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N. Ramakrishnan

CHENNAI, May 3

THE structure of employment in Tamil Nadu has more or less mirrored the structural transformation that has taken place in the State's economy over the years. For, the number of persons employed in the primary sector has shown a decline while that in the secondary and tertiary sectors has gone up, in the 1991-2001 period.

Tamil Nadu's economy has undergone a major transformation over the last few decades. From being a primary-producing economy to one dependent now on the services sector.

The primary sector's share of the Gross State Domestic Product has dropped from 43.5 per cent to about 17 per cent now, while the secondary sector's share increased from 20.3 per cent to about 33 per cent and that of the tertiary sector went up from 36 per cent to about 50 per cent now.

According to a report on employment perspectives for Tamil Nadu, prepared by the Department of Evaluation and Applied Research, a State Government department, primary sector employment has declined at an annual rate of 0.50 per cent from 153.42 lakh in 1991 to 145.80 lakh in 2001.

As the report points out, employment in the secondary and tertiary sectors is on the rise. Secondary sector employment increased from 37.91 lakh in 1991 to 57.68 lakh in 2001, an annual increase of 5.22 per cent. Similarly, employment in the tertiary sector went up to 74.64 lakh in 2001 from 50.61 lakhs in 1991, an annual growth rate of 4.75 per cent. The fall in employment in the agriculture sector has been compensated with increases in both the secondary and tertiary sectors.

According to the evaluation study, primary sector employment which accounted for a dominant share, 55-60 per cent, to the total employment had declined in 1999-2000 as compared to that in 1993-94.

Even though secondary sector employment increased from 6.24 per cent in 1993-94 to 6.85 million in 1999-2000, its growth rate decelerated from 2.96 per cent during the 1983 to 1993-94 period to 1.57 per cent per annum during 1993-94 to 1999-2000. However, employment growth in the tertiary sector accelerated from 2.08 per cent per annum to 2.86 per cent per annum during this period.

A host of factors have resulted in the number of persons employed in the agriculture sector drop, especially the increasing modernisation of agricultural operations, which has reduced the need for a large number of workers.

Despite this change in employment pattern, a number of persons are still dependent on the agriculture sector for their livelihood.

It is in this context and the importance to the rural economy, that the growth target for the agriculture sector as projected by the Union Planning Commission for the Tenth Plan Period — at 2.33 per cent — should not be acceptable, according to the study.

As the study points out, a State like Tamil Nadu has a considerable stake and responsibility with regard to food security concerns and "a low target for agriculture and allied sectors would invite food deficiencies sooner or later and increase the misery of the rural economy."

Therefore, a growth target of 3.5-4 per cent with a clear strategy on increasing productivity in the crop husbandry sector, diversification to value-added crops, including horticulture, and accelerated growth in the allied sectors should sustain and absorb the additional labour force in the rural areas.

The study adds a note of caution. A growth rate of 2.33 per cent for the Tenth Plan would pave the way for Tamil Nadu going the Kerala way, where crop husbandry is confined only to the Kuttanad area, it says.

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