India’s formal job market faced a significant decline in August 2024, as all three major social security schemes recorded a fall in new subscribers.
The Ministry of Statistics and Programme Implementation (MoSPI) released its report titled “Payroll Reporting in India: An Employment Perspective – August 2024,” shedding light on the employment landscape during that period.
India’s Job Market: Key Findings
Employees Provident Fund (EPF) Subscriptions: The number of new EPF subscriptions fell by 15% month-on-month, totaling approximately 930,000 in August.
Notably, this decline was more pronounced among women, with a 20.3% drop, compared to a 13.4% decline for men.
EPF remains a crucial social security scheme for formal employment, and this reduction in subscriptions raises concerns about job creation.
Employees State Insurance Corporation (ESIC) Subscriptions: ESIC, another significant social security scheme, witnessed an 11% decrease in new subscriptions, reaching 1.5 million in August.
The decline affected both men (10.2%) and women (14.4%).
National Pension Scheme (NPS) Subscriptions: NPS, which caters to retirement savings, experienced a 13% decline in new subscribers, totaling 54,869.
Interestingly, NPS subscriptions increased from the central government and private sector but decreased from state governments.
Gender Disparities: The decline in new subscriptions was more pronounced among women across all three schemes.
Women faced a tougher hit in EPF (20.3%), ESIC (14.4%), and NPS (18.2%) compared to their male counterparts.
Between April and August 2024, new subscriptions to EPFO (Employees’ Provident Fund Organization) and NPS declined by 3.7% and a staggering 50.4%, respectively.
In contrast, ESIC subscriptions increased by 22% during the same period.
Implications
The decline in formal job subscriptions has several implications for the Indian economy:
The reduction in formal job additions raises concerns about the pace of economic recovery. A robust job market is essential for sustained growth.
The disproportionate impact on women highlights the need for targeted policies to promote female workforce participation.
Policymakers must address the challenges faced by formal job seekers, encourage entrepreneurship, and create an enabling environment for job creation.
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