 "EPFO, PF, Provident fund, savings")
The number of new formal jobs created in a month has fallen to its lowest level in over two years since the second wave of the Covid-19 pandemic struck, indicating a significant downturn in the formal labour market.
In November 2023, the number of new monthly subscribers under the Employees' Provident Fund (EPF) decreased by nearly 10 per cent to 736,015 from 816,721 in October, according to the latest monthly payroll data released by the Employees’ Provident Fund Organisation (EPFO) on Saturday.
Previously in May 2021, 649,618 subscribers had joined the EPF. This data is pivotal as it is only the formal workforce that enjoys social security benefits and is protected by labour laws.
Of the total 736,015 new EPF subscribers in November, the proportion of young people in the 18-28 age bracket also reduced to 67.4 per cent (496,139) from 68.4 per cent in the previous month. This is critical as subscribers in this age group are typically entering the labour market for the first time, reflecting its robustness.
Moreover, the proportion of women among the total new subscribers slightly decreased to 26.35 per cent (194,007) during the month, compared to 26.4 per cent (204,308) in the previous month.
Meanwhile, the net payroll additions — calculated by considering the number of new subscribers, the number of subscribers that exited, and the return of old subscribers to the social security organisation — increased by 8.1 per cent to 1.39 million in November from 1.29 million in October. However, the net monthly payroll figures are provisional and are often revised significantly in the following month. Hence, the new EPF subscriber figure is deemed more reliable than the net additions.
“The payroll data indicates that approximately 1.06 million members exited but rejoined the EPFO. These members switched their jobs and re-joined establishments covered under the EPFO, opting to transfer their accumulations instead of applying for final settlement, thus extending their social security protection,” the labour ministry stated.
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According to the Centre for Monitoring Indian Economy (CMIE), which conducts its own Consumer Pyramids Household Survey (CPHS), the labour markets continued to struggle in November. Although the unemployment rate decreased during the month, it remained high at 9.16 per cent, down from 10.05 per cent in the previous month.
“This slight decline was mainly due to a decrease in unemployment in rural areas amid the rabi sowing season, while the urban unemployment rate increased to 9.39 per cent from 8.44 per cent,” CMIE reported.
The monthly payroll data released by the EPFO is part of the government's initiative to monitor formal-sector employment using payrolls. Since April 2018, the National Statistical Office (NSO) has been publishing employment-related statistics in the formal sector, sharing data from September 2017 onwards, using information on the number of subscribers under the EPF Scheme, Employees' State Insurance Scheme, and the National Pension System.
| Month | New EPF subscribers | Net Payroll |
| Jan-23 | 830047 | 1183402 |
| Feb-23 | 764106 | 1217782 |
| Mar-23 | 757792 | 1340183 |
| Apr-23 | 940489 | 1159481 |
| May-23 | 954462 | 1004595 |
| Jun-23 | 1069622 | 1222242 |
| Jul-23 | 1094845 | 1400001 |
| Aug-23 | 976924 | 1248148 |
| Sep-23 | 943905 | 1344715 |
| Oct-23 | 816721 | 1290473 |
| Nov-23 | 736015 | 1395049 |
Source: EPFO
