Mon, May 11, 2026
India, one of the world’s most populous nations, is repeatedly running into an unexpected problem: labour scarcity. Be it construction or manufacturing or gig work, sporadic worker shortages are being witnessed across multiple sectors.
Heatwaves, elections, pollution, LPG shortage due to the West Asia conflict, and even the marriage season - the range of reasons behind it seems bewildering. But it is impacting labour productivity and hurting the economy.
Industry insiders, economists, and public health experts that The Secretariat spoke with said the scenario was ripe for policy intervention.
For instance, last month, many migrant workers in industrial units in and around Delhi left for home, unable to afford the cost of living due to a spike in cooking gas prices. Heat was another factor – Delhi’s hottest April day in four years was reported this year. Cities in Maharashtra, Uttar Pradesh, Madhya Pradesh, and Rajasthan have recorded maximum temperatures above 45 degrees Celsius, affecting labour-intensive work. Elections in four states also caused thousands of workers to return to their native places to cast their vote.
Before Covid, around 80 million people migrated within India annually. After the pandemic, that number came down significantly - to around 60 million.
— Pronab Sen, a distinguished economist and Former Chief Statistician, Government of India, told The Secretariat
Recurring workforce shortages are throwing project timelines off the rails in the construction sector. Brick kilns, textiles, and small industrial units – which are part of the manufacturing sector - are facing operational slowdowns, say experts.
“The impact of labour shortages will be felt most strongly in the construction sector because it remains highly labour-intensive. Smaller construction firms that depend heavily on manual labour are more likely to suffer,” said Sen.
An International Labour Organisation (ILO) report published in 2019 noted, “Labour-intensive sectors in India are expected to face some of the sharpest productivity declines due to rising temperatures.”
Projecting for 30 years from 2011 to 2040, it estimates working-hour losses in construction at 9.04%, followed by manufacturing at 5.29%, and the services sector at 1.48%.
Real estate developers say extreme heat is forcing changes in work schedules.
Work now starts around 7 a.m. instead of 9 a.m. and stops by 12 p.m., resuming only after 4 p.m., when the temperature falls.
— said Vijay Shah, Chairman of the Ahmedabad-based firm Vijay Builders, told The Secretariat
In his city, the maximum temperature reached 44.8°C in the last week of April.
The impact is visible in India’s expanding gig economy too. Delivery agents, sanitation staff, logistics personnel, and app-based workers are impacted as they work outdoors.
Climate change and weather-related stress are structural risks that not only result in productivity losses but also increased health costs and income deprivation for some of the poorest segments of society.
In Delhi, April 25 was the hottest day of the season at 42.8°C, which was 5.1 degrees above normal. In the last week of April, hospitals in the city reported a spike in cases of heat stroke, dehydration, cramps and exhaustion.
Heat stroke deaths remain underreported. India still lacks a clear health protection and insurance framework for outdoor workers exposed to extreme heat. Most labourers remain uninsured even as climate risks intensify.
— said Pranay Lal, a biochemist, author, and expert who works at the intersection of public health, environment, and development, told The Secretariat
Maharashtra, one of India’s most industrialised states, is reported to have registered around 230 cases of heat stroke in the first week of May.
Heat shocks and heat strokes have become routine as industrial expansion continues to rely on labour intensification. Workers are compelled to adapt to longer work cycles, heavier loads, and rising thermal exposure.
— said Mukul Sharma, Professor of Environmental Studies at Ashoka University, told The Secretariat
In the aftermath of the West Asia crisis, many Micro, Small and Medium Enterprises (MSMEs) were badly hit by the shortage of gas supplies. Ceramic units in Khurja, textile units in Surat, glassmaking factories in Ferozabad, and even tea estate factories in West Bengal were affected, causing migrant workers to return home.
In March, many garment units in Delhi reported 50-60 per cent lower production due to labour shortages, which in turn were spurred by higher LPG cylinder prices.
“If the West Asia situation continues, industries dependent on migrant labour could face serious trouble because rising LPG shortages and living costs make it difficult for workers to stay in cities,” said Sen.
Then April brought assembly elections. Delhi and Gurgaon soon began complaining about the sudden shortage of maids and drivers who had emptied out to cast their vote.
Developers and contractors say this is typical during elections in Bihar and West Bengal, from where a large number of migrant labour arrives in cities. The Election Commission’s Special Intensive Revision (SIR) exercise in Bihar last year, too, had triggered an outflux, as people went back for document verification.
Bizarre as it may sound, marriage-related absences are another reason for labour disruptions. “The ongoing marriage season has resulted in high absenteeism. Of my 250 workers, only around 100 are currently available. It slows down the work significantly,” said builder Vijay Shah.
The troubles don’t end with summer, as every winter, northern India battles pollution. The air quality in cities like Delhi, Gurgaon, and Noida slips to the severe category, triggering the Graded Response Action Plan (GRAP).
Implemented under the directions of the National Green Tribunal and air quality authorities in Delhi and the National Capital Region, it routinely puts a break on non-essential construction work when there is “severe” pollution, meaning Air Quality Index (AQI) in the range of 401-450. This delays infrastructure projects and affects thousands of daily wage workers.
Industry stakeholders say repeated construction bans during winter months add another layer of uncertainty to sectors already struggling with workforce shortages and climate-linked disruptions.
Experts say that India’s policy response remains largely fragmented and reactive despite repeated labour disruptions across sectors.
The government does have an E-Shram portal, which aims to create a database of unorganised workers in the 16-59 age group to reach welfare schemes and government assistance to them. But experts say these often remain inaccessible to workers.
While Heat Action Plans and GRAP are activated as and when required, India still lacks a long-term framework to deal with work-hour regulations, migrant workforce continuity, insurance protection, and climate-linked occupational safeguards.
“Heatwaves are fixed realities now. India cannot stop the heat, but it can adapt better through heat-sensitive urban planning, revised work timings, and stronger labour protections,” Lal said.
Lal also pointed to examples from North Africa where countries adapted early to recurring heat stress through long-term urban planning and infrastructure changes.
“Countries like Morocco understood decades ago which parts of their cities were more vulnerable to heat and adapted early through heat-sensitive urban planning, water systems, trees, and building materials designed to reduce heat retention.”
India’s industrial growth continues to depend heavily on manual labour despite technological modernisation. As elections, climate stress, pollution controls, and global supply disruptions increasingly collide, India’s productivity challenge is becoming more than a seasonal slowdown.