Odisha’s Rising Construction Worker Registrations Amid Employment Challenges

Odisha’s Rising Construction Worker Registrations Amid Employment Challenges

Sub : Schemes

Sec: Economy

• Significant Increase in Registrations with OBCWWB:
  • Over 42.66 lakh people have registered as construction workers with the Odisha Building and Other Construction Workers’ Welfare Board (OBCWWB).
  • Almost every daily wage earner in Odisha is now identifying as a construction worker.
  • Registrations are driven by workers’ need to access welfare benefits provided by OBCWWB, which include assistance for accidents, medical emergencies, education, and housing under schemes like Nirmana Shramik Pakka Ghar Yojana.
• Mismatch Between Registrations and Sector Capacity:
  • Experts argue that the construction sector in Odisha is not large enough to support such a huge labor force.
  • The number of registered workers (42 lakh) significantly exceeds the sector’s realistic employment capacity.
  • Many casual laborers identify as construction workers to access social security benefits, leading to the issue of “ghost beneficiaries”.
• OBCWWB Welfare Fund and Collection:
  • A 1% construction cess is collected from all construction activities in the state, which is deposited into the OBCWWB Fund.
  • ₹4,571.84 crore has been collected so far, and ₹3,588 crore has been spent on welfare measures.
  • The government now targets to collect ₹1,000 crore annually for the fund.
• Economic and Employment Data from Odisha:
  • According to the Odisha Economic Survey 2023-24, the state has a population of 351 lakh people in the age group of 15 and above, out of which 214 lakh are part of the labour force.
  • Of this labor force, 96% (205.3 lakh) are employed. 64% (131.6 lakh) are self-employed, and the remaining 36% are either regular wage workers or casual workers.
  • Odisha’s unemployment rate for the first quarter of this fiscal is 8.2%, higher than the all-India average of 5.8%.
• Limited Job Creation and Skills Mismatch:
  • The construction sector cannot accommodate the vast number of registered workers, highlighting the employment challenges.
  • Between 2020 and 2024, 9,90,696 people registered at employment exchanges in the state, but only 1,176 obtained jobs.
  • Odisha faces a skills gap, with a large number of technical jobs going to workers from outside the state due to local workers lacking requisite skills.
• Government Initiatives and Promises:
  • The BJP, which came to power in Odisha in May 2024, promised to create 1.5 lakh jobs in the government sector.
  • The government has also committed to creating more than 3.5 lakh jobs in sectors like automobiles, semiconductors, and IT/ITES.
  • 65,000 vacant government positions are expected to be filled in the next two years, with recruitment to be fair and transparent.

In conclusion, the surge in registrations with OBCWWB reflects the desperation of workers in Odisha to access social security benefits, while the state’s employment scenario remains challenging with a high unemployment rate and a significant skills gap.

Building and Other Construction Workers Act, 1996

This Act was introduced to regulate the employment conditions and ensure the welfare and safety of construction workers. It applies to any establishment employing 10 or more workers in building or other construction work.

• Welfare Provisions:
  • Establishment of Welfare Boards at state levels.
  • Registration of workers to provide them access to welfare schemes.
  • Benefits such as maternity leave, accident insurance, pension, and housing assistance.
• Regulation of Employment:
  • Regulates working hours, wages, and employment conditions.
  • Promotes safety measures at construction sites to prevent hazards.
• Establishment of Cess:
  • A cess (tax) is levied on employers, which funds welfare measures for workers.
• Coverage:
  • Covers all workers involved in construction, including building roads, bridges, and projects requiring manual labor.
• Social Security Schemes:
  • Includes health insurance, disability compensation, scholarship schemes for children, and other financial support systems.

Nirman Shramik Pakka Ghar Yojana (Odisha)

This is a welfare scheme by the Government of Odisha aimed at providing permanent houses to registered construction workers in the state.

• Eligibility: Registered construction workers under the Odisha Building and Other Construction Workers’ Welfare Board.
• Financial Assistance: Workers are provided monetary support for building pucca houses.
• Objective: To improve the living conditions of workers by ensuring they have durable housing.