According to an analysis of the data released by the Employees’ Provident Fund Organization (EPFO), 87.1 lakh new formal jobs were generated in India during the first half of the current financial year (H1 FY23), a 35 % rise from H1 FY22.
- There were 24.6 lakh and 64.72 lakh formal jobs generated in India in the first halves of FY21 and FY22, respectively.
EPFO payroll data covers the organised sector’s workforce for enterprises with more than 20 employees and provident fund accounts.
Significance
i.In Q2 FY23, formal job creation increased slightly to 47.4 lakh, up from 39.3 lakh in Q1 FY 23.
- In September 2022, 16.82 lakh jobs were added, which was the largest in FY23.
ii.Around 25,330 new companies began adhering with the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 in H1, assuring social security coverage for their employees.
Key Points:
i.According to the disaggregated statistics released by EPFO, the sector providing expert services saw a significant increase in job creation.
- The category, which also includes small contractors, private security firms, and manpower agencies, contains almost 36 lakh jobs.
- It is subsequently followed by trading-commercial establishments and engineering.
ii.Additionally, data demonstrates that states with higher contributions from the service sector, like Maharashtra, Karnataka, and Tamil Nadu, created the most formal jobs.
iii.While Maharashtra saw an increase in formal employment of 18.29 lakh during H1, Karnataka and Tamil Nadu saw increases of 9.87 lakh and 9.18 lakh, respectively.
iv.Himachal Pradesh (0.67 lakh new jobs), Jharkhand (0.8 lakh), and Chhattisgarh (0.84 lakh) lag behind among the bigger states.
v.Also, 22.8 lakh people in the 22–25 age group were employed in formal jobs during H1 FY23, making up “Generation Z” as the largest share of the workforce.
- In contrast, only 12.03 lakh people aged 26 to 28 years and 15.6 lakh people aged 35 years and above were able to secure new formal jobs.
Recent Related News:
According to the vision document of EPFO released in November 2022, Delhi topped the chart in terms of the EPFO coverage with 61.5% of their working population under the social security ambit of the organisation. EPFO coverage is at its lowest in Tripura (2.1%), Assam (2.8%), and Meghalaya (2.8%).
About the Employees’ Provident Fund Organization (EPFO):
EPFO was established under the Ministry of Labour & Employment (MoL&E).
Chief Executive Officer(CEO) – Neelam Shami Rao
Headquarters – New Delhi, Delhi
Establishment – 1952
