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With better implementation, the Tamil Nadu Urban Employment Scheme (TNUES) can contribute to employment and social security among socially and economically vulnerable households in urban parts of the State, particularly in town panchayats, the Economic Survey 2024-25 said.
This particular scheme, modelled on the MGNREGS, aims at enhancing livelihoods in urban areas by providing job opportunities for low, semi-skilled workers in select urban local bodies.
Women constitute 83% of the workforce under TNUES. Around 22% of the participants are agricultural workers, while 25% serve as primary breadwinners, and 18% belong to female-headed households.
The survey said the State must align its employment policies with global industry trends, fostering innovation, entrepreneurship, and sustainability. Strengthening digital literacy, vocational training, and adaptive workforce policies will ensure inclusive and resilient employment opportunities. By leveraging technological advancements, regulatory frameworks, and labour market adaptability, the state can sustain its position as a leading employment hub while balancing job creation with long-term economic stability.
On the employment front, it said Tamil Nadu is, at present, benefiting from a demographic advantage, with its working-age population at its peak. However, unlike many other states experiencing rapid labor force growth, Tamil Nadu is expected to see a gradual decline in its working-age population from 66.4% in 2021 to 63.6% by 2036.
It also showed a declining trend in the unemployment rate for individuals aged 15 and above in Tamil Nadu and India. In 2023-24, the UR was 3.5% in Tamil Nadu and 3.2% in India. Notably, the unemployment rate has consistently been higher in urban areas compared to rural regions.
The unemployment rate for individuals aged 15 and older based on their highest level of education completed is notably higher. In Tamil Nadu 24.3% of female graduates in the labour force are unemployed, while the UR for female with post graduate qualifications is 11.6%. In India, the corresponding figures are 20.4% and 22.5% respectively. Additionally, 7.4% of females with diploma or certificate qualifications in Tamil Nadu are unemployed, compared to 12.5% in India.
The survey also pointed out that Tamil Nadu experienced a decline in Labour Force Participation Rate (LFPR) for male youth, dropping from 63.6% to 59%, and for female youth, from 26.8% to 23.8%. One reason for the declining Labour Force Participation Rate (LFPR) in Tamil Nadu is the rising enrolment in higher education. Additionally, the state’s higher wages, supported by a strong social security system and schemes like Tamil Nadu Urban Employment Scheme, enable youth to invest more in education and seek employment opportunities that align with their qualifications and expectation
Published – March 13, 2025 11:35 pm IST
