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Will Kerala’s Economy Stagnate Without Migrant Workers?

A significant shortage of migrant workers in Kerala, triggered by the April 2024 assembly elections in West Bengal and Assam, has brought many industries to a near standstill. Thousands of workers who returned home to vote have not yet come back, causing severe disruptions in sectors like plywood manufacturing, construction, and hospitality.

According to industry sources, around 40 to 45 lakh migrant workers are employed across Kerala, matching the number of Keralites working abroad. The sudden exodus has forced many factories to operate only a single shift, with some completely shutting down. The plywood hub in Perumbavoor, Ernakulam district, has been particularly hard hit.

Business owners report that the lack of workers is crippling production and increasing costs. They are running limited operations at a loss just to keep the businesses alive. The situation is compounded by limited train services from the affected states, making it difficult for workers to return.

Despite the crisis, employers remain hopeful that most workers will return within 15 days. The episode underscores the critical role migrant laborers play in Kerala’s economy, highlighting their contribution across nearly every sector except government and public transport.