A study analyzing employment categories under the Third Master Plan in Chennai to be completed soon

The Chennai Metropolitan Development Authority (CMDA) is set to complete a detailed study to analyze the spatial distribution of employment and income categories with respect to the 5,904 sq km Chennai Extended Metropolitan Area (CMA). This study, conducted during a 32-week internship beginning April 1, is expected to be completed soon.

A CMDA official said the study will help in identifying priority areas and investment zones not only in commercial sectors but also in various other industries.

The CMDA said: Chennai generates 8% of the government’s revenue. The main city houses the Madras Port Trust and the Chennai Port, Secretariat and other administrative centers. While manufacturing hubs have developed in peripheral areas such as Orgadam and Sriperumbudur, software service clusters have sprung up along the Old Mahabalipuram Road IT corridor and in places such as Tidel Park, Siruseri and many special economic zones. Chennai currently has multiple business districts, and these dynamics in the city are not well understood due to the lack of disaggregated data.

What is extended CMA?

The CMA’s jurisdiction was expanded fivefold from 1,189 sq km to 5,904 sq km in October 2022 by including adjoining areas in 1,225 villages

Earlier, the CMA included Greater Chennai, Avadi and Tambaram corporations, five municipalities, three city panchayats and 10 panchayat unions, covering 179 villages in Chennai district and parts of Tiruvallur and Kancheepuram districts

The expanded CMA includes Greater Chennai, Avadi, Tambaram and Kancheepuram corporations, 12 municipalities, 13 city panchayats, one special grade city panchayat and 22 panchayat unions (with 1,321 villages)

The CMA covers five districts of Chennai, Kancheepuram, Chengalpattu and parts of Tiruvallur and Arakkonam Taluk of Ranipet

The study aims to identify spatial patterns in the distribution of jobs and income, covering both the formal and informal sectors. The CMDA stated that appropriate statistical tools will be used to determine site-specific economic activities, and these spatial indicators will be used to optimize the use of land and other resources.

Migration and employment

According to the Ministry of Labor and Employment’s 2013-14 report on Tamil Nadus district level estimates, Chennai (district) had a lower labor force participation rate of 516 (per 1,000 people) compared to other urban areas. According to the report, the unemployment rate in rural areas and cities was 2.8% and 4.7%, respectively.

In Chennai district, the overall unemployment rate is 63% higher than the state average for urban areas. Statistically, the unemployment rate for women is 74% higher than the U.S. average, while for men it is 51% higher than the average. This is consistent with the theory that in cities with high potential earnings, migration increases, but not everyone finds work due to higher reservation wages, the CMDA said.

Chennai district has a higher employment rate for people with higher education than other urban areas, but many postgraduates are currently unemployed, he added. According to the 2011 Census, migrants constituted 28% of the total population of counties, of which nearly one fifth migrated for work or business purposes.

Review process

As per the terms of reference, a review committee comprising CMDA officials, experts and academic institutions will analyze the reports generated. Anshul Mishra, Member Secretary, CMDA, will be the focal point of reporting.

Primary data will be collected through surveys and interviews, while relevant secondary data will be collected from various sources, experts, industries etc.,

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