Larsen & Toubro (L&T) is facing a significant skilled labor shortage across its various divisions, according to its Chairman and MD, S N Subrahmanyan. The engineering and construction segment is short of 25,000 laborers, while the IT and IT-enabled services unit is struggling with a deficit of 20,000 engineers, TOI report said.
This shortage is severely impacting L&T’s ability to execute its projects. The company attributes the shortfall to a combination of factors: extreme weather conditions, disruptions from recent elections, and an increasing trend of workers moving abroad for higher wages, particularly to destinations like Russia and Israel. Additionally, there is a high demand for specific skill sets that are currently hard to find. Subrahmanyan, commonly known as SNS, also pointed to an attrition rate of 10-12% within the company as a contributing factor.
L&T has intermittently grappled with manpower shortages. Last year, Chairman and MD S N Subrahmanyan (SNS) acknowledged that despite the company's aim to recruit over 30,000 laborers, challenges persisted. Adverse weather conditions have further complicated the situation, forcing adjustments in project schedules; in some instances, work is suspended during afternoons except for essential or critical tasks.
To support its workforce, L&T provides transport facilities, health drinks, and meals at construction sites. Additionally, the conglomerate has established skill centers and other initiatives to help mitigate the impact of these shortages.
At any given time, L&T employs over 400,000 laborers skilled in trades like carpentry and masonry across its projects, according to Chairman and MD S N Subrahmanyan (SNS). In the engineering division, an attrition rate exceeding 10% exacerbates the challenge, resulting in a consistent shortage of over 14,000 engineers. "Currently, we need about 20,000 engineers, accounting for attrition," he stated.
L&T's labor shortfall reflects a broader trend across the infrastructure sector and the industry as a whole. Recently, TeamLease reported that the semiconductor sector could face a deficit of 200,000 to 300,000 professionals by 2027, a critical concern as India aims to secure a substantial share of the global semiconductor market.
This shortage is severely impacting L&T’s ability to execute its projects. The company attributes the shortfall to a combination of factors: extreme weather conditions, disruptions from recent elections, and an increasing trend of workers moving abroad for higher wages, particularly to destinations like Russia and Israel. Additionally, there is a high demand for specific skill sets that are currently hard to find. Subrahmanyan, commonly known as SNS, also pointed to an attrition rate of 10-12% within the company as a contributing factor.
L&T has intermittently grappled with manpower shortages. Last year, Chairman and MD S N Subrahmanyan (SNS) acknowledged that despite the company's aim to recruit over 30,000 laborers, challenges persisted. Adverse weather conditions have further complicated the situation, forcing adjustments in project schedules; in some instances, work is suspended during afternoons except for essential or critical tasks.
To support its workforce, L&T provides transport facilities, health drinks, and meals at construction sites. Additionally, the conglomerate has established skill centers and other initiatives to help mitigate the impact of these shortages.
At any given time, L&T employs over 400,000 laborers skilled in trades like carpentry and masonry across its projects, according to Chairman and MD S N Subrahmanyan (SNS). In the engineering division, an attrition rate exceeding 10% exacerbates the challenge, resulting in a consistent shortage of over 14,000 engineers. "Currently, we need about 20,000 engineers, accounting for attrition," he stated.
L&T's labor shortfall reflects a broader trend across the infrastructure sector and the industry as a whole. Recently, TeamLease reported that the semiconductor sector could face a deficit of 200,000 to 300,000 professionals by 2027, a critical concern as India aims to secure a substantial share of the global semiconductor market.
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