Hiring In Formal Sector Slips 20.8 Per Cent In Oct As Additions Reach 7-Month Low

The data showed that the number of new monthly subscribers under the EPF (Employees’ Provident Fund) plunged by 20.8 per cent to 750,000, in comparison to 947,000 additions seen in September

The net payroll additions touched 1.34 million in October, slipping nearly 5 per cent from 1.41 million subscribers added in the preceding month.

Source : Unsplash

Fresh formal hiring in India declined in October, official data revealed. The number of monthly fresh formal hirings tanked majorly in the month under review, the latest monthly payroll data released by the Employees’ Provident Fund Organisation (EPFO) on Wednesday showed.

This decline indicated a fall in the formal labour market during the month. The data showed that the number of new monthly subscribers under the EPF (Employees’ Provident Fund) plunged by 20.8 per cent to 750,000, in comparison to 947,000 additions seen in September. The additions reached a seven-month low in October.

Share Of Freshers In Subscriber Additions

From the overall 750,000 new EPF subscribers added in October, young people aged 18-25 accounted for 58.5 per cent or 438,700. In comparison, the share of this age group in the additions stood at 59.94 per cent or 567,700 in the preceding September month.

This decline in the share of the younger age group was a significant indicator as typically subscribers in this age are freshers in the labour market, reflecting its robustness.

Notably, the EPFO data is considered important to understand the condition of the formal labour market, as only the formal workforce avails the social security benefits and protection under labour laws.

Women In New Additions

At the same time, women accounted for 27.9 per cent or 209,000 of the new additions in October, in comparison to 26.1 per cent or 247,000 subscribers added in September.

The labour ministry in a statement noted, “The increase in female member additions is indicative of a broader shift towards a more inclusive and diverse workforce.”

The net payroll additions touched 1.34 million in October, slipping nearly 5 per cent from 1.41 million subscribers added in the preceding month. The net payroll additions are calculated after taking into account the amount of new subscribers, the number of subscribers that exited, and those that returned to the social security organisation.

However, this statistic remains provisional in nature and is often revised sharply in the following month. This is why the new EPF subscriber data is relied upon more against the net additions.