A recent report posted on Business Standard notes that in September
2023, 950,527 new formal employees joined the EPF.
The number of fresh formal jobs generated in a month increased to a
seven-month high in April, signalling a recovery in the formal labour market in
the country, according to the latest monthly payroll data released by the
Employees' Provident Fund Organisation (EPFO) on Thursday.
In April, the number of new monthly subscribers under the Employees'
Provident Fund (EPF) sequentially increased by 18.77 per cent to 887,438 from
747,146 in March.
Previously, in September 2023, 950,527 fresh formal employees had joined
the EPF.
The EPFO data is considered crucial as only the formal workforce enjoys
social security benefits and is protected by labour laws.Of the total 887,438
new EPF subscribers in April, the share of young people belonging to the 18-28
age group declined to 65.5 per cent (581,106) from 66.74 per cent in the
preceding month. This is crucial because subscribers in this age group are
usually first-timers in the labour market, thus reflecting its robustness.
Additionally, the share of women among the total new subscribers
increased to 28.1 per cent (249,254) during the month, compared to 26.8 per
cent (199,998) in March.
Meanwhile, the net payroll additions - calculated by taking into account
the number of new subscribers, the number of subscribers that exited, and the
return of old subscribers to the social security organisation - increased by
31.94 per cent to 1.9 million in April from 1.44 million in March.However, the
net monthly payroll numbers are provisional in nature and are often revised
sharply the following month. That is why the new EPF subscriber figure is
considered more reliable than net additions.
"The payroll data highlights that approximately 1.45 million
members exited and subsequently rejoined EPFO. These members switched their
jobs and reioined the establishments covered under the ambit of EPFO and opted
to transfer their accumulations instead of applying for final settlement, thus
safeguarding long-term financial well-being and extending their social security
protection," said the labour ministry in a statement."The
unemployment rate recorded an uptick in April alongside a fall in the labour participation
rate (LPR) as well as the employment rate. LPR in India inched down to 40.9 per
cent in April from 41.1 per cent in the previous month," CMIE said in a
statement.
The monthly payroll data released by the EPFO is part of the
government's effort to track formal-sector employment by using payrolls as an
instrument.
Since April 2018, the National Statistical Office has been bringing out
employment -related statistics in the formal sector, sharing data from
September 2017 onwards, using information on the number subscribers under the
EPF scheme, the Employees' State Insurance scheme, and the National Pension
System.