L&T Chief warns of labour shortage in construction sector

Larsen & Toubro (L&T) Chairman and Managing Director SN Subrahmanyan has expressed concern over the declining migration of construction labourers in India, linking it to government welfare schemes and changing worker preferences. Speaking at CII’s Mystic South Global Linkages Summit 2025 in Chennai, he highlighted the growing difficulty in hiring and mobilizing workers.

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As reported by Business Today, Subrahmanyan noted that while employee attrition is a concern, the bigger challenge is the shrinking availability of labourers willing to relocate for jobs. L&T, which employs around 2.5 lakh staff and 4 lakh labourers at any given time, is struggling to attract workers despite having a dedicated HR team focused on recruitment and deployment.

He suggested that improved local economies and access to government benefits, including direct benefit transfers, might be reducing the incentive for labourers to move. This trend, he warned, is contributing to a nationwide shortage of skilled and semi-skilled workers, which could slow down key infrastructure projects.

With India’s construction sector already facing workforce challenges, Subrahmanyan’s remarks underscore a pressing issue for the industry. Despite ongoing efforts to manage labour shortages, companies like L&T continue to struggle with workforce mobilisation, raising concerns about potential delays in project execution.