CHENNAI: A state planning commission report on rural non-farm employment in Tamil Nadu, based on a detailed survey done in 12 villages across six districts, showed a sharp shift from agricultural employment to non-agricultural employment in 12 years between 2012 and 2024.
Rural non-farm employment (RNFE) rose by 21 percentage points from 57.1% in 2012 to 78.2% in 2024. The agricultural employment reduced from 42.9% to 21.8%.
While Tamil Nadu’s rapid urbanisation and the transformation from being an agrarian economy is well-known, the report has thrown insights into the extent of this shift in the surveyed villages.
It may be noted that the contribution of agriculture and allied activities to TN’s Gross State Domestic Product (GSDP) shrunk from 17.6% in 2012 to 11.6% in 2023-24. Among non-farm sectors, construction is the preferred sector for male workers, particularly by younger workers, while manufacturing sector is preferred by women of all age groups.
Along with the shift, the report, however, highlighted that the percentage of those unemployed marginally increased from 4.8% in 2012 to 6.9% in 2024.
Four times more income in non-farm jobs: Report
In 2024, the unemployment among those aged between 20 and 29 was particularly high at 16%. “Highly educated individuals across rural villages in TN are searching for suitable jobs,” the report said. These 12 villages were chosen for a follow-up comparison since they were studied in detail in 2012.
The villages were Subramaniyapuram, Mullaiseval and Pattampudur in Virudhunagar district, Appaneri in Thoothukudi, Palamadai in Tirunelveli, Mathalamparai in Tenkasi, Perumanadu, Rethnakottai and Pudunilavayal in Pudukkottai, and Serumakkanallur, Thiruppayanam and Manaiyeripatti in Thanjavur.
The shift from farm employment to RNFE is more pronounced among male workers. As per the report, over 75% of male workers and 50% of female workers in the surveyed villages are now employed in non-agricultural activities.
The report credits the rise to the availability of non-farm employment in the state and an increased access to higher education. Additionally, the survey found non-farm workers to earn nearly four times more than agricultural labourers, and this higher income has also contributed to the shift. With respect to unemployment, 18.6% of the surveyed males were unemployed along with 13.3% of surveyed women in the 20 to 29 age group in the year 2024.
On whether the unemployment is due to lack of alternative non-farm employment, an official who was part of the survey, said, “Unemployment cannot be directly connected with the extent of non-farm employment in these villages. There are socio-cultural factors like caste and community that determine the number of women in the workforce”The villages are classified into High Rural Non Farm Employment villages and Low Rural Non Farm Employment Villages with the former having a relatively even lower dependence on agriculture than the latter.
Report gives credit to better access to higher education for rise in non-farm jobs. The survey found that non-farm workers earn four times more than agricultural labourers