This study explores the relationship between workforce dynamics, productivity, and potential biases in Punjab’s manufacturing sector, with a particular focus on the textile industry. Statistical discrimination, a form of workplace inequality based on group stereotypes rather than individual merit, is analyzed to understand its impact on employee performance and organizational productivity. Using a mixed-methods approach, the research incorporates quantitative data from production metrics and qualitative insights from worker interviews to identify key factors influencing workplace disparities. The findings highlight the presence of implicit biases in hiring and task allocation, leading to inefficiencies and morale issues. Furthermore, the study discusses the role of targeted interventions, such as training programs and inclusive workplace policies, to mitigate these challenges. By addressing workforce inequalities, the research provides actionable recommendations to enhance productivity and foster equity in Punjab’s labor-intensive industries.