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.

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