New job creation fell for the third month in a row, below 1 million

New Delhi: New formal job creation slowed in December and remained below 10 lakh for the third consecutive month. Figures released by the Employees Provident Fund Organization show the pressure in the job market. The number of new monthly EPF subscribers fell by 14.5 percent to 8,02,250 in December from 9,37,780 in November. Only 7,80,170 subscribers joined Ink in October, the lowest monthly enrollment since May 2021.

Earlier, in 2023, the number of monthly new subscribers was above 10 lakh for 6 consecutive months from April to September. In July, this figure reached an all-time high of 11,59,350.

The net increase in payroll is calculated based on the number of new subscribers, the number of exits and returns of old subscribers. Accordingly, there was an increase of 7.7 percent in December and the number increased to 14,93,031, which was 13,85,923 in November.

New subscribers added in December were 4,46,358 in the 18 to 25 age group, a decline of 15.5 percent compared to 5,28,484 in November. This figure is important because 18- to 25-year-olds are typically new entrants to the labor market and this indicates a boom.

The number of new male subscribers declined by 14.9 percent, while the number of female subscribers declined by 12.9 percent.

According to data released by the Center for Monitoring Indian Economy, the weak jobs performance continued in December and the unemployment rate rose to 8.30 percent in December from 8.03 percent in November. This has happened due to rising urban unemployment.