Fresh formal youth employment gathered momentum in the April-May period, as the number of subscribers under the Employee Provident Fund (EPF) belonging to the 18-28 age group increased by 3.3 per cent year-on-year (Y-o-Y) in FY25 to 1.27 million, latest payroll data released by the Employee Provident Fund Organisation (EPFO) on Saturday showed.
Earlier, the number of young EPF subscribers in the same age bracket had contracted by nearly 10 per cent Y-o-Y to 1.23 million during these two months of FY24.
Tracking the first-time job seekers in India is crucial as around 8 million youth enter the labour market annually, and high youth unemployment signals challenges in the job market.
According to the EPFO data, the number of fresh women subscribers has also grown by 4.1 per cent Y-o-Y to 507,000 in the April-May period in FY25. Earlier, the number of women EPF subscribers had contracted by 11 per cent to 487,900 during April-May in FY24.
“This is in consonance with the earlier trend which indicates that most individuals joining the organised workforce are youth, primarily first-time job seekers. The surge in female member additions is [also] indicative of a broader shift towards a more inclusive and diverse workforce,” the labour ministry said in a statement on Saturday.
Suchita Dutta, executive director of the Indian Staffing Federation (ISF), says that the ‘expert services’, which primarily consist of employment in the staffing industry, have consistently been driving this new employment growth involving young and women employees.
“Among various factors responsible for this increased youth and women employment are increased investment in skill development programmes targeting youth and women, matching demands in respective sectors, along with the expansion of digital literacy initiatives to enhance employability. Moreover, a focus on creating a supportive work environment for women to improve their participation in the workforce is also bearing results,” she added.
Meanwhile, Rituparna Chakraborty, co-founder of Teamlease Services, says that during the first quarter of any financial year, firms usually prepare a holistic view of their workforce requirements and kickstart recruitments leading to new hirings.
“This year, the overall hirings have also seen a slight improvement as compared to the dip seen during the last financial year. Whenever opportunities increase, it is invariably the young and women who benefit from them, and this is what is happening this time. It is high time that the hiring momentum generated in the first quarter continues in the short-medium term as the long festive season is also going to begin, generating more new jobs and opportunities for the young and women,” she added.
Monthly payroll data released by the social security organisation has shown that the total number of fresh formal jobs created in May increased to a ten-month high, signalling a recovery in the formal labour market in the country. Cumulatively, 1.91 million subscribers have joined the EPF in the April-May period this financial year, as compared to 1.89 million in the corresponding period in FY24.
Previously, 2.12 million subscribers had joined the EPFO during these two months in FY23.
The monthly payroll data released by the EPFO is part of the government’s effort to track formal-sector employment by using payrolls as an instrument. From the month of April 2018, the EPFO has been releasing payroll data covering the period from September 2017 onwards. Along with it, the National Statistical Office (NSO) has also been bringing out employment-related statistics in the formal sector, using information on the number of subscribers under the Employees’ State Insurance Scheme, and the National Pension System.
First Published: Jul 21 2024 | 6:51 PM IS