Kerala Touted as ‘Welfare Magnet State’ at ILO Meet

Quick Summary:

• Kerala has become a “welfare magnet State” through its inclusive labor welfare initiatives, particularly for migrant workers.
• A paper presented at teh ILO conference in Geneva highlights Kerala’s systematic approach to regulating decent work and migrant welfare programs, including proposals for an exclusive budget for guest workers.
• Maintaining dignified living conditions and welfare schemes over five years is estimated to cost ₹454 crore.
• Kerala is noted as the first State to fully implement the Inter-State Migrant Workmen Act,1979. Welfare measures include health benefits, educational assistance, maternity benefits, terminal reliefs, financial aid for repatriation of deceased workers’ bodies, disability aid, and more.
• Migrants in Kerala generate average surplus monthly savings of ₹4,000; around 32% send remittances exceeding ₹30,000 yearly.Annual remittance outflow from the State is valued between ₹7,500 crore and ₹8,000 crore.
• Factors attracting inter-State migrants include demographic shifts such as low fertility rates (1.5) below replacement levels; high elderly population (14% compared to national average of 9%), urbanization trends; and competitive wages averaging ₹893.6 per day against India’s average wage of ₹417.3 per day.
• Population growth rate in Kerala is expected to turn negative within a decade but migration trends may slow due to declining fertility rates and rising wages in originating States.

Indian Opinion Analysis:

Kerala’s approach underscores how proactive labour policies can substantially contribute toward addressing inherent demographic challenges like shrinking workforce pools due to low fertility rates and an aging population.By implementing robust social safety nets alongside competitive wages – nearly double the national daily wage average – it positions itself as an attractive destination for inter-State migrants while fostering economic inclusivity.

However, future dynamics may shift if sending States improve their local economic opportunities or face similar demographic changes themselves. The potential drop in inter-State migration inflow could impact sectors reliant on this workforce unless counter-strategies-like automation or increased local recruitment-are planned proactively.

The estimated annual outflow via remittances reflects both economic activity stimulated by these guest workers but also highlights concerns about sustaining this financial burden long-term amid tighter fiscal constraints perhaps heightened by implementation costs (₹454 crore). Balancing these considerations while maintaining welfare commitments with dwindling resources might pose strategic dilemmas ahead.

Read more: Original Source Link