New Delhi: Formal job creation declined for a second consecutive month in September, reaching a six-month low and indicating a downturn in the labour markets for the current financial year, according to Business Standard.
The latest payroll data released by the Employees’ Provident Fund Organisation (EPFO) on Monday, November 20, revealed a 6.45% decrease in the number of new monthly subscribers under the Employees’ Provident Fund (EPF). The number of new subscribers dropped from 953,092 in August to 891,583 in September.
While the net payroll additions – calculated using new subscribers, exits, and the return of old subscribers – rose by 14.9% to 1.72 million in September, these numbers are provisional and are usually subject to significant revisions in the following month.
According to Business Standard, the proportion of women among the fresh EPF subscribers in September declined from 26.12% in August to 25.3% (226,392). On the other hand, the share of individuals in the 18-28 age group increased slightly from 67.93% in August to 68.8% in September. The newspaper reported that this age group is a crucial metric as these individuals are “usually first-timers in the labour market, thus reflecting its robustness”.
The labour ministry said in a statement that around 41.46% of the net membership addition in September came from expert services, including manpower suppliers, normal contractors, security services, and miscellaneous activities.
“A month-on-month comparison of industry-wise data displays significant growth in the members working in establishments engaged in the sugar industry, courier services, iron and steel, hospitals, travel agencies, etc,” it said.
The Centre for Monitoring Indian Economy (CMIE), however, reported positive trends in the labour markets for September. The unemployment rate dropped to a one-year low, decreasing from 8.10% in August to 7.09% in September. Notably, rural unemployment fell to 6.20% from 7.11% in August, while urban unemployment decreased from 10.09% to 8.94% during the same period.