EPFO Records Significant Surge in Formal Job Creation

Formal job creation saw an 11.9% increase in December, marking the highest in the last three months

February 21, 2024

The net new subscribers added to EPFO in December 2023 increased by 4.62% compared to the same period in 2022, showcasing a positive trend in job market dynamics

Of the total new members added, 57.18% belong to the 18-25 age group, indicating a trend where the majority of new entrants are youth, often first-time job seekers

December witnessed the highest recorded addition of female workforce in the last three months, with around 0.21 million new female members joining EPFO

Maharashtra, Gujarat, Tamil Nadu, Karnataka, and Haryana emerged as the top five states, contributing to 58.3% of the net member addition in December 2023

In December, formal job creation within the Employees’ Provident Fund Organisation (EPFO) increased by 11.9%, reaching 1.56 million, the highest in the past three months. This is compared to the 1.39 million added in November, per the provisional payroll data released by the Ministry of Labour and Employment on Tuesday. Year-on-year, there was a 4.62% rise in net new subscribers to the EPFO, compared to the 1.49 million added in December 2022.

According to the Labour Ministry, the surge in membership is attributed to various factors, including increased employment opportunities, growing awareness of employee benefits, and the effectiveness of EPFO’s outreach programs. Of the total net subscribers added to EPFO in the month, 0.84 million are new members, marking the highest in the previous three months and a 14.2% increase from November 2023. Within this, the 18-25 age group constitutes 57.18% of the total new members, indicating a trend where the majority of those joining the organised workforce are youth, primarily first-time job seekers.

In December 2023, 1.20 million members exited and rejoined EPFO, representing a 12.6% increase from November 2023 and the highest recorded in the past five months. The labour ministry explained that these members switched jobs, rejoining establishments covered under the EPFO ambit and chose to transfer their accumulations, safeguarding their long-term financial well-being and extending social security protection.

Gender-wise analysis reveals that of the 0.84 million new members added, approximately 0.21 million are new female members, the highest recorded addition of female workforce in the last three months and a 7.57% increase from November 2023. The net female member addition during the month stood at around 0.29 million, reflecting an increase of approximately 3.54% compared to the previous month of November 2023. According to the ministry, the surge in female member additions indicates a broader shift towards a more inclusive and diverse workforce.

Maharashtra, Gujarat, Tamil Nadu, Karnataka, and Haryana emerged as the top five states in job creation, contributing 0.91 million or 58.3% of net member additions in December 2023. The payroll data is provisional, and updates are continuous, as employee records are regularly updated. EPFO has been releasing payroll data since April 2018, covering the period from September 2017 onwards. The monthly payroll data considers the count of members joining EPFO for the first time through an Aadhaar-validated Universal Account Number (UAN), existing members exiting, and those who exited but re-joined as members to determine the net monthly payroll.

Source: Economic Times

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