Factors causing labour scarcity in the Sri Lankan apparel industry







Introduction

The Sri Lankan apparel industry is a labour intensive industry. The labour intensive nature of the industry is evidenced by the 600,000 direct and indirect workers in the industry. One of the biggest threats to the long term sustainability of the industry is labour scarcity. Findings from previous empirical studies reveal a sharp decline in workers, particularly new workers joining the industry after 2003 (Kelegama, 2009). The sharp decline in new workers joining the industry has been compounded by high annual turnover in the industry i.e., annual turnover of 55% (Sandeepanie and Ubayachandra, 2015). The low number of new employees joining the industry coupled with high annual attrition rates has resulted in the apparel industry currently experiencing a 40% labour shortage (Central Bank of Sri Lanka, 2017).  



Main causes of labour scarcity in the apparel industry

The main causes of labour scarcity in the Sri Lankan apparel industry include high labour demand and attractiveness of other industries, negative social perception of the industry, challenging working conditions, and poor health and safety conditions for workers. Findings from research conducted by Welmilla (2020) show that a majority of apparel workers stay in boarding houses in close proximity to their place of employment. Overcrowding plus poor sanitary facilities in these boarding houses has resulted in apparel working facing numerous health and safety issues e.g., skin diseases. High demand and attractiveness of other industries has contributed to labour scarcity in the apparel industry. For example, high pay and growing demand for workers from the construction industry has resulted in workers in the apparel industry moving to this industry and new entrants to the workforce opting to join the construction industry instead of the apparel industry despite work being more arduous in the construction industry (Welmilla, 2020). Poor social recognition of the apparel industry due to negative media coverage and a few incidents which occurred previously has resulted in new entrants to the workforce selecting other industries over the apparel industry, and also resulted in most workers leaving the apparel industry as soon as they secure employment in other industries (Welmilla, 2020). Challenging work conditions such as having to work long hours either seated or standing in the same place, having to work on weekends, and irregular hours which have been compounded by high labour shortage is another key cause of high employee turnover and low interest of new entrants to the workforce in joining the apparel industry.



Conclusion

Labour scarcity due to difficult working conditions, negative social perception of apparel workers, attractiveness of other industries, and poor health and safety conditions of workers has resulted in a massive labour shortage in the apparel industry. Given the significant contribution of the apparel industry to socioeconomic development in the country, the Sri Lankan Government and Apparel Industry need to address these causes of labour scarcity on a priority basis. Failure to do so will cause massive repercussions for the apparel industry and the country.

 

 


 

References

Central Bank Report. (2017) Annual statistics report 2017. CMB: Department of Census and Statistics, Sri Lanka.

Kelegama, S. and Epaarachchi, P. (2003) Ready-made garment industry in Sri Lanka: facing the global challenge. Institute of policy studies, Colombo.

Sandeepanie, M.H.R. and Udayachandra, E.G. (2015). Different factors effecting employee 8th motivation in the Sri Lankan apparel manufacturing sector. International Research Conference – Kothalawala Defense University. [Online] Available at: http://www.kdu.ac.lk/proceedings/irc2015/2015/msh-028.pdf [Accessed: 4 April 2021].

Welmilla, I. (2020) Human resource challenges in apparel industry in Sri Lanka. Global Journal of Management and Business Resources: Administration and Management, 20(2), pp. 45-54.

 

 

 

 



Comments

  1. Prujodth April 16, 2021 at 6:04 AM

    Garment industries are one the main revenue generator for srilanka and 52% of them are for exports.According to Lohar & Gopal (2013),
    raising the employment strength is mandatory for
    smoother operation with a competitive advantage. The
    survey findings have shown that the majority of
    respondents are low-educated or not getting any
    technical education.

    ReplyDelete
  2. Ruwan HerathApril 22, 2021 at 9:56 PM

    Labour scarcity is a common for all kind of organization. Since currently we are in "millennial" generation & generation "Z", they are well educated & working with digital era. Apparel industries are in Sri Lanka badly affected with generational issue during the recruitment stage.
    To overcome this situation for some levels, they can offer number of benefits such as, Offer competitive salaries, Offer learning & development opportunities, Create employer brand, Use Social media for recruitment etc...

    ReplyDelete

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