Migrant labourers in Kerala, India's southernmost state, are a significant economic force in the state; there were around 2.5 million internal migrants in Kerala according to a 2013 study by the Gulati Institute of Finance and Taxation. Every year, the migrant worker population in Kerala increases by 2.35 lakh (235,000) people. The study, based on long-distance trains terminating in Kerala, does not cover migrants from the neighbouring states who use other modes of transport. Assuming that the estimation is rigorous and extrapolating it, taking into account the net annual addition, possible growth in migration rate, as well as accounting for the migration from the neighbouring states, Kerala is likely to have 5 to 5.5 million inter-state migrant workers in 2020. Despite their importance and despite many of them praising the state for its welfare schemes and environment, they are often ignored in comparison and suffer from comparatively poor living conditions.

Background There are both economic and social imbalances among states in India and this leads to internal migration in general. High literacy rates, better education and lack of professional and skilled jobs had prompted Keralites to look for higher wages and skilled labour outside India. This trend then led to a decline in the availability of workforce in Kerala especially in unskilled jobs. Kerala has the lowest population growth rate in the country and is set to become the first state with zero population growth, or even with a negative growth rate. The child population growth is currently negative at -8.44%. In less than a decade, the Keralite population is set to decrease. Schools have been reporting vacancy of seats not because of drops in enrollment, but simply as there are no children to send. Therefore, with an ageing population like in Europe combined with the tendency of youth migrating abroad, the shortage of workers is bound to increase.

Studies According to a study, Kerala is not able to create enough jobs that are suitable for an increasingly larger number of young people with high levels of education. Although lack of jobs was the main reason for migration of Keralites before 2000, the notion of higher wages abroad has gained traction among Keralites even though currently the wages obtained in Kerala have become similar to those obtained abroad in many cases. Additionally, the glamour associated with Gulf emigration is still very strong among the young in Kerala. This is an important factor in their decision to emigrate instead of working in the state. The Kerala Migration Survey (2014) conducted by the Centre for Development Studies, Thiruvananthapuram, found that the inability to generate employments to retain the educated youth was one reason why migration had increased – instead of dipping as forecast a few years earlier. But, several thousand educated youths have moved to the Gulf for low-skill jobs they wouldn't do in Kerala. Migration therefore also takes place either because the locals have priced themselves out of the informal service sector, or, as in big cities like Mumbai, they have placed some tasks beneath them and migrants fill the gap.

According to a 2013 study conducted by Mr. M. P. Joseph IAS (R), Dr. D. Narayana and Dr. C. S. Venkiteswaran on behalf of the Gulati Institute of Finance and Taxation for the Department of Labour and Skills of the Government of Kerala, there are over 25 lakh(2.5 million) domestic migrant labourers in Kerala from other states of India, as well as from Bhutan and Nepal, in 2016 this figure stood over 40 lakhs (4 million) with an annual arrival rate of 2.35 lakhs with a sum of Rs 25,000 crores going outside the state each year as wages to the migrant workers. According to official estimates, the expatriate Malayali population earns in excess of Rs. 75,000 crore annually. The number of migrant workers in Kerala is much larger compared to only 16 lakh (1.6 million) Keralites working outside India In 2013, the number of migrant workers in Kerala was almost one-tenth of that of the local population which was about 33 million in 2011. It is estimated to rise as high as 48 lakhs (4.8 million) by 2023 despite the decline of migration of Keralites to other countries. Besides, within 10 years, the majority of the local population would have aged above 40 years and this could lead to a further increase of migration from other states. In many cases, the high linguistic, social and cultural differences of Kerala and these other states and the large distance make it similar to international migration rather than internal migration.

Possible causes

Kerala offers the best wage rates in the country in the unorganised sector. Sustained job opportunities, peaceful social environment, relatively less discriminatory treatment of workers, presence of significant others, direct trains from native states, the ease with which the money they earn can be transferred home and the penetration of mobile phones cutting short the distance from homes influenced the migration to Kerala. There are push and pull factors attracting migrants to Kerala. According to Dr. Manav Paul, the push factors are mostly poverty, unemployment, density of population, bad yield from agriculture, low demand for labourers and other factors like raising up families, lack of civil activities in the residential area, disasters, internal fights on basis of caste, creed, race affect the flow of migrants to Kerala. Pull factors like better employment opportunities, standard of life in Kerala, high wages compared to other states, minimal or absence of communal clashes, high health indices, and provision of education for children also attract migrants to Kerala, as well as an ongoing labor shortage in Kerala and greater healthcare availability. However, despite these motivations, migrants often find that they are unable to access the same benefits as locals.

