As many as 17,207 new jobs were created in Tamil Nadu’s formal sector in May this year, in a rebound from the negative number in April. However, the new jobs were nearly 70.81% down from the March level.
Job creation is measured in the number of new net enrolments made with the Employees Provident Fund Organisation (EPFO). The net enrolments were in the negative (-14,098) in April. In March, the number of new jobs was 58,948.
“In Tamil Nadu, the May number, compared with April, is hugely positive owing to the unlocking of companies in the manufacturing, supply chain and construction sectors,” said Aditya Narayan Mishra, CEO of CIEL HR Services, a staffing firm.
In May, the State government relaxed some curbs for industrial establishments to function. Tamil Nadu has the highest number of factories in India, and is a key manufacturing State with the presence of major automotive, auto components and other labour-intensive units.
But Mr. Mishra pointed out that many organisations had not filed their PF returns because of the lockdown. “Some delays in the March and April filings have played a significant role in this upswing. The real picture will be visible in September.”
K.E. Raghunathan, convener of the Consortium of Indian Associations, said that until May 20, the State was under full lockdown. “The additions are shrinking in the higher age brackets, indicating that mid-level and semi-experienced people are losing jobs and finding it difficult to find a new job,” he said. He said August would see more job losses because the demand was bleak. “Unless the demand is increased on a war footing with more government spending, it will be a gloomy picture on the jobs front.”
He said job losses would continue in July and August in sectors like education and services such as salons and cinema halls. The increase of COVID-19 cases in districts and the resultant lockdown, he argued, would also contribute to job losses.
