Fresh formal hirings increase in July by 2.5% to 1.05 million: EPFO data

The formal labour market exhibited signs of recovery in July, with a 2.6% rise in new monthly subscribers under the Employees’ Provident Fund (EPF), reaching 1.05 million, compared to 1.02 million in June, as per the latest data from the Employees’ Provident Fund Organisation (EPFO). This data is crucial, as it represents the formal workforce, which enjoys social security benefits and is protected by labour laws. Of the 1.05 million new subscribers, 59.4% (625,000) were young individuals aged 18-25, an increase from 59.1% (606,000) in June, indicating a robust entry of first-time workers into the labour market. Additionally, female participation saw a positive trend, with women accounting for 29% (305,000) of new subscribers in July.

Net payroll additions, which include new subscribers, exits, and re-entrants, stood at 1.99 million in July. Nearly 40% of these additions came from expert services such as manpower suppliers, contractors, and security services. In comparison, Maharashtra reported the highest share of net additions at 20%. However, the net payroll data remains provisional and is often revised, making the new EPF subscriber figures a more reliable measure of labour market trends.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.