India’s employment in the formal sector, which offers better quality jobs, has kept up its growth momentum during the first half of the current financial year with an increase in new additions across the three social security schemes compared to the same period last year, according to official figures.
New enrolments to the Employees’ Provident Fund scheme, which applies to larger organisations and better-paid employees, increased by 2.3 per cent 6.1 million in the first half of 2024-25 (April – September) compared to the same period of the previous year. New subscriptions to Employees’ State Insurance Corporation, which applies to smaller organisations, grew at a faster pace of 5.2 per cent with 9.3 million additions during the first half of the current financial year. Similarly, subscriptions to the National Pension System were also 6.8 per cent higher reflecting the rising number of employees coming into better job streams.
This improvement in the quality of jobs has also been observed in the latest monthly review of the economy by the Finance Ministry. “On the employment front, the formal workforce is expanding, with notable increases in manufacturing jobs and a strong inflow of youth into organised sectors,” the Finance Ministry’s report states.
According to the report, the Employees’ Provident Fund Organization (EPFO) added 9.5 lakh new members in September 2024. Notably, 59.9 per cent of the new members added in September 2024 were in the 18 – 25 age group, consistent with the trend that most individuals joining the organised workforce are youth, mainly first-time job seekers. The purchasing managers’ employment sub-index remained strong, continuing to be in the expansionary zone for the eighth consecutive month in October. Though employment in the manufacturing sector softened in September, ‘it regained momentum with the resurgence of the sub-index in October, the report points out. Employment in services witnessed a marked expansion with the employment sub-index being at the highest level in the past 26 months. The Naukri Jobspeak index signals expansion in hiring activity in white-collar jobs with strong growth in October 2024, reaching 2733 points and marking a significant 10 per cent year-on-year increase, the report added.
