Nearly 500,000 joined formal workforce in June: EPFO1 min read . Updated: 21 Aug 2020, 06:20 AM IST
June’s fresh payroll additions are still far below the FY20 average monthly numbers of around 1 million
NEW DELHI : At least 498,262 people joined India’s formal workforce in June, recording a growth for the second consecutive month, according to the payroll data of the Employees’ Provident Fund Organization (EPFO) released on Thursday.
Of the new subscribers, EPFO said almost 50% were in the 18-25 age group. While April saw nearly 177,500 fresh subscribers, in May the number crept up to 303,388. In contrast, the June payroll data showed strong revival to touch the half a million mark in fresh subscribers.
To be sure, June’s fresh payroll additions are still far below the FY20 average monthly numbers of around 1 million. The lockdown and the ensuing business losses due to the covid-19 crisis have hit the employment market significantly.
The new payroll additions are powered by the so-called “experts services" which predominantly consist of manpower agencies, private security firms and contractors.
The EPFO said while fresh hires were at 498,262, June saw around 297,000 people exiting the social security body. But the good part is some 453,985 people who had earlier exited have rejoined to subscribe to EPFO.
If you put all of them together, EPFO saw a “net payroll addition" of 655,311 in June, from 172,174 in May. “June has seen speedy recovery with the addition of 655,000 net subscribers registering a remarkable 280% month-on-month growth. The data published comprises all the new members who have joined during the month and contribution is received," the EPFO added.
Category-wise analysis of industry shows “expert services" category had a share of 46% and 45% in FY19 and FY20 respectively. In Q1FY21, it stood at 52.7%, which indicates that many industries are yet to recover.
“The absolute figure for net enrolment in Expert Services category during June 2020 is 345,000, which is more than the monthly average of 300,000 during 2019-20. Expert services predominantly consist of man power agencies, private security agencies and small contractors," EPFO said.