Push factors Migration has been a livelihood strategy for millions of rural poor in India for decades. Low wages, limited and irregular employment opportunities, failed crops, family debts and drought have been some of the major reasons that have pushed many people to leave their homes in search of jobs in Kerala too. Footloose labourers from Tamil Nadu have been lamenting about the lack of rains in their native place due to which agriculture is in a crisis. Workers from Anantapur in Andhra Pradesh and those from northern Karnataka were severely hit by drought. The major source areas from where workers come to Kerala are known for floods, cyclones as well as drought. In addition to these typical reasons, several workers from the eastern and northeastern states of India have cited political instability, caste oppressions and communal violence in their native places as reasons for migration. The enforcement of Foreigners Act by the current government in Assam has accentuated the movement of undocumented migrants from Bangladesh in Assam to Kerala.

Pull factors Kerala offers the best wage rates in the country in the unorganised sector- almost double the national average in many categories. In the absence of the availability of native labour due to the demographic advancement and the resultant changes in the age structure of the population, the state is almost completely dependent on migrant labour. The high wage rates and the sustainable job opportunities have made Kerala one of the most sought after destinations in the country. Political stability, the comparatively peaceful social environment, and the relatively less discriminatory treatment meted out to migrants compared to many other potential destinations, also serve as additional pull factors. The Muslim and Christian migrants feel quite comfortable in the state compared to other parts of India which is a significant reason for Kerala being chosen as their work destination. Hindi and Odiya services are offered for the Christian migrants in select areas in Kerala, and Muslim labourers tend to live in areas with significant presence of native Muslim community. Some of the migrants who have come to Kerala with their families cited the availability of better educational and health facilities in Kerala as an additional impetus for sticking on here.

High wages Kerala currently offers the highest wages not only in India but also among the SAARC Countries. The high minimum wages with comparatively better living conditions in Kerala, even in villages, are often what motivates migrant workers, as the wages are often double or even more than three times than wages obtained in other major cities in India, which also have higher living costs. This is often attributed to the socialist-leaning Kerala model of development and is a key attraction to the migrant labourers. For agricultural work like ploughing and tilling, the average daily wage in Kerala was more than Rs 713, followed by Tamil Nadu at Rs 515. The lowest wage being paid in the country was Rs 187. In states like Bihar, Uttar Pradesh, Gujarat and Odisha, workers are usually paid wages of around 200 rupees, but which can be as low as 90 rupees. The wages for non-agricultural work is also much higher in Kerala. Carpenters and plumbers get wages which are two times the national wage average for their profession. The data shows that while the average wage ranges are between Rs 200 and Rs 300 for different professions in states across the country, employers in Kerala do not pay below Rs 600 for any job. It is even said that a migrant labourer from Bihar, who would get Rs 40 at his native place, makes a minimum of Rs 600 in Kerala. However, Keralite workers are paid even higher amounts and so, most of the times the local residents prefer the migrant workers because of the comparatively cheaper labour and also because the migrants work harder than the locals. Even though the wages for labour are high, the cost of living in the state is the same or even lower than in many other parts of the country. Over 70 per cent of them earn wages above Rs.300 per day.

However, according to the last NSSO Survey (2011–2012), in the category of major states, Kerala has the highest unemployment rate (UR). Kerala's unemployment level is at 7.4%, while in other states it is below 4%. Even though the rate has declined over the years, 50 lakh (5 million) people are estimated to be unemployed in the state. The unemployment rate is lowest in Gujarat, at 0.5 per cent. However, Gujarat is a low-paying state on daily wages. Reading the two reports together, one can infer that while migrant labourers are attracted by the high daily wages, the natives are not opting for these jobs. Literacy and higher levels of education too has contributed to this attitude of considering some jobs as not respectable enough for a highly educated person.

As per a study in 2013, the expatriate Malayali population earns over 75000 crore rupees annually. These high inward remittances have increased the demand of local labour. According to a study conducted by GIFT, the migrant labourers in kerala send their homes approximately 17500 crore rupees. or an average of Rs 70,000 per person per year. These remittances are almost entirely sent home via bank services.

Average Wage Earnings per day Kerala offers the best wages in unorganised sector among the subnational entities of South Asia, which might be a pull factor for the Migrant labourers in Kerala. According to the India Wage Report prepared by International Labour Organization in 2018, the states with the consistent highest casual wages in both rural and urban areas are Kerala, Jammu and Kashmir, Punjab, and Haryana. The existing wages for casual workers in Kerala is around 65% higher than that of India. It is notable that the wage rates for women in Kerala is 50% more than that of their counterparts in India. However it is much lesser than their male counterparts in Kerala.