Tamil Nadu adds more new entry level jobs despite slowdown in auto sector

Despite a slowdown in the automobile sector, which has led to production cuts in factories in and around Chennai, Tamil Nadu has added new jobs, in the 18-21 years category, and has emerged as the second largest generator of employment after Karnataka. 

During the year 2018-19, Karnataka ranked first in new payroll addition with 265,827 people coming under the ambit of EPFO, as compared to 260,699 people from Tamil Nadu. Maharashtra continued to see the largest net new payroll addition in this period. Maharashtra saw a net new payroll addition of 531,060 in 2018-19 and the number stood at 2,44,166 in the April to July, 2019, period.

According to data released by the Employees' Provident Fund Organisation (EPFO) in September, 2019, net new payroll addition, in the age group of 18 to 21 years, in Tamil Nadu during July, 2019, was 44,311. During the period from April to July, the total net new payroll addition was 150,835, compared to 127,731 net payroll addition in Karnataka during the same period.

A senior official of the state government said that since Tamil Nadu was the second largest economy in the country and number one in terms of number of factories and workers, the growth in terms of new employment creation was on expected lines.

"In 2019, we have seen a slew of investments coming in. Out of the many Memoranda of Understanding (MoUs) signed during the Global Investors Meet, foundation stones of around 37 projects have been laid and work on these projects has begun. In the micro, small and medium enterprises (MSME) space, around 2,300 units have started production. A lot of investment has also come in apart from that committed under the MoUs. There has been an increase in terms of investment and growth," said the official.

Last year, Tamil Nadu's economy grew 8.4 per cent as compared to the national growth of around 6 per cent. Despite the slowdown in the automobile sector, unlike in other States, growth has been witnessed in Tamil Nadu.

One of the areas, where growth has been seen, is contract manufacturing. Electronics manufacturing is another sector which is seeing a growth and is bringing in more investments. For instance, one of the major contract electronics manufacturers added thousands of employees in Tamil Nadu in the last 18 months.

"Contract manufacturing is a big area where employment is coming. In Cheyyar SEZ, leather manufacturers are also generating more employment," he said.

Data shows that the state has moved up in terms of net new payroll additions in the age group of 22-25 too, from the fourth position to the third position with 98,592 entrees during April to July, 2019, compared to 84,766 enrollments by Gujarat during the same period. Karnataka, with 1,26,755 enrollments is in the second position while Maharashtra continues to lead with 244,162 new payroll additions during the period.

Gujarat (137,373) was in the third position after Maharashtra (486,518) and Karnataka (219,708), while Tamil Nadu registered new payroll additions of 126,990 people in 2018-19.