Employment Patterns and Gender Disparities in Odisha’s Agri-economy

As a predominantly agrarian state, Odisha engages about 55 per cent of its rural population (and 40 per cent of its total workforce) in agriculture and allied activities, as per Odisha’s Economic Survey. With a growth rate of 6.3 per cent in 2020-21, the sector grew at almost twice the all-India rate. However, Odisha’s economy has undergone structural changes similar to that of other states. There have been inter-sectoral shifts in employment to industry and services. Although overall agricultural wages have increased in Odisha, it still lags behind the all-India growth rate.

Although over 50 per cent of rural women work in the agricultural sector in Odisha, they face discrimination in wages. This data story unpacks the state’s employment dynamics and spotlights the ongoing transformations unfolding within its economy.

Trends in inter-sectoral shifts in employment

The shift from agriculture to industry and services is evident from Table 1. While agriculture continues to be a significant contributor to the state’s economy, its share in the Gross State Domestic Product (GSDP) of Odisha is slightly lower compared to that of industry and services. 

Before the COVID-19 pandemic, the industry sector consistently achieved the highest average growth rate, reaching 7 per cent. In 2022-23, the industry sector is projected to maintain its growth momentum at 6.1 per cent. The mining sector alone contributes significantly, accounting for over 10 per cent of the Gross State Value Added (GSVA). Similarly, the services sector has become increasingly significant, comprising nearly 36 per cent of the GSVA in the same year.

Table 1: GSVA Share (At Current Prices, in per cent)

Source: Odisha Economic Survey, 2022-23 

From table 1 we can see that over the past few decades, Odisha’s economic landscape has undergone significant changes. The agriculture sector, which had once dominated the Gross State Value Added (GSVA) at 33 per cent in 1993-94, has witnessed a gradual decline, reaching a low of 18 per cent in 2011-12 but showing signs of recovery at 26% in 2020-21. In contrast, the industry sector has experienced substantial growth, peaking at 44 per cent in 2011-12, and although it had slightly decreased to 37 per cent in 2020-21, it remains a vital part of the state’s economy. Similarly, the services sector has steadily expanded its contribution, reaching 37% in 2020-21, reflecting a broader economic diversification in Odisha.

In 1993-94, 72 per cent of the rural population was employed in agriculture. But, over the next few years participation in the rural agricultural workforce declined steadily and dropped to 52 per cent in 2020-21. This trend is indicative of a shift towards diversification of employment opportunities, as seen by the concurrent growth in other sectors. The industrial sector’s share of employment in rural areas increased from 9 per cent in 1993-94 to 28 per cent in 2020-21. Urban areas, on the other hand, have experienced a gradual increase in non-agricultural employment, with industry and services sectors steadily gaining prominence. 

Table 2: Employment share across sectors (in per cent)

Source: Odisha Economic Survey, 2022-23

In recent years, there has been a decline in agricultural employment rates within rural Odisha. In 2019-20, approximately 55.1 per cent of the rural population in Odisha was employed in agriculture. However, this figure decreased to 51.04 per cent in 2021-22. This trend is not unique to Odisha alone; rural India as a whole has seen a dip in agricultural employment rates. In 2019-20, 61.52 per cent of rural workers were engaged in agriculture, a number that dropped to 60.76 per cent in 2020-21 and further declined to 59.01 per cent in 2021-22. Both rural Odisha and India witnessed reductions in agricultural employment rates, yet rural Odisha consistently exhibited lower employment rates compared to the national average. 

Participation of Women in agriculture

Odisha has witnessed a notable increase in female labour force participation in the agriculture sector, reflecting a shift in employment patterns. In 2018-19, the female workforce in agriculture stood at 43.8%, and this proportion steadily rose to 57.2 per cent in 2019-20. Although there was a slight dip to 54.2 per cent in 2020-21, the trend remained upward. In comparison, the secondary and tertiary sectors recorded lower female participation rates in the same period, with the secondary sector at 21 per cent in 2019-20 and the tertiary sector at 19.6 per cent in 2020-21.

In contrast, the male labour force participation rate in Odisha’s agriculture sector has exhibited relative stability, fluctuating within the range of 36 per cent to 43 per cent (with a surge during the Covid 19 pandemic). In parallel, the tertiary sector has undergone expansion, absorbing 33 per cent of the male workforce, indicative of a shift towards service-oriented employment. While female labour force engagement in the agriculture sector displays a rising trajectory, male participation in agriculture demonstrates a diminishing trend. However, unlike female workers, there is an increasing presence of male workers in both the secondary and tertiary sectors.

Trends in agricultural wages 

While agricultural wages in Odisha have shown a consistent increase over the years, they persistently lag behind the national average. As of 2021-22, Odisha ranks 28th out of 36 states and union territories in terms of daily agricultural wage levels.  

In 2019-20, Odisha’s agricultural daily wage stood at Rs. 219, slightly trailing the All India average wage of Rs. 233, reflecting a 6.1 per cent differential. However, this disparity expanded notably in the following years. By 2020-21, Odisha’s wage had risen to Rs. 228, while the All India average wage had surged to Rs. 257, resulting in a more pronounced 11.9 per cent gap. This trend persisted into 2021-22, with Odisha’s wage compared to the All India average wage demonstrating a substantial 13.3 per cent divergence.

Gender Disparity in Wages

Across the three-year span, both male and female agricultural labourers in Odisha and All India witnessed wage increases. However, there is a notable gender disparity, with male agricultural labourers consistently earning higher wages than their female counterparts. Interestingly, the gender wage gap in both rural Odisha and rural India has been consistently increasing over the last three years. While the gender wage gap in rural Odisha is slightly lower than that in rural India, the difference is not substantial. 

In 2019-20, the gender wage gap in rural Odisha was 34.4 per cent. In 2020-21, the gap increased by 19 per cent % to 38.9 per cent. By 2021-22, the gender wage gap in rural Odisha narrowed negligibly. At all India levels too, it oscillated within a narrow band of 36.2 per cent in 2019-20 to 38 per cent in 2021-22.  

This trend shows contradictory rural agricultural labour dynamics in both Odisha and India: an expanding female workforce but with consistently lower wages than men. 

It is clear that female labour force participation in agriculture has grown over time. However, it is at the expense of secondary and tertiary sectors. Furthermore, the wage data paints a somewhat dismal picture in terms of the gender wage gap. Both these data points warrant a deeper examination by policy experts.