New Delhi: India’s formal job sector saw 19.94 lakh net jobs created in July 2024, as indicated by the number of new subscribers added to the Employees Provident Fund Organization (EPFO), the state-run retirement fund manager. This is the biggest monthly addition to the organised workforce since the government started tracking payroll data in April 2018, Union labour and employment minister Mansukh Mandaviya said Monday, releasing the EPFO’s provisional payroll data.
Mandaviya said that this indicated recovery in the organised labour market, adding that a huge capital expenditure (capex) push as well as support from government initiatives, such as production linked incentives and Startup India, contributed to the growth in jobs in the formal sector.
Of the overall 19.9 lakh, there were 10.52 lakh new members in July 2024—an increase of over 2.66 percent from June 2024, highlighting growing employment opportunities and increased awareness of employee benefits, Mandaviya added.
“The provisional data reflects a significant rise in formal sector jobs for youth,” Mandaviya said.
Over 20 percent of new members from Maharashtra
Maharashtra, Karnataka, Tamil Nadu, Haryana, and Gujarat accounted for 59.27 percent of net member additions in July 2024. Of the five states, Maharashtra alone contributed 20.21 percent of the total new additions.
EPFO has been publishing payroll data since April 2018, with reports covering the period from September 2017 onwards, a labour ministry official told ThePrint. The net monthly payroll numbers are, however, provisional and are mostly revised the following month.
Addressing a press conference, the labour and employment minister said that it was in the 18-25 age group that the highest-ever growth was observed, with 8.77 lakh net additions in the formal sector. This age group represents 59.41 percent of all new members that were added during the month, according to the provisional EPFO data.
“Basically, this shows that more and more young first-time job seekers are entering the organised workforce,” Mandaviya said.
The payroll data includes first-time members, who have joined EPFO through the Aadhar-validated Universal Account Number (UAN), as well as those who exited and later rejoined.
The top sectors which saw the greatest number of net EPFO member additions were construction, engineering, banking (non-nationalized), manufacturing, marketing, and computer service. Over 38 percent of net additions came from consultancy services, including manpower suppliers, contractors, and security services.
Rise of female workforce joining formal job sector
The provisional payroll data also shows that 3 lakh new female members entered the formal job market in July, reflecting a y-o-y growth of 10.94 percent.
“Overall, 4.41 lakh net female members were added, the highest ever monthly addition for women. It conveys a more inclusive workforce with growing female participation,” Mandaviya said.
It is driven by government initiatives supporting female employment with a focus on tertiary and secondary education, skill development, and working women’s hostels, he added.
(Edited by Sanya Mathur)
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