The India Decade

Over half of Tamil Nadu youth hold degrees and salaried jobs, study finds

A report highlights gains in higher education, wage growth, and female workforce participation across the state.

By The India Decade

Chennai Presidency College, file image.
Chennai Presidency College, file image. · “Chennai Presidency College Main” by Ravichandar84 (CC BY-SA 3.0) via Wikimedia Commons

More than half of young adults in Tamil Nadu hold a college degree and work in regular salaried positions, marking the highest rate of degree attainment among Indian states, according to a report.

The findings, published in the Tamil Nadu Handbook of Youth Opportunity by the Future of India Foundation and the Chennai International Centre, point to steady progress in higher educational access and workforce integration.

Key findings on education and employment

Among state residents aged between 22 and 29 years, 52 per cent hold a university degree. Within that group in the active labour force, 56 per cent have secured regular salaried jobs.

Over eight years leading up to 2025, overall youth unemployment among 15 to 29-year-olds fell from 26 per cent to 14 per cent. The proportion of young people not in work, education, or training also dropped from 34 per cent to 25 per cent across Tamil Nadu.

Female workforce participation showed growth over the same timeframe. The share of young women in active employment grew from 19 per cent to 25 per cent, while those classified as outside education, work, or training fell from 49 per cent to 40 per cent in the 22 to 29 age group.

Youth workforce metricEarlier figureFigure by 2025
Youth unemployment (15–29 years)26%14%
Young people outside education, work or training34%25%
Young women in active work19%25%
Young women outside education, work or training (22–29 years)49%40%
Average monthly regular salary (real terms)₹14,615₹17,100

Earnings and career development

Salary levels have increased alongside educational expansion. Average regular monthly pay for workers aged 15 to 29 rose by 17 per cent in real terms over the eight-year period, reaching ₹17,100 per month.

While 71 per cent of young workers currently earn under ₹20,000 per month, structural growth in regional manufacturing and services continues to drive opportunities. Graduates currently make up two-thirds of unemployed young people seeking work in the state, reflecting high overall graduation rates as workforce opportunities expand.

The handbook was presented at an event featuring C. Chandramouli, Managing Director of the Chennai International Centre; M. Suresh Babu, Director of the Madras Institute of Development Studies; Ramesh Mangaleswaran, Senior Partner Emeritus at McKinsey; and Ruchi Gupta, Executive Director of the Future of India Foundation.

Key numbers

WhatFigureSource
Degree ownership among youth aged 22-2952%Tamil Nadu Handbook of Youth Opportunity
Salaried job share among degree holders aged 22-2956%Tamil Nadu Handbook of Youth Opportunity
Youth unemployment rate (15-29 years)Fell from 26% to 14%Tamil Nadu Handbook of Youth Opportunity
Young women workforce participationRose from 19% to 25%Tamil Nadu Handbook of Youth Opportunity
Average regular monthly salary (15-29 years)₹17,100Tamil Nadu Handbook of Youth Opportunity

In this story

NameRole in the story
Future of India FoundationCo-publisher of the handbook.
Chennai International CentreCo-publisher of the handbook.
Tamil NaduState subject of the youth opportunity survey.

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