Role and Effect of Migrant Workers on Economic Rationalization and the Unorganized Sector in Kerala

Abstract

Recently, there has been a significant arrival of migrant labourers from various parts of India to Kerala, attracted by higher wages, abundant job opportunities, and a shortage of local workers. This study aims to explore the impact of migrant workers on Kerala’s economy and labour market, examining their professional and personal benefits. Employing a descriptive research approach, the study heavily relies on secondary sources from print and digital media, including books, journals, newspapers, articles, and government databases. It analyzes the effect of migration on economic rationalization and assesses the economic and social advantages brought about by migration. Parameters such as the number of migrant employees, labour force participation rate, worker-population ratio, and wage rates are investigated. The study anticipates a substantial increase in migrant workers in the Kerala economy, from 650,000 in 2011 to 31,500,000 in 2020. It also reveals improvements in earnings and employment prospects, particularly in the construction industry (60%), manufacturing sector (8%), lodging and food services (7%), commerce (2%), and agriculture (2%). Migration enhances living conditions, enriches social lives, and promotes intergroup harmony through exposure to diverse cultures, traditions, and languages.