According to a report, between FY20 and FY23, the economy added nearly 5.2 crore new formal jobs
According to a report based on a review of the EPFO, NPS, and ESIC statistics, the economy generated over 5.2 crore new formal jobs between FY20 and FY23, with a net addition of 2.7 crore.
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Based on the suggestions made by the Ghosh & Ghosh study, the government has been providing monthly payroll data from the Employees Provident Fund Organisation, the National Pension Scheme, or NPS or EPFO, and the Employees State Insurance Corporation, or ESIC, since April 2018.
The net new EPF subscriber acquisition for FY20–23 was 4.86 crore, according to the EPFO payroll data trends for the previous four years. This number includes new payrolls (first payroll), second payrolls (rejoined/resubscribed members), and formalised payrolls.
In light of this, the net new payroll (first job/fresh job) adjusted for re-joined/re-subscribed members and formalization (based on ECR data) reveals that the actual net new payroll during FY20-23 was 2.27 crore, according to research released by SBI Research on Tuesday.
First employment made up 47% of the total net new payroll increase, while second jobs, which included former members who rejoined and renewed their subscriptions, totaled 2.17 crore over the course of the four years. In these years, the net rise in formalisation was 42 lakh, according to the report written by Soumyakanti Ghosh, group principal economic advisor to the SBI.
If the Q1 EPFO payroll figures for FY24 were analyzed, the trend is positive because 44 lakh net new EPF members joined, with a 19.2 lakh initial payroll. If the pattern holds for the remainder of FY24, the net new payroll will surpass 160 lakh, the highest level ever, with the first payroll being in the 70–80 lakh range.
According to NPS data, there were 8.24 lakh new subscribers in FY23, of which 4.64 lakh worked for state governments, 2.30 lakh for nonprofit groups, and 1.29 for the central government.
Over the previous four years, the NPS has added almost 31 lakh additional users. According to Ghosh, this indicates that the EPFO and NPS collectively generated more over 5.2 crore in payroll between FY20 and FY23.
The report also highlights a sharp fall in the number of members who re-joined or renewed their subscriptions during the first quarter of the current fiscal year. This could indicate that more people are choosing to remain in their existing jobs.
Additionally, women made up around 27% of the payroll.
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