Circular Migration and India's Labour Markets

How millions of Indian workers move seasonally between villages and cities, why they rarely settle permanently, and what the 2020 lockdown revealed.

Every year, millions of Indian workers leave their villages to work in cities, construction sites, brick kilns and farms in other states, returning home for harvests, festivals or the monsoon. This pattern is called circular migration.

The scale

The 2011 Census counted more than 450 million internal migrants in India, though most moved within their own state, and many for marriage. Labour migration is a large and growing part of this, but it is hard to measure because many short-term migrants are missed by surveys.

Why circular rather than permanent?

Housing: cities have expensive, scarce housing, so workers live in crowded rooms, worksites or slums.
Security: keeping land and family in the village provides a safety net.
Benefits tied to home: ration cards, voting rights and some welfare schemes have historically been linked to the home state.
Language and social barriers in destination states.
Seasonal work: construction and agriculture have peak seasons.

Contributions

Migrant workers build cities, run factories and send remittances home, which support families, education and housing in source states such as Bihar, Uttar Pradesh, Odisha and Rajasthan.

The 2020 lockdown

When India announced a sudden national lockdown in March 2020, millions of migrant workers lost jobs and income overnight. With transport halted, many walked hundreds of kilometres home. The crisis exposed how few migrants were covered by social protection in the cities where they worked.

Policy responses

One Nation One Ration Card: allows people to claim subsidised food grains anywhere in India.
e-Shram: a national database of unorganised workers, including migrants, launched in 2021.
Affordable rental housing schemes for migrants.
Portability of health insurance under Ayushman Bharat.

Remaining challenges

Many migrants still lack written contracts, face wage theft, and have limited access to welfare. Better data, portable benefits and enforcement of labour laws are key.

The construction worker's year

A worker from Jharkhand spends eight months building apartments in Bengaluru, living in a temporary shed on site. He sends most of his wages home and returns during the paddy season. With his ration card now portable, he can buy subsidised grain in Bengaluru too.

Thinking migrants move to cities permanently

Many Indian migrants move back and forth, keeping strong links with their villages because city life offers little security.

Key takeaways

Circular migration means moving between villages and cities seasonally.
Housing costs, security and home-linked benefits explain why many don't settle.
The 2020 lockdown exposed migrants' lack of protection.
One Nation One Ration Card and e-Shram aim to make support portable.