Odisha’s Unemployment Rate Higher Than National Average, Situation Worse In Urban Areas: Minister

Bhubaneswar: Odisha’s unemployment rate at 3.9% is higher than the national average of 3.2%, Skill Development Minister Sampad Swain told the state Assembly on Friday. 

Swain said Odisha ranked 21st among all states and union territories in the unemployment rate as per the Periodic Labour Force Survey 2022-23 conducted by the National Sample Survey Office (NSSO). The situation in urban areas is more concerning than the rural regions.

“While the unemployment rate stands at 3.6 in rural areas, it is 6.2% in urban areas. Of 11,04,237 youths — 3,86,699 females and 7,17,530 males– who registered themselves with different employment exchanges in the state till May 31, 2024, only 8,401 have landed jobs through the state’s Skill Development and Employment Exchange in the last 10 years,” he said in his written response to a query by BJD MLA Dhruba Charan Sahu. 

The Minister said that the highest 1,37,986 people registered at the special employment exchange for SC/ST. A total of 57,855 people registered with the employment exchange in Puri, followed by 54,001 in Berhampur in Ganjam district, 53,842 in Kendrapada, 53,084 in Balasore and 52,169 in Rourkela in Sundargarh district.

“To create employment opportunities, Odisha Skill Development Authority (OSDA) has been organising job fairs. 412 job fairs were organised and appointment letters were given to 2,05,980 people between 2008-09 and 2023-24. The OSDA in partnership with reputed private organisations has also undertaken a placement-linked training programme, through which employment was given to 3,964 people during 2022-23 and 3,922 people in 2023-24. The state government has also created opportunities for 21,140 youths through various employment and self-employment training programmes. It also provides pre-recruitment training to youths for their selection in the Army,” Swain said.

The state has 72 Industrial Training Institutes (ITIs) and 34 polytechnics through which skill development training was being provided, he added.

ODISHA SCORES LOW

Despite declining by three percentage points in 2022-23 (FY23) compared to FY19, Odisha’s unemployment rate remained higher than the average in India, according to the data from the annual Periodic Labour Force Survey (PLFS) in October 2023.

The rate of unemployment for those aged 15 years and above was 7% in Odisha in FY19. It dipped to 3.9% in FY23. In the same period, India’s unemployment rate decreased from 5.8% to 3.2%. Just 13% of the state’s workers are in regular employment, compared to 21% across the country.

Odisha also ranked 21st among the 22 states on the International Labour Organization’s employment condition index, evaluated on quality and conditions of employment, in its India Employment Report 2024 report. “Significant variations in employment outcomes exist across states, with certain states consistently ranking lower in employment indicators. States like Bihar, Uttar Pradesh, Odisha, Madhya Pradesh, Jharkhand, and Chhattisgarh have struggled with poor employment outcomes over the years, reflecting the influence of regional policies,” the report stated.

Gender-wise, the male employment condition index in Odisha was 22 (rank among 22 states) in 2005 as well as 2022. The state saw slight improvement in the female index from 22 in 2005 to 21 in 2022.

Analysts attribute this partly to more than 7 million women engaged in the Mission Shakti scheme, which has created over 600,000 self-help groups.

POLL PROMISES
In the run-up to the twin polls in Odisha, the then Chief Minister Naveen Patnaik  announced 200,000 government jobs in the next five years if his Biju Janata Dal (BJD) returned to power for a sixth term. The BJP had promised 350,000 employment opportunities, including filling up 150,000 vacant government posts, by 2029.

The Congress, on the other hand, had vowed to provide jobs for 500,000 youths and offer an unemployment allowance of Rs 3,000 per month.