Chandigarh's Service Economy Continues to Shine with Growing Workforce
Chandigarh maintains its position as one of India's most service-driven economies. Recent data from NITI Aayog reveals that nearly 77.9% of the city's workforce engaged in the services sector during 2023-24. This figure represents a noticeable increase from 76.6% recorded back in 2011-12. It far exceeds the national average of 29.7% for services sector employment across India.
Women Workers Show Remarkable Alignment with Services
Women in Chandigarh's workforce demonstrate particularly strong involvement in services. An impressive 92% of the city's female workers find employment in this sector. This contrasts sharply with the national urban average of approximately 60% for women. For male workers in Chandigarh, the share stands at over 73%, which also surpasses the national urban figure of 61%.
Industry leaders point to specific reasons behind this trend. They note the limited availability of manufacturing jobs for women alongside abundant opportunities in services. Naveen Manglani, vice-president and spokesman of the Chamber of Chandigarh Industries, explained the situation clearly. He stated that most job opportunities for women in the city exist within the service sector because manufacturing still remains dominated by male workers.
Sanjeev Chadha, president of Chandigarh Beopar Mandal, reinforced this perspective. He emphasized that the service sector dominates Chandigarh's economy completely. The number of available jobs in the city leans heavily toward services. Certain sub-sectors like education, retail, and financial services show particular preference for employing women workers.
Detailed Breakdown of Services Sector Composition
Within Chandigarh's services sector, various industries contribute to workforce distribution. Wholesale and retail trade accounts for nearly 22% of employment. Public administration and defence make up 14%, while information and communication contribute about 12%. Other significant sub-sectors include:
- Financial and insurance activities: 8.2%
- Education: 6.3%
- Human health and social work: 5.7%
- Transportation and storage: 6.8%
- Accommodation and food services: 6%
- Professional, scientific and technical activities: 4.8%
- Other service activities: 3.6%
- Activities of households: 8%
- Real estate activities: 1.2%
- Administrative and support services: 1%
- Arts, entertainment and recreation: 0.7%
MSME Growth and Women-Led Enterprises Surge
The city's economic structure receives additional support from micro, small and medium enterprises. These MSMEs operate across both manufacturing and services sectors. Data from the Ministry of MSME reveals a steady and remarkable increase in women-led units over recent years.
In 2020-21, there were 833 such units. This number grew to 1,529 in 2021-22, then reached 1,923 in 2022-23. The most dramatic surge occurred in 2023-24 with 5,836 women-led MSMEs recorded. This represents 26% of total MSMEs in the city, showing consistent growth from 14% in 2020-21.
Experts Identify Key Growth Drivers
Economic experts point to several factors driving Chandigarh's service-led growth. The city's urban character, planned infrastructure, and focused development in specific sectors play crucial roles. Retail, education, finance, and administration emerge as primary drivers of employment opportunities.
A UT official shared insights about future directions. He mentioned that NITI Aayog recommended strengthening innovation in professional and technology-driven services. This involves fostering incubation and academic partnerships, aligning university courses with emerging sectors, and establishing a dedicated medtech innovation hub. These measures aim to increase employment opportunities within the service sector further.
Historical Trends in Service Sector Employment
Chandigarh's service sector employment has shown interesting fluctuations over the years:
- 2011-12: 76.6%
- 2017-18: 76.3%
- 2018-19: 83%
- 2019-20: 79%
- 2020-21: 83.4%
- 2021-22: 73.7%
- 2022-23: 83.8%
- 2023-24: 77.9%
The city's economic landscape continues to evolve with services at its core. Chandigarh's workforce distribution reflects broader trends in urban employment patterns across India. The strong presence of women in service occupations highlights changing dynamics in the city's labor market.
