Tue Dec 31 17:53:18 UTC 2024: ## Tamil Nadu Faces Growing Unemployment Crisis, Draft Policy Offers Solutions

**Chennai, December 31, 2024** – A new draft employment policy from the Tamil Nadu State Planning Commission (SPC) reveals a concerning picture of the state’s labor market, highlighting rising unemployment among educated youth and a mismatch between skills and job opportunities. The report, submitted to Chief Minister M.K. Stalin, projects a need for 36.5 million workers by 2031-32, a 2.3 million increase from 2021-22. However, the proportion of employed young adults (20-29) has fallen below 50%, a significant drop attributed to a decline in agricultural jobs.

The report notes the median age of agricultural workers has reached 42, making Tamil Nadu second only to Kerala in having the oldest farming workforce in India. This shift, while a natural progression for a developing state, underscores the need for job creation in other sectors. The report further points to a worrying trend of high unemployment among young women (7.4% in 2021-22), with many highly educated women opting out of the paid workforce and instead engaging in full-time domestic work.

To address these challenges, the SPC proposes several solutions:

* **Payroll subsidies:** To encourage hiring of first-generation college graduates, particularly women and those from rural areas, the SPC suggests two-year payroll subsidies for employing firms.
* **Skill development:** Leveraging the Naan Mudhalvan scheme to address skill gaps and enhance employability.
* **Formalizing manual labor:** Utilizing digital platforms to transform semi-skilled and skilled manual jobs into more appealing formal employment.
* **Investing in childcare:** Increased investment in affordable childcare to encourage women’s participation in the workforce.
* **Targeted career paths:** Creating specific career paths in manufacturing, providing support for acquiring necessary certifications and credentials.

The SPC emphasizes the need for policymakers to focus on the changing needs of young adults, both educated and less educated, who will constitute the core of the workforce for the next 25 years. The draft policy aims to proactively address the growing unemployment crisis and ensure Tamil Nadu’s future economic prosperity.

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