural areas due to unmanageable living costs and to start a simple rural business after retirement from government jobs. 

Lessons from the COVID-19 Pandemic

COVID-19 brought to the fore the struggles and disparities faced by migrant workers, especially those in the informal sector. The loss of jobs and less demand for work left these people in dire straits. Reduction in the salary of informal workers, which is already low, posed the challenge in buying even basic necessities as all groceries were at peak price at that time. All these worst hits combined, had a big psychological impact on workers, pushing them into anxiety, isolation and depression. Notably, many were scared and hopeless about managing such an upsurge in the future.  

The pandemic revealed crucial gaps in labour laws that need to be addressed to support migrant workers in any dynamic landscape to ensure job security, fair wages, proper health care and social security. 

Challenges and Recommendations for Internal Labour Migration in India

Breaking Barriers for Women

The migration of women needs to be facilitated with the creation of jobs, skill development, suitable infrastructure and non-restrictive legislation.  Laws such as the Factories Act of 1948, preventing women from working in industries like oil extraction, glass and pesticide manufacturing need to be modified for greater inclusivity and creation of conditions conducive to the participation of women in the workforce. This will ensure that they also get equal opportunities in terms of employment and salary. To support this change, there must be a concerted effort to improve social conditions for migrants and facilitate skill development initiatives that will enable women to seek employment opportunities beyond state borders.  

Government initiatives, including the Tamil Nadu Industrial Policy 2021, promote skill development and workforce participation among women, which aligns with the state’s strategic goal of increasing representation in high-tech manufacturing sectors. The growing emphasis on diversity and inclusion among global firms establishing or expanding their Chennai operations has played a pivotal role​ in these developments.

This has resulted in tangible results where we see a significant spike in women’s employment in semiconductor factories in Chennai, driven by the expansion of the semiconductor industry and policies encouraging workforce diversity. Companies such as Polymatech and SPEL, among others, are not only advancing their technological capabilities but also focusing on creating inclusive work environments. Polymatech, for example, is scaling up its production capacity significantly, likely creating more job opportunities for women in production and management roles. Additionally, educational institutions like IIT Madras are fostering talent through programs tailored to the semiconductor sector, enabling more women to enter this specialized field.

Optimising Housing and Accommodation

Though laws like the Inter-State Migrant Workmen Act of 1979 are in force, there is a long-lasting hustle for both urban and rural migrant workers to get good housing. Migrant workers in the construction, and manufacturing sectors often suffer due to congested spacing, poor sanitation, lack of ventilation and experience major health problems. New laws are needed to guarantee proper housing and sanitation for informal sector migrants, whose work is the base for all businesses but whose low wages are insufficient to meet both housing and health expenses.

Migrants in urban areas find it difficult to afford the exorbitant rents to the extent that many of them are compelled to live in urban slums that are available at high rents and limited infrastructure. Although schemes like the Swachh Bharat Abhiyan, Smart Cities Mission and  Atal Mission for Rejuvenation and Urban Transformation (AMRUT) have been introduced to revamp urban areas, they have not been able to solve the hurdles of urban migrants. The government must implement laws to ensure proper housing for migrants and incentivise homeowners or agencies to offer accommodation at nominal rates.

Creating Education Opportunities

Migrant children frequently face the problem of complicated education systems. Children who previously studied in government schools will face difficulties with new languages in other states. To solve this problem, the government has to establish special schools where migrant children can be educated in their native languages and gradually skilled in the local language. There can be unique scholarships and fee waivers for migrant children as it will make education affordable. States can also fund NGOs, such as Butterflies – an NGO in West Bengal, that supports migrant children with mobile education programs. 

Regularising Healthcare

Continuous long working hours in unhygienic environments are the cause of serious health implications such as malaria, tuberculosis and anaemia among workers in the construction and manufacturing sector. Maternal and child mortality due to malnutrition and poor immunity have created dreadful fear among workers. This apathy of employers and contractors towards worker’s health is unpardonable and unacceptable. Strict regulations must be implemented to hold employers responsible for the health and welfare of migrant labour.  

The government should maintain a dedicated database to track employer and contractor initiatives toward migrant worker’s welfare, especially in the informal sector. Employers could collaborate with NGOs such as the Avert Society in Maharashtra, CARE India in Uttar Pradesh and Delhi, HAMARA HIV/AIDS in Rajasthan to create awareness and organise free camps to prevent and treat various communicable diseases among migrant workers.

Liberalising Access to Basic Amenities

Migrant workers are often expected to provide or apply for a new proof of identity with the host state for access to basic amenities. Such biased practices are evident in the Public Distribution System (PDS) where migrants are denied access to government-subsidised products while the same is available for the locals. The demand for new identity proof, the tedious authentication process, biased access to amenities etc, will curtail future labour migration in the state, ultimately affecting the economy and employment growth. 

NGOs such as the Jeevika migrant workers movement in Kerala, Gram Vikas Trust in Madhya Pradesh and Indian Social Institute – labour and migration unit in Karnataka are actively involved in helping to create ID cards and bank accounts for the migrants in their respective states. State governments must simplify identity proof requirements and map migrants’ identity requirements to their UID or Aadhar for ease of access to basic amenities. 

Prioritizing Social Security for Informal Migrants

The reach for social security schemes among formal workers is far higher than it is among informal migrants. Laws such as the Maternity Benefits Act, of 1961 and Unorganised Workers Social Security Act, of 2008 actively seek to ensure social security benefits for informal workers through various implementation and monitoring initiatives, but there is a huge population left uncovered. 

A direct and simple enrollment process, weekly awareness by the government jointly with NGOs and providing incentives such as a bonus to the workers for participation can increase the reach of these schemes. Different workers may have various requirements, so customising the social security schemes to their needs will further increase their participation. Starting mobile registration units near workplaces will be helpful for recent migrants. 

The deductions for social security should be taken in such a way that it doesn’t affect the base salary of informal workers which is required for their livelihood. Social security deductions for informal migrants must be subsidised and borne by the government so that these workers can afford a better quality of life on their income. 

Revamping the Rural 

Seasonality in agriculture has created uncertainty among the rural people for jobs and livelihood. This necessitates the government to create and fund agriculture-allied activities, small-scale industries and processing units that will boost labour migration in rural areas. Rural youth have unexplored potential which can be harnessed with proper skill development programmes and prepare them for high-wage employment in secondary industries. 

Nurturing Emerging Business

Business migration is gearing up in the current era, demanding government interventions to fund and seed new innovative ideas in the nation. Revitalising underdeveloped hubs, and creating new hubs in remote areas should be a definite part of the budget to fuel young entrepreneurs as they can provide jobs to migrants from other regions. 

Labour migration offers a lot of potential to leverage the energy and skills of our young demographic across borders. This will also provide them with the opportunity to grow and thrive beyond the limitations of their hometowns. However, to support, promote and optimize labour migration, the central as well as state governments need to be sensitive to the needs of migrants. Policies supporting skill development, housing, healthcare and social security need to be designed and implemented to help revolutionise migration trends. The government also must frame new laws for migrant workers that address all of the issues that were brought to the fore during the COVID-19 pandemic. A myriad of challenges in the migrant worker’s community demand the need for transitional interventions to attain sustainable mass prosperity. 

References

  1. https://censusindia.gov.in/census.website/data/census-tables
  2. https://pib.gov.in/PressReleasePage.aspx?PRID=1833854
  3. https://www.mospi.gov.in/sites/default/files/publication_reports/Migration%20in%20India%20RL16082023.pdf

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