Labor Shortage Slows Down Construction Projects in Delhi-NCR: Industry Faces Major Bottleneck

Published on: 23 APRIL 2025 | By: RodiDust News Desk

Delhi-NCR, India – The construction projects in North India is facing a significant slowdown due to a severe shortage of skilled and unskilled labor. Particularly in the Delhi-NCR region, this shortfall is causing major delays in project timelines, increasing costs, and affecting investor confidence.

The Aftermath of Festive Migration

Every year, post-festival migration leads to temporary labor shortages. However, this year, the situation has worsened. A large number of workers have not returned to construction sites after Holi and Diwali. Many are now opting for local jobs supported by government schemes such as PMAY-G and MGNREGA, where they can earn similar wages without leaving their hometowns.

Projects Affected Across NCR

Construction projects in Noida, Gurugram, Faridabad, and Ghaziabad are operating below capacity. Builders report that progress has slowed down dramatically, and project completion timelines are being pushed back.

“We’re operating at 50-60% of the required workforce. Despite offering higher wages and incentives, the response has been lukewarm,” – Rakesh Mehra, Site Manager, Gurugram.

Increased Costs and Delayed Possessions

This labor shortage has increased labor costs by 15-20%, which is inflating overall project budgets. Developers are left with two choices: absorb the cost or pass it on to homebuyers. Either way, possession dates are being rescheduled, and buyers are being urged to stay in regular touch with developers for updates.

The Road Ahead: Tech Integration and Policy Support

Experts suggest that the industry must adopt a hybrid approach of workforce mobilization and technology adoption. Recommendations include:

• Government-backed labor mobility and housing support
• Skilling initiatives under the Skill India Mission
• Use of automation, prefab construction, and robotics

As Delhi-NCR remains a hub for national infrastructure and real estate development, solving this labor crisis is crucial for India’s broader economic momentum.

About RodiDust

RodiDust.com is North India’s leading platform for construction news, material supply, and industry insights. We bring real-time updates and expert analysis to builders, contractors, and stakeholders across the region.

Tags: Construction News, Delhi NCR, Labor Shortage, Real Estate, Project Delays, RodiDust, Infrastructure India