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Recruitment Costs of Migrant Workers: Insights from the 2023 Kerala Recruitment Cost Survey

S Irudaya Rajan
Akhil C S

Abstract

This study examines the recruitment costs faced by migrant workers from Kerala,
India, using data from the Kerala Recruitment Cost Survey 2023. Focusing on SDG Indicator
10.7.1—Recruitment Cost Indicator (RCI), which measures costs as a proportion of firstmonth earnings—the study analyzes financial burdens across different recruitment channels,
occupations, and demographic groups. Findings reveal a median recruitment cost of
₹61,156, with travel expenses (₹58,369) and private agency fees (₹66,065) as major
components. The median RCI of 2.11 indicates most workers spend over two months’ salary
to recover costs, while 25 per cent face severe burdens (RCI > 4.37). High RCIs
disproportionately affect less-educated migrants (63.35 per cent with ≤10th standard
education) earning lower wages (median salary: ₹27,282). Recruitment through social
networks (60.41 per cent) remains dominant, but reliance on private agencies (14.88%) and
informal intermediaries (6.02 per cent) exacerbates costs.

Keywords: Recruitment costs, migrant workers, Kerala, SDG 10.7.1, RCI, labor migration
policy