Job migration has always been a problem, especially in times of economic upheaval. Until now, with troubles on the weather front and other problems faced by the agri industry, skilled labourers were migrating to other jobs in urban areas and beyond. Now, a report by CRISIL shows that the economic slowdown has led to a reversal of the migration pattern, with labourers moving back to farms from 2013-2019.
The direct cause for this, according to Crisil is the falling labour-intensiveness of the manufacturing industry, a trend which highlights the need for labour reforms in the country.
The data in the report shows that the contribution of the manufacturing sector to India’s GDP has stopped growing due to a variety of factors including transportation bottlenecks, a lack of power supply and rigid labour laws.
With the slow growth in the manufacturing sector and its inability to absorb labour, aided by a variety of factors like automation and labour laws inhibiting hiring, the services sectors are seeing more employment opportunities compared to sectors like manufacturing. This is the leading cause of migration to the agriculture sectors.