India's Formal Job Market Declined In November: Report (Image: Pixabay)
India’s formal job market reportedly witnessed a decline in November 2023. The Economic Times, citing Ministry of Statistics and Program Implementation data, reported that a 5 percent drop was marked in new subscribers to the Employees” Provident Fund (EPF). Also, a 10.5 percent decline was witnessed in the Employees” State Insurance Corporation (ESIC).
The report says that these are the lowest figures in nearly two years for some funds and insurance. This indicates a decline in fresh formal employment creation. The number of new monthly subscribers under the EPF stood at 736,015 in November. It is a decline from 772,084 in October 2023.
The payroll data of the Employees’ Provident Fund Organisation helps monitor employment creation in the formal sector. This is because it is mandatory for new employees to sign up for a provident fund under the EPFO. The EPFO data is used by government institutions to analyse employment trends in India.
At the same time, the National Pension Scheme (NPS) witnessed a 52 percent rise in new subscriptions. The report says that Private NPS subscriptions are also at their lowest in nearly two years. In December, Business Standard reported that the number of fresh formal jobs created declined by 10 percent in 2023 compared to 2022. The report, citing EPFO data, mentioned that 9.06 million new subscribers joined the EPF between January and October 2023. Notably, the figure was 10.1 million during the corresponding period in 2022.
