Significant shift among workers moving away from agriculture to non-farm sectors in TN, says State Planning Commission
In Tamil Nadu, there is a notable shift as workers increasingly transition from the agriculture sector to non-farm sectors such as construction and manufacturing, according to a report by the State Planning Commission (SPC).
The report titled ‘Rural Non-Farm Employment in Tamil Nadu’ (RNFE), conducted in 12 villages across six districts with varied levels of RNFE, reveals that over 75 percent of male workers and 50 percent of female workers are now engaged in non-agricultural activities. This marks a 20 percent decline in agricultural dependence since 2012, highlighting a structural shift in rural livelihoods.
A significant observation from the report is that younger workers, particularly those aged 15-34, are spearheading this transition. They are drawn to non-farm jobs due to better wages and more stable employment opportunities. The construction sector has emerged as the dominant field for male workers, especially the youth, while manufacturing remains the primary employer for women across all age groups.
In 2024, the average annual earnings for a worker in agriculture in rural Tamil Nadu are noticeably lower than those in non-agricultural jobs. An agricultural laborer earns an average of ₹37,577 per annum, whereas a self-employed worker in agriculture earns ₹99,400 per annum.
The migration of workers from the primary sector is significantly more pronounced in Tamil Nadu than in the rest of India. In 2001, the percentage of workers in the Primary Sector in Tamil Nadu was at 49 percent, dropping below the 50 percent mark for the first time. This trend continued swiftly, leading to only about 43 percent of workers being supported by the primary sector by 2011. In contrast, the corresponding percentage was 53 across India. Being one of the most industrialized states in the country, Tamil Nadu had nearly a quarter of its workforce engaged in the secondary sector in 2011, a stark contrast to India’s 17 percent at the same time. The state displays a higher level of diversification away from the primary sector compared to India, with workforce structural transformation occurring at a steady pace.
However, employment stability remains a concern. While approximately 60 percent of non-farm workers have jobs lasting 9-12 months a year, the remaining 40 percent face unstable work, with employment lasting fewer than nine months. Additionally, nearly 40 percent of non-agricultural workers report working less than eight hours daily, raising concerns about the quality of these jobs.
Deputy Chief Minister of Tamil Nadu and Ex-officio Vice-Chairman of SPC, Udhayanidhi Stalin, and SPC Executive Vice-Chairman J Jeyaranjan, submitted reports on four topics to the Chief Minister recently. The report is part of a broader effort to evaluate and guide developmental strategies across various sectors.
Other focal points include Tamil Nadu’s Vision for Sustainable Development Goals, Tamil Nadu’s Automotive Future, and Reimagining Tamil Nadu – Path to Knowledge Economy. These studies are among the SPC’s mandates to evaluate government flagship programs, conduct studies, and prepare policy drafts.
The study on Tamil Nadu’s Automotive Future emphasizes advancing multiple powertrain technologies, including electric, hybrid, hydrogen, CNG, and diesel, along with enhancing localization, green fuel adoption, and policy support. Given the state’s leadership in electric two-wheeler production, the report highlights the need to skill over two lakh workers in EV systems, battery technology, and automation by 2030. Key recommendations include establishing EV clusters, enhancing logistics infrastructure, and expanding research and development through centers of excellence and skill parks. This roadmap aims to support Tamil Nadu’s vision of becoming a $1-trillion economy by 2030, positioning the state as a hub for clean mobility and innovation.
The report on the knowledge economy concentrates on two fundamental pillars—global capability centers and the future of manufacturing. It underscores the importance of strengthening the MSME ecosystem as a key driver of economic resilience, while advocating for inclusive growth with a keen focus on social equity as a guiding principle for economic transformation.
The Sustainable Development Goals 2030, Tamil Nadu’s Vision for SDGs outlines the state’s current status and interventions through various welfare schemes, innovations, and policy measures. It also details strategies and action plans for each goal and target.
Chief Minister Stalin has remarked on Tamil Nadu’s progress, noting that the state’s performance in sustainable development goals surpasses that of Europe on average, emphasizing strides in rural jobs, electric vehicles, and the knowledge economy as integral to the state’s vision of reaching a $1 Trillion Economy.
