Labour Shortage to Persist at Construction Sites for Next Couple of Months, Says Report

Labour shortage at construction sites is inevitable post-lockdown and may continue for the next couple of months, leading to cost escalations in real estate projects, according to JLL India.

In its report 'Labour Availability on Construction Projects', the consultant has assessed the impact of COVID-19 on migrant workers' income and found out that they have already lost 1-3 weeks of work.

It also conducted a survey of contractors and suppliers of raw materials.

"More than 60 per cent of the contractors predict that the labour shortage will be there for next couple of months, which will have a severe impact on the real estate sector," the report said.

The shortage of labour is inevitable post-lockdown at construction sites at least for several weeks, the consultant said.

"Lack of manpower and delays in supplies will potentially impact project budgets," it added.

Stating that the lockdown situation has made migrant workers more vulnerable in many ways, the consultant said that 92.5 per cent of labourers have already lost one to three weeks of work.

"Over 80 per cent of the country's migrant and daily wage population fears they will run out of food before the end of the lockdown phase," the report said.

More than 80 per cent of the workers have not registered for the social security umbrella especially meant for the construction workforce due to lack of awareness, it added.

The construction industry is the second largest employer in India after agriculture and provides employment to approximately 50 million people and hence the workforce especially the migrant ones become a key role in supporting this sector, the report said.

Meanwhile, JLL in a separate report said the impact of COVID-19 on the hospitality industry across Asia continues to be significant, with many hotels and investors witnessing an unparalleled cash crunch.

"Hotel owners across Asia are seeking greater access to debt financing to bolster cash flows as they face an unprecedented period of historically low occupancy rates, closed borders and severe limitations on air travel due to the ongoing COVID-19 pandemic," the consultant said.