Investment regains pace in city, jobs lag

T'puram: Enterprise investments in Thiruvananthapuram are showing signs of recovery after last year's slowdown, but employment generation has not kept pace, raising concerns over the district's industrial growth pattern.According to data from industries department, investment levels improved in 2024–25 compared to 2023–24. However, job creation remains well below the peak recorded in 2022–23. In 2022–23, the district generated 29,878 jobs with an investment of Rs 840.89 crore and the establishment of 14,434 enterprises. The following year saw a sharp decline across all indicators. In 2023–24, employment dropped to 19,550, investment fell to Rs 518.62 crore and the number of new enterprises decreased to 10,056. Though 2024–25 recorded a recovery in investment to Rs 632 crore and a marginal increase in the number of enterprises to 10,542, employment generation rose only to 21,475. Industry observers said the trend points to a shift towards more capital-intensive enterprises that require fewer workers. Dr Kiran Kumar Kakarlapudi, professor at Gulati Institute of Finance and Taxation, who conducts research on enterprises said firms are increasingly opting for capital-intensive models with lower labour requirements. He noted that higher wage rates in Kerala compared to other states influence this shift, as companies prefer models that reduce labour costs. He also pointed to a possible skills mismatch, stating that firms may be willing to hire but struggle to find candidates with the required expertise. A senior official at district industries department attributed the employment gap partly to changing work preferences among youth. He said that over past three years, more than 41,000 enterprises have been established in the district, placing it among the top performers in the state. According to him, skill availability is not the primary issue, but many youngsters are reluctant to take up eight-hour shifts in firms and instead prefer gig jobs such as food delivery. He added that employment growth is expected to improve gradually with expanded skill training initiatives and a supportive industrial environment. While investment inflows indicate a revival, the data suggests that enterprise growth in the district has yet to translate into substantial employment gains for local job seekers.