The recently released data from Employee’s Provident Fund Organization (EPFO) showed that fresh formal job creation hit a six-month low in September. The formal-sector employment declined for the second time in a row in the past two months, depicting a concerning downturn in the labor markets in the third quarter of FY24. The new monthly subscribers under the Provident Fund of Employees reportedly also declined to 891583 showing a depreciation of 6.45 percent, which was earlier 953,092 in August. On Monday, the Employees’ Provident Fund Organization recently released payroll which showed the concerning downturn in the labor markets this financial year. You are asked to stick with this page and go through this article till the end. Scroll down the page.
On Monday, November 20, 2023, the Employees’ Provident Fund Organisation (EPFO) claimed that the number of new monthly subscribers under the Employees’ Provident Fund (EPF) lowered to 891,583 in September from 953,092 by 6.45 percent in August. Reportedly, the EPFO calculated this reduction in the fresh formal job creation by taking into account the number of new subscribers, the return of old subscribers, and the number of exits, which have increased to 1.72 million in September from 14.9 million in August. Drag down the page and read more details.
The net payroll for a month’s numbers are provisional in nature and are often revised sharply the next month. Therefore, the new EPF subscriber figure has greater certitude than net additions. The share of women declined to 25.3 percent 226,392 women in September from 26.12 percent 248,980 women in August, of the 891,583 fresh EPF subscribers in September month. However, the share of people belonging to the age group of 18-28 years among the new subscribers stood at 68.8 percent of 613,471 subscribers in September, which is slightly above 67.93 percent of 647,522 subscribers in August. This is important because subscribers in this age group are usually first-timers in the labor market.
The labor ministry shared a statement that said around 41.46 percent of net membership was from expert services consisting of manpower suppliers, security services, normal contractors, and miscellaneous activities. stated, “A month-on-month comparison of industry-wise data displays significant growth in the members working in establishments engaged in the sugar industry, courier services, iron and steel, hospitals, travel agencies, etc,” According to CMIE (Centre for Monitoring Indian Economy), the labor market fared well in September, which can be attributed by the fact that the unemployment rate dropped to a one-year low as joblessness in rural areas reduced along with a drop in the labor participation rate and unfavorable monsoon.