Skilled Labor Shortage in Real Estate: The Way Forward | Niranjan Hiranandani Latest Video

The real estate and construction industry is one of the largest employment sectors in India, second only to agriculture. However, in recent years, a skilled labor shortage has become a pressing issue, significantly impacting the growth of the sector. In a recent discussion on Zee Business, Dr. Niranjan Hiranandani, Chairman of NAREDCO and CMD of the Hiranandani Group, shared critical insights into this growing concern and proposed effective solutions.

Watch the full discussion on the Dr. Niranjan Hiranandani YouTube Channel for expert perspectives on the skilled labor shortage in real estate and potential strategies for addressing it. You can also view the full video here: Skilled Labor Shortage in Real Estate: The Way Forward.

The Skilled Labor Crisis in the Real Estate Sector

1. Current Situation and Challenges

According to 2023 data, there are 70 million workers in the construction and real estate sector, with only 10 million categorized as skilled labor. However, the industry requires at least 20 million skilled workers to meet growing demands. By 2030, NITI Aayog projects the need for 100 million construction workers, including 30 million skilled workers.

Despite the growing demand, the industry faces a two-million skilled worker deficit, leading to project delays, increased costs, and reduced efficiency. The paradox lies in the fact that while unemployment rates remain high in India, the real estate sector struggles to find skilled labor.

2. Why Are Skilled Workers in Short Supply?

The shortage of skilled labor in real estate is driven by several key factors:

• Lack of proper training programs and vocational education.

• Attractive overseas job opportunities, where workers can earn up to four times their salary.

• Limited private sector involvement in skill development.

• Low awareness and incentives for upskilling among unskilled workers.

Solutions to Bridge the Skilled Labor Gap

1. Promoting Skill Development in the Private Sector

Dr. Niranjan Hiranandani emphasizes the importance of private sector involvement in workforce training. Big real estate and infrastructure companies, including the Hiranandani Group, must take the lead in providing skill development programs.

Encouraging government incentives and policies to support corporate skill training initiatives can significantly bridge the gap. If businesses invest in workforce training, not only will wages increase, but the quality of work and productivity will also improve.

2. Affordable and Fast-Track Training Programs

One of the key takeaways from the discussion was that skilled workers can be trained within just six months. This approach provides a cost-effective and fast-track solution to upskilling India’s workforce, ensuring they earn three times more than unskilled workers. With short-term vocational courses, workers can secure stable, high-paying jobs in real estate.

3. Boosting Wages and Incentives

One reason workers avoid upskilling is the low initial pay for skilled jobs. By offering better wages, additional incentives, and career growth opportunities, the real estate sector can attract more talent. Unskilled laborers earning ₹300 per day can transition into skilled professionals making ₹900 per day or more with proper training.

4. Leveraging Overseas Employment Opportunities

With proper training, Indian workers can explore overseas job markets where wages are significantly higher. Countries experiencing labor shortages offer salaries six to ten times higher than India. Encouraging skill training for international placements can reduce unemployment and increase remittance inflows into the Indian economy.

The Role of Hiranandani Group and NAREDCO

Dr. Niranjan Hiranandani, as Chairman of NAREDCO, is actively working towards addressing this challenge. Under his leadership, NAREDCO and private developers are promoting training programs, industry collaborations, and policy advocacy to solve the skilled labor crisis. The Hiranandani Group is also committed to workforce upskilling, ensuring real estate projects are completed efficiently and to the highest standards.

Final Thoughts: The Way Forward

The skilled labor shortage in real estate is a serious issue, but it is not unsolvable. With focused skill development programs, better incentives, and strong private-sector participation, India can build a strong, skilled workforce to support its booming construction sector.

For more expert insights from Dr. Niranjan Hiranandani, subscribe to his YouTube channel: Dr. Niranjan Hiranandani.

FAQs

1. Why is there a skilled labor shortage in real estate?

The shortage is mainly due to a lack of proper vocational training, higher overseas job opportunities, and limited private-sector involvement in skill development.

2. How many skilled workers does India need for the construction sector?

As per NITI Aayog, by 2030, India will need 100 million construction workers, of which 30 million should be skilled.

3. How can the private sector help in addressing the labor shortage?

The private sector can help by investing in skill development programs, offering better wages, and collaborating with the government to create incentives for upskilling.

4. How long does it take to train an unskilled worker?

With the right vocational training, an unskilled worker can become skilled in just six months, significantly increasing their earning potential.

5. What role does the Hiranandani Group play in addressing this issue?

The Hiranandani Group, led by Dr. Niranjan Hiranandani, is actively working on skill development initiatives to train and employ more skilled workers in the real estate sector.

6. How can skilled Indian workers benefit from overseas job opportunities?

Skilled Indian workers can earn six to ten times their local salary by securing jobs abroad in high-demand sectors like construction, infrastructure, and healthcare.

By addressing the skilled labor shortage in real estate, India can unlock new growth opportunities and create a more prosperous future. Stay updated with the latest industry insights by subscribing to Dr. Niranjan Hiranandani’s YouTube channel.