CHENNAI: Tamil Nadu has long been a frontrunner in gender inclusion within the industrial sector, boasting the highest percentage of women in its industrial workforce nationwide—43%, according to official data. However, recent insights from the Tamil Nadu State Economic Survey suggest that this workforce composition may undergo a shift, driven largely by an increasing number of young women prioritising higher education over early employment. This transition signals broader socio-economic changes in the state, reshaping its labour market dynamics.
Changing labour force participation trends
On a national level, the Labour Force Participation Rate (LFPR) for young men has risen from 60% in 2019-20 to 63.5% in 2023-24, while for young women, it increased from 20.6% to 28.8%. In Tamil Nadu, however, both male and female participation in the workforce have declined—from 63.6% to 59% for young men and from 26.8% to 23.8% for young women.
Experts attribute this trend to a combination of economic factors, including higher wages, robust social security measures, and government initiatives like the Tamil Nadu Urban Employment Scheme, which have encouraged young people to pursue education before entering the job market. The state’s emphasis on education and skilling has led to a shift where young women see better long-term prospects in higher education rather than entering the workforce immediately.
Tamil Nadu’s success in fostering female workforce participation stems from its policies and strategic investments. Initiatives such as the Pudhumai Penn Scheme and the Free Bus Pass Scheme have significantly reduced economic barriers for women pursuing education and employment, says Industries Minister TRB Rajaa.
“Education has become more accessible, especially for girls from economically disadvantaged backgrounds. This, in turn, influences workforce participation rates, as women are looking for opportunities that match their qualifications,” says the Economic Survey.
However, activists caution that while these policies are beneficial, wage disparity remains a pressing issue. “Despite their increasing presence in industries, women continue to receive lower wages compared to their male counterparts. Addressing this pay gap should be a priority,” argued Sujatha Mody, president of Penn Thozhilalar Sangam, a women workers’ union.
The Tamil Nadu government has also been instrumental in encouraging industries to adopt gender-inclusive hiring practices. Industries Minister T R B Rajaa has emphasised that investments in welfare measures, workplace infrastructure, and policy incentives are crucial in fostering a diverse workforce.
Multinational corporations operating in Tamil Nadu have responded positively. Godrej Consumer Products Limited (GCPL) recently launched its first integrated greenfield manufacturing facility in the state, with a commitment to achieving a 50% female workforce. “We are proud of our ongoing efforts to create an inclusive and equitable work environment. The future of manufacturing lies in empowering people and ensuring sustainability,” said Nadir Godrej, Chairperson of Godrej Industries Group.
Similarly, Tata Motors has pledged to maintain high female workforce participation in its state-of-the-art Green production facility in Panapakkam, Ranipet district. During the launch, N Chandrasekaran, Chairman of Tata Sons, stated, “Our endeavor is to have a high share of women employees across various levels, reinforcing our focus on gender equity.”
V G Sakthikumar, Chairman and Managing Director, Schwing Stetter India said "Manufacturing is rapidly evolving, and so is its workforce. Seeing more women take charge in Tamil Nadu’s industries is a testament to the state’s progressive policies and the collective efforts of companies like Schwing Stetter. We have over 30% women in our Cheyyar factory, where we provide structured career development, healthcare, and hostel facilities, ensuring they build long-term careers, not just jobs. Diversity and inclusion fuel innovation, and we believe women engineers and technicians are pivotal to shaping India’s infrastructure landscape. The Tamil Nadu government has championed policies that encourage women beyond IT and office jobs, and as an industry, we must complement these efforts by fostering skill-building, mentorship, and leadership opportunities."
Bridging the Gap Between Education and Employment
While Tamil Nadu has made significant strides in gender inclusivity, the challenge now lies in ensuring that women transitioning from higher education find equitable job opportunities. Policies must evolve to accommodate both education and employment aspirations, particularly in industries like non-leather footwear and electronics assembly, where female employment is prominent.
The demand for improved support infrastructure—including women’s hostels, industrial housing, and better transit facilities—has grown in response to increasing female workforce participation, says the economic survey.
Additionally, competency mapping for students and bridging skill gaps remain key concerns. Programmes like Naan Mudhalvan, which help students align their skills with industry needs, along with recognition of prior learning initiatives and finishing school programmes, should be prioritised.
Beyond education, experts highlight the importance of investing in women-centric technical courses at Polytechnics and ITIs. For Tamil Nadu to continue as a leader in gender-inclusive employment, it must address workplace safety and security. This includes expanding childcare support facilities such as creches near workplaces and strengthening institutional frameworks to prevent workplace harassment.
As the state navigates this evolving socio-economic landscape, striking a balance between educational aspirations and workforce participation will define the next chapter in the state’s industrial progress. With targeted policy interventions and corporate responsibility, the state can continue to lead in empowering women through both education and employment.