Bhubaneswar: The Odisha government is making efforts to attract large investments and set up more industries in the state, with the expectation that industrial growth will create jobs and reduce unemployment. However, district-level data released by the National Statistical Office (NSO) suggests that the relationship between industrialisation and employment is not directly proportional.

The data shows that some of Odisha’s major industrial districts have recorded higher unemployment rates than districts with comparatively fewer industries.

Among the Odisha districts covered in the NSO’s district-level unemployment assessment, Jajpur recorded the highest unemployment rate at 5%, followed by Ganjam and Khordha at 4.1% each. Sundargarh and Cuttack recorded 3.6% each, while Balasore reported 3.3%. The overall unemployment rate for Odisha stood at 2.9%.

In contrast, districts such as Keonjhar, Mayurbhanj, Bolangir and Kalahandi, which have comparatively fewer industries, reported lower unemployment rates of 1%, 1.2%, 1.8% and 2%, respectively.

The figures also show a significant difference in labour force participation. Jajpur recorded an LFPR of only 50%, considerably below the state average of 63.2%. Its worker population ratio (WPR) was also low at 47.5%, compared with the state average of 61.3%.

On the other hand, Kalahandi recorded the highest LFPR at 75.7%, followed by Mayurbhanj at 74.8%, Keonjhar at 73.7% and Bolangir at 69.4%.

The WPR was also higher than the state average in several districts. Kalahandi recorded 74.2%, Mayurbhanj 73.8%, Keonjhar 73% and Sundargarh 68.2%.

High NEET rate a concern

The NSO data also highlights a high proportion of young people who are not in employment, education or training, commonly referred to as the NEET rate.

Balasore recorded the highest NEET rate among the districts covered at 41%, followed by Jajpur at 37.5% and Ganjam at 33.6%. Keonjhar recorded the lowest rate at 16.8%.

The NEET rate was also relatively low in Bolangir at 17.2%, Kalahandi at 18%, Mayurbhanj at 18.4% and Sundargarh at 19%.

The figures indicate that several districts with a higher share of tribal population have comparatively lower NEET rates, while some relatively industrialised districts have higher proportions of people outside employment, education or training.

Industrialisation not automatically creating local jobs

Commenting on the findings, Prabhas Mishra, Assistant Professor at Azim Premji University, said a significant share of jobs created by industrial projects goes to people from outside the district. Locals are often considered mainly for lower-level jobs, he said.

According to Mishra, this could be one reason why unemployment remains relatively high in districts with a larger industrial presence.

He said that an investment of Rs 1 crore is currently generating only around one job in some sectors, while companies are increasingly relying on machines and automation.

Companies may prefer automation to reduce labour costs and avoid challenges associated with a larger workforce, he said. As a result, the growth of industries does not necessarily translate into a corresponding increase in employment opportunities for locals.