Labour Shortage in Textile Industry in India – A Critical Review
The severe shortage of labour in the Textile Industry resulted in a 10-15 per cent increase in cost since June 2013.
The industry witnessed a migration of skilled and unskilled labourers to their home towns and villages, as they started
finding work closer to home due to the growing rural economy. Textiles no longer remained an employers’ market; it is
now an employees’ market.” This has pushed companies to raise wages and offer other benefits to retain labourers. Earlier,
these incentives were only offered by major ones but now even those in the small and medium sectors have been forced to
offer incentives for labourers to stay back. There are offers of subsidised or even free meals, plus accommodation. Many
have also started offering referral bonus if an employee gets others to join the company. Many in the industry are reasonably
educated and have better job opportunities elsewhere as sales people or can work in mall management, where the educational
qualifications required are not very high.
Index terms- Textile Industry, shortage of labour, reverse migration of skilled labourers, raise wages, retain labourers,