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Formal job creation continues to gather steam in January, shows govt data

Formal job creation continues to gather steam in January, shows govt data

The number of members ceasing EPF subscription declined to 2.68 lakh in January from 5.79 lakh a month ago.

The EPF and ESI data for January showed that maximum jobs were created in 18-25 years age group, which indicates pick up in fresh hiring at entry level. The EPF and ESI data for January showed that maximum jobs were created in 18-25 years age group, which indicates pick up in fresh hiring at entry level.

Formal job creation in the economy continued to improve in January 2021, with the Employees' Provident Fund (EPF) scheme seeing net addition of 13.35 lakh workers during the month as compared with 10.81 lakh in December 2020 and 7.71 lakh in November.

Similarly, a total of 11.55 lakh newly registered employees contributed to the Employees' State Insurance (ESI) scheme in January, slightly lower than 12.22 lakh in December 2020, payroll data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Thursday showed. The number stood at 9.52 lakh in November 2020, 12.09 lakh in October 2020 and 11.58 lakh in September 2020.

For National Pension Scheme (NPS), the total new subscribers stood at 53,927 during January 2021 as against 53,040 in December 2020 and 54,482 in November 2020.

The number of members ceasing EPF subscription declined to 2.68 lakh in January from 5.79 lakh a month ago. After increasing from April-June 2020, the lockdown months, the number of subscribers ceasing EPF subscription has been decreasing gradually every month. While 10.39 lakh people had ceased EPF subscription in June 2020, the number stood at 9.01 lakh in July 2020, 8.47 lakh in August 2020 and 8.04 lakh in September 2020.

Also read: India's formal job creation numbers beat pandemic blues

The lockdown imposed in March last year to curb the spread of COVID-19 infections had hit the economy and led to job losses. The Indian economy contracted by 24.4 per cent in April-June 2020 and 7.3 per cent in July-September quarter, before returning to positive territory in October-December quarter by rising 0.4 per cent. The payroll data is in sync with the pick up and recovery seen in the economy.

The EPF and ESI data for January showed that maximum jobs were created in 18-25 years age group, which indicates pick up in fresh hiring at entry level.

EPF covers every establishment in which 20 or more persons are employed and has a pay ceiling of Rs 15,000 per month, while social security scheme ESI is applicable to non-seasonal, manufacturing establishments employing 10 or more workers with wages up to Rs 21,000 per month.

Since April 2018, MoSPI has been releasing employment related statistics in the formal sector covering the period September 2017 onwards, using information on the number of subscribers who have subscribed under three major schemes -- EPF, ESI and NPS.

Also read: Confident of India's growth not being affected by 2nd COVID-19 wave: Shaktikanta Das

Published on: Mar 25, 2021, 5:00 PM IST
Posted by: Mohammad Haarisbeg, Mar 25, 2021, 5:00 PM IST