BackAt least 498,262 people joined formal workforce in June, EPFO payroll data
Of the new subscribers, EPFO said almost 50% are in the 18-25 age group, considered as a fresh in the labour market. As per payroll data, while April saw nearly 177,500 fresh subscribers, in May the number crept up to 303,388
PremiumAt least 498,262 people joined the formal workforce in the month of June, recording a growth of second consecutive month, the payroll data of the employees provident fund organization (EPFO) revealed Thursday.
Of the new subscribers, EPFO said almost 50% are in the 18-25 age group, considered as a fresh in the labour market. As per payroll data, while April saw nearly 177,500 fresh subscribers, in May the number crept up to 303,388. In contrast June payroll data showed a strong revival to touch nearly half a million number of fresh subscribers.
To be sure, the June fresh payroll additions are still far below the previous fiscals’ average monthly numbers. In the last fiscal, the new subscribers were getting added by almost a million every month. The national lockdown and the ensuing business loss due to the ongoing pandemic has hit the employment market significantly.
The new payroll additions are powered by the so called “experts services" which predominantly consist of man power agencies, private security agencies and small contractors.
The EPFO said while fresh additions in June was 498, 262, the month saw almost 297,000 people exiting the social security body and stopped paying subscription. But the good part is some 453,985 people who had earlier exited rejoined and re-subscribed.
If you put all them together in perspective, EPFO observed a “net payroll additions" of 655,311 in the month of June. This was 172,174 in May and 20,164.
“The month of June has seen speedy recovery with addition of 6.55 lakh net subscribers registering a remarkable 280% month on month growth. The data published comprises of all the new members who have joined during the month and whose contribution is received," retirement fund body said.
Category wise analysis of industry indicates “Expert services" category had a share of approximately 46% and 45% during 2018-19 and 2019-20 respectively. In the first quarter of 2020-21 it stands at 52.7%, which is reflecting that many industries are yet to recover but expert services has made good progress.
“The absolute figure for net enrolment in Expert Services category during June 2020 is 3.45 lakh, which is more than the monthly average of 3 lakh during 2019-20. Expert services predominantly consist of man power agencies, private security agencies and small contractors," EPFO said.
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