Tamil Nadu an exception as rural unemployment rises across southern India

While unemployment has risen across most southern states, Tamil Nadu stands out with declines in both rural and urban rates.

Published Dec 29, 2024 | 7:15 PMUpdated Dec 29, 2024 | 8:01 PM

Kerala tops rural India for daily wages of workers.

Rural unemployment rates have risen across much of South India, with significant increases reported in Karnataka, Telangana, Kerala, and Andhra Pradesh between 2022–23 and 2023–24, according to the latest unemployment figures from the Reserve Bank of India’s annual Handbook of Statistics.

However, Tamil Nadu is an exception as it state shows consistent declines in unemployment across all demographics.

Also Read: Tamil Nadu government says Rs 9.74 lakh crore investments created 31 lakh jobs in 3 years

A bleak outlook

Compared to the previous year, 2023–24 saw significant increases in female unemployment, particularly in Telangana and Kerala.

In Karnataka, unemployment among rural men rose notably from 17 to 25 per 1,000, while rural female unemployment declined slightly, from 13 to 9 per 1,000. The overall rural unemployment rate increased to 19 per 1,000, up from 15 per 1,000 in 2022–23.

Telangana has fared worse, with unemployment rising across both genders. Rural female unemployment surged from 21 to 31 per 1,000, while rural male unemployment increased from 33 to 37 per 1,000. The overall rural unemployment rate climbed from 28 to 35 per 1,000.

Kerala presents one of the most concerning cases. Rural female unemployment rose drastically from 92 to 121 per 1,000, contrasting with a slight decline in rural male unemployment, which decreased marginally from 47 to 46 per 1,000. Consequently, the overall rural unemployment rate increased from 65 to 76 per 1,000.

Meanwhile, Andhra Pradesh has remained more or less consistent with the previous year, with rural male unemployment rising modestly from 35 to 38 per 1,000, while rural female unemployment declined marginally from 30 to 29 per 1,000. This resulted in a small overall increase in rural unemployment, from 33 per 1,000 in 2022–23 to 34 per 1,000.

Tamil Nadu: An outlier

In contrast to its southern counterparts, Tamil Nadu recorded declining rural unemployment rates.

Unemployment among rural men dropped from 40 to 35 per 1,000, while rural female unemployment decreased from 37 to 27 per 1,000. Overall, rural unemployment fell from 38 to 31 per 1,000.

Tamil Nadu continued its positive trajectory, with urban unemployment decreasing from 51 to 41 per 1,000.

This positive trend aligns with broader economic developments in the state. The Annual Survey of Industries (ASI) 2022–23 revealed that Tamil Nadu accounted for 15% of all industrial jobs created in India—the highest share nationally. Initiatives such as the Tamil Nadu Industrial Policy 2021 and the Naan Mudhalvan Scheme appear to have played pivotal roles in attracting investments and creating employment opportunities, particularly in rural areas.

Also Read: Tamil Nadu leads industrial job creation in India with 15 percent of total national workforce

Urban story: A mixed bag

Urban unemployment paints a different picture, with varying trends across states.

In Telangana, urban male unemployment fell from 71 to 60 per 1,000, but female unemployment rose from 96 to 104 per 1,000, resulting in a slight overall decrease from 78 to 73 per 1,000.

Karnataka experienced a rise in urban male unemployment from 38 to 41 per 1,000, counterbalanced by a decline in female unemployment from 51 to 44 per 1,000, keeping the overall rate steady at 42 per 1,000.

Kerala and Andhra Pradesh showed encouraging improvements in urban employment. In Kerala, unemployment rates for both genders fell, reducing the overall rate from 76 to 67 per 1,000.

Similarly, Andhra Pradesh saw its urban unemployment rate drop from 65 to 59 per 1,000.

(Edited by Dese Gowda)

Follow us