New formal jobs fall below 10 lakh in November - EPF data

- The unemployment rate rose to 8.03 percent in November from 7.8 percent in October and 6.4 percent in September due to a large increase in urban unemployment.

New Delhi, Dated 21 January 2023, Saturday

New formal job creation fell below 1 million in November for the second straight month, payrolls data released Friday showed, signaling pressure in the job market. However, after three straight months of declines, new formal jobs rose 17 percent sequentially in November, helped by a low base in October.

The number of new monthly subscribers under the Employees Provident Fund scheme rose to 899,332 in November from 768,643 in October. October saw the lowest monthly enrollment since May 2021, when just 649,618 new customers were added. At the beginning of FY23, the number of monthly new customers remained above 1 million for six consecutive months (April-September), touching a high of 1,159,350 in July. Payroll additions, which are calculated by taking into account the number of new customers, exits and returns of old customers, rose 45.9 percent to 1,625,711 in November, from 1,114,250 in October.

However, monthly payroll numbers are tentative in nature and are often revised sharply in subsequent months. Of the new EPF customers added in November, 509,018 belonged to the 18-25 age group, up 16.5 percent from 436,624 in October. This is important because consumers in the 18-25 age group are typically entering the labor market for the first time and this metric reflects its strength. Rituparna Chakraborty, co-founder of TeamLease Services, said the marginal increase in employment in November was due to companies rationalizing human resources following long-term festive demand in October. "Companies are unlikely to retain large workforces for the rest of the financial year. They may see an increase in their workforce again in the next financial year itself," he added. According to data released by the Center for Monitoring the Indian Economy, which conducts its own surveys, India continued to underperform in jobs in November, with the unemployment rate rising to 8.03 percent in November from 7.8 percent in October and a large increase in urban unemployment. In September it was 6.4 percent.

"Urban India saw a significant increase in job seekers in November. Urban unemployed rose to 12.7 million from 9.9 million in October, an increase of about 2.8 million. This led to urban unemployment rising to 9 percent in November from 7.2 in October. percent, CMIE said in a statement.The monthly data release is part of the government's efforts to track formal sector jobs using payroll as a tool.

Since April, 2018, the National Statistical Office has been releasing statistics related to employment in the formal sector, covering the period after September, 2017, including the number of subscribers under three major schemes, namely the Employees' Provident Fund Scheme, the Employees' State Insurance Scheme and the National Pension System. Information about has been used.