
This interview with Subburathinam P, Chief Strategy Officer at TeamLease Services Limited, delves into the current employment scenario in Tamil Nadu. Key topics include:
- Promising Sectors: Manufacturing, electronics, MSMEs, and marine products are identified as key growth areas.
- Regional Disparities: The interview highlights the urban-rural divide and the need for focused development in rural areas.
- Skill Mismatch: The challenge of aligning education and training with industry demands is discussed.
- Government Initiatives: The Naan Mudhalvan initiative and other government programs are explored as potential solutions to address skill gaps and create jobs.
By understanding these factors, we can gain valuable insights into the future of work in Tamil Nadu.
Subburathinam P, Chief Strategy Officer, TeamLease Services Limited
- The current employment scenario in Tamil Nadu. Which sectors are seeking more demand for jobs?
The government set itself an ambitious target of becoming a $1 trillion economy by 2030. Tamil Nadu, a manufacturing powerhouse known for its textile and automobile industries, has diversified into growing sectors like sustainable mobility, electronics, and medtech. It now hosts industries ranging from IT to healthcare, supported by a skilled workforce. Tamil Nadu is emerging as one of the world’s top 10 auto hubs and is the largest producer of EVs in India, accounting for 40% of all vehicles and 70% of two-wheelers.
Tamil Nadu’s employment landscape is seeing significant demand in several key sectors:
1. Manufacturing and Electronics: With investments in electronics, automobile, and auto components, including electric vehicles and solar cell manufacturing, Tamil Nadu is expected to generate over 1 lakh jobs in the next few years, especially in areas like Krishnagiri, Hosur, Coimbatore etc.
2. Micro, Small, and Medium Enterprises (MSMEs): The MSME sector in Tamil Nadu has shown significant job growth. The state has over 25 lakh MSMEs, with micro-enterprises making up 97.8% of this total. With the government’s initiatives, Tamil Nadu will create more jobs in MSMEs in a few years time.
3. Marine Products: The seafood export sector is expanding, with financial support for breeding centres and reduced customs duties on essential inputs
2) Which are the regions which are seeking demand for jobs? What are the key drivers?
Coimbatore & Chennai both are experiencing significant job growth driven by several key factors. The city is a major hub for manufacturing, particularly in textiles, engineering, and automotive components, supported by a strong industrial base and government incentives. Coimbatore’s industrial growth, especially in textiles, engineering, and manufacturing, attracts investments and job creation. Over two lakh MSMEs in Coimbatore play a crucial role in generating employment, aided by government support.
3) What are the key challenges in employment in Tamil Nadu?
1. Skill Mismatch: Despite a high number of graduates, there is often a gap between the skills possessed by job seekers and those demanded by employers. This mismatch can lead to underemployment and difficulty in filling specialized roles
2. Urban-Rural Disparities: There are significant disparities in employment opportunities between urban and rural areas. Rural regions often lack the infrastructure and investment needed to create jobs, leading to migration to urban centres and associated socio-economic issues
3. Automation and Technological Advancements: The increasing adoption of automation and advanced technologies in industries can reduce the demand for manual labor, leading to job displacement for workers who lack the necessary technical skills
4) Is underemployment an issue in Tamil Nadu?
Yes, underemployment is a significant issue in Tamil Nadu. Key factors include a skill mismatch between graduates and employer requirements, sectoral imbalances with low wages and limited growth in agriculture and traditional manufacturing, and a high prevalence of informal employment lacking job security and benefits. Economic slowdowns have further reduced opportunities in high-growth sectors like IT and manufacturing. Despite government initiatives like payroll subsidies for women and incentives for high-paying jobs in Global Capability Centres (GCCs), their impact is still unfolding. Also, rural-urban disparities in infrastructure and investment exacerbate underemployment in rural areas.
The Naan Mudhalvan initiative, started by the Tamil Nadu government, focuses on enhancing the skills of students and youth through various courses and training programs in technology, language skills, and competitive exam preparation. By providing career guidance and industry-relevant skills, the program aims to make the youth more competitive globally, thereby increasing their employability and creating more job opportunities in the state.