Bhubaneswar: Odisha’s labour market has presented a mixed picture, with recent findings highlighting improvements in job quality and workforce participation while also exposing serious concerns over wage violations and informal employment.

A study released by the State Bank of India, based on the Periodic Labour Force Survey (PLFS) 2025, has identified Odisha as one of the states with a high labour force participation rate (LFPR) and better job quality. However, the report also revealed that nearly 66 per cent of casual workers in the state are receiving wages below the mandated minimum wage.

The report, prepared using PLFS 2025 unit-level data for the first time, offers a detailed analysis of India’s labour market, covering employment trends, informal jobs, women’s participation in the workforce, and implementation of minimum wage laws across states.

Odisha Among Better-Performing States in Job Quality

According to the report, Odisha, along with states such as Karnataka and Tamil Nadu, has performed well in terms of both labour force participation and quality of employment.

The “Work Quality Index” in the study considered factors such as written employment contracts, paid leave, and access to social security benefits. The findings indicate that Odisha has not only improved in job creation but also in ensuring greater job stability and security for workers.

Weak Enforcement of Minimum Wage Laws Raises Concern

Despite the positive indicators, the report flagged weak implementation of minimum wage laws as a major concern in Odisha.

It stated that around 66 per cent of casual labourers in the state are earning less than the prescribed minimum wage. Odisha ranks second in the country after Chhattisgarh in terms of the share of casual workers being underpaid.

Experts said inadequate monitoring in sectors such as construction, industries, and the informal economy has worsened the problem. The findings are being seen as a warning sign for the labour department and enforcement agencies.

Informal Employment Continues to Dominate

The report also highlighted the continued dominance of informal employment in Odisha. Nearly 70 per cent of workers in the state are still dependent on the informal sector, lacking access to benefits such as social security, pensions, written contracts, and paid leave.

Agriculture remains the largest source of informal employment in the state. Besides agriculture, sectors such as trade, hospitality, construction, and services also employ a significant number of informal workers.

Positive Trend in Women’s Employment

The report pointed to encouraging trends in women’s employment as well. Women-led households are increasingly witnessing more stable employment opportunities and regular salaries, while dependence on casual labour is gradually declining.

Experts attributed this improvement to rising levels of women’s education, skill-based training programmes, and government welfare initiatives aimed at boosting female workforce participation.

Challenges Remain Despite Progress

While the report presents Odisha’s improving labour market as a positive sign for the state government, it also underlines major challenges related to labour law enforcement and reforms in the informal sector.

The study noted that although industrialisation and infrastructure development are progressing rapidly in Odisha, the benefits are yet to fully reach workers at the lower end of the labour market.

Experts suggested that stricter enforcement of minimum wage laws, expansion of social security coverage for informal workers, and greater investment in skill development programmes could help strengthen Odisha’s labour market in the coming years.