BHUBANESWAR: The rising unemployment rate in Odisha has taken the shine off the State’s growth claim. Even as the State improved its economic growth to 8.4 per cent (per cent) in 2018-19 from 7.4 per cent in the last financial year, it beats the national average in unemployment rate.The unemployment rate in 2017-18 stood at 7.1 per cent in the State against the all India average of 6.1 per cent. In 2015-16, unemployment rate in the State was estimated at 3.8 per cent compared to National average of 3.7 per cent.
Latest employment indicators from Periodic Labour Force Survey (2017-18), conducted by National Sample Survey Office (NSSO), indicate decline in labour force participation in the State as was witnessed across the country. While Labour Force Participation Rate (LFPR) in Odisha is 48.3 per cent mirroring the National rate of 49.8 per cent, Worker-Population Ratio (WPR) in the State is 44.9 per cent compared to the national ratio of 46.8 per cent.
Rural areas have fared relatively better than urban areas in employment status. The LFPR in rural Odisha stood at 49 per cent, 4.2 per cent more than the urban average of 44.8 per cent. The unemployment rate was higher in urban areas (8.4 per cent) compared to rural areas (6.9 per cent).While LFPR and WPR among men is much higher than women, the unemployment rates are lower among men than women. “It raises gender inclusion concern for the State and requires Government’s attention to increase female participation in workforce,” the report suggested. As much as 48.8 per cent, a majority of the workers in Odisha are concentrated in agriculture sector, followed by 17.3 per cent in in construction while in other services, including finance, real estate, public administration, education and health it is 11.8 per cent.
In rural Odisha, 56 per cent of the workers are engaged in agriculture sector, 18 per cent in construction and 7.8 per cent in other services. But, highest of 35.9 per cent workers in urban Odisha are engaged in other services followed by trade and repair (18.4 per cent) and manufacturing (16.2 per cent).Though the informal sector is the largest provider of job opportunities in Odisha, ironically workers under the informal sector are devoid of any social security benefits and have low job security leading to high work instability.
The State had 15.4 per cent regular salaried workers, 27.2 per cent casual labourers and 57.4 self employed in 2017-18. Urban areas have a significant proportion of regular salaried workers (41.6 per cent) compared to rural areas. Self-employed workers continue to hold largest share of the pie with around 57.4 per cent of population remaining self-employed. Even as the rate of unemployment is lower in rural areas, 59.7 per cent workers are self-employed.
Reacting on the employment status, Minister for Labour and Employees’ State Insurance Susanta Singh said the State strives to ensure a conducive industrial climate through enforcement of different labour laws.
“Promotion of welfare of labour in organised and unorganised sectors has been the focus of the State to realise sustained and inclusive economic growth besides productive employment and decent work for all,” he added.