November 2024 saw a decline in formal employment numbers in India, with significant drops in new subscriptions to key social security schemes, according to a report released by the Ministry of Statistics and Programme Implementation (MoSPI).
This report highlights the fluctuating dynamics of the formal job market and raises concerns about the underlying factors contributing to this decline.
The Employees’ State Insurance Corporation (ESIC) and the National Pension Scheme (NPS) both experienced notable declines in new subscriptions.
ESIC subscriptions fell by 9.6% to 1.2 million in November from 1.3 million in October, marking the lowest level since April 2024.
Similarly, NPS subscriptions saw a sharp decline of 37% to 40,920 from 64,977 over the same period.
These declines indicate a significant reduction in formal employment opportunities within these schemes.
EPFO Shows Growth Amidst Decline in Formal Employment
In contrast to the declines in ESIC and NPS, the Employees’ Provident Fund Organisation (EPFO) recorded an 11.2% increase in new subscriptions, reaching 0.87 million in November from 0.79 million in October.
Despite this growth, November’s EPF subscriptions were the lowest recorded in 2024-25 after October.
The gender-wise analysis showed a higher rise in male EPF subscriptions compared to females.
Gender-Wise Analysis
The report also provided a gender-wise analysis of new subscriptions.
The number of new male subscriptions to EPF increased by 11.5% to 0.6 million in November from October, compared to a 10.5% rise to 0.2 million in female subscriptions in the same period.
For both ESIC and NPS, the decline was more pronounced among males.
The number of new male ESIC subscriptions fell by 10.6% in November from October, while female subscriptions declined by 5.8%.
Employment Trends and Challenges
The data reflects the fluctuating dynamics of formal sector employment, as captured through payroll reporting based on contributions to these key government-backed social security schemes.
The decline in ESIC and NPS subscriptions suggests challenges in maintaining steady employment growth, while the growth in EPFO subscriptions indicates some positive momentum in higher-paying formal employment.
Note: We are also on WhatsApp, LinkedIn, Google News, and YouTube, to get the latest news updates, Subscribe to our Channels. WhatsApp– Click Here, Google News– Click Here, YouTube – Click Here, and LinkedIn– Click Here.
