Objectives: To find out the reasons behind the extensive employment of inter-state migrant workers in the selected regions and sectors of Kerala, from the employers’ perspective.
Methods: A survey of 432 employers or owners of the enterprises who employed inter-state migrant workers was conducted with the help of pre-tested interview schedule. The data was collected from employers/owners belonging to three sectors in the three districts of Kerala. Stratified random sampling technique was used to select the sample. Descriptive statistics like tabulation analysis, percentages and non-parametric tests were used for data analysis.
Findings: The employers in selected sectors faced some labour related issues, mainly labour shortage, higher wages and union problems by native workers. To overcome these problems employer started sourcing and employing migrant workers. Native workers were not interested to take up unskilled and menial jobs in Kerala due to social stigma. Therefore severe labour shortage accompanied with more benefits and less cost/demerits from the employment of migrant workers and consequent preference for migrants in order to meet the demand in some segments of the labour market led to the extensive employment of migrant workers in Kerala.
Application: The study conveys the problems of employers/owners of enterprises and reasons for employing migrant workers in the present labour situation in Kerala. Due to the strong interference of labour unions along with several other reasons, Kerala doesn’t have a supportive environment for industrial growth. Hence, this study may help policy makers to take appropriate measures to encourage entrepreneurs and their business.