Along with the decline in unemployment rate, the formality of employment has also increased. The report said there is evidence of an increase in net payroll additions under the Employees' Provident Fund Organization (EPFO), with more members exiting the social security net and rejoining.
Creation of digital identities like Aadhaar, registration of unorganized workers on e-Shram portal and registration of MSMEs on Udyam portal have played an important role in promoting formalization of the economy. As of May 22, 2024, 4.4 crore MSMEs have been registered on the Udyam Porta (including informal enterprises registered on the Udyam Sahayata platform), of which more than 97 per cent are micro enterprises.
EPFO's net payroll addition during FY24 stood at 1.47 crore members, which is a year-on-year growth of 6.3 per cent from 1.39 crore members in the corresponding period last year.Nearly 1.08 crore new customers were enrolled in FY24, of which 56.7 per cent of the newly added customers were in the age group of 18-25 years, indicating healthy recruitment for the youth. The relatively high number of members rejoining the EPF indicates that the labor market is choosing to increase its social security protection.
Over the past few months, the number of subscribers rejoining EPFO has been higher than the number of new subscribers or existing subscribers removed. During FY24, 1.64 crore members rejoined after earlier exiting.
According to EPFO, these members changed their jobs and joined establishments under EPFO and opted to transfer their accumulation instead of applying for final settlement, thus increasing their social security cover.The number of deletions of names of existing EPFO subscribers has also been less in FY 2014 as compared to the previous year. The report said that 1.25 crore EPFO subscribers moved out during FY 2024, while the number was 1.34 crore last year.
It also said that growth in employment generation is also evident across the broader manufacturing and service sectors. The PMI Manufacturing Employment sub-index suggests the creation of more job opportunities in the manufacturing sector supported by improving operating conditions, encouraging demand, a pick-up in new business and increased output. Similarly, the PMI services sub-index shows an increase in job creation in the services sector due to a combination of increased domestic demand, new trade gains and increased international sales.
Creation of digital identities like Aadhaar, registration of unorganized workers on e-Shram portal and registration of MSMEs on Udyam portal have played an important role in promoting formalization of the economy. As of May 22, 2024, 4.4 crore MSMEs have been registered on the Udyam Porta (including informal enterprises registered on the Udyam Sahayata platform), of which more than 97 per cent are micro enterprises.
EPFO's net payroll addition during FY24 stood at 1.47 crore members, which is a year-on-year growth of 6.3 per cent from 1.39 crore members in the corresponding period last year.Nearly 1.08 crore new customers were enrolled in FY24, of which 56.7 per cent of the newly added customers were in the age group of 18-25 years, indicating healthy recruitment for the youth. The relatively high number of members rejoining the EPF indicates that the labor market is choosing to increase its social security protection.
Over the past few months, the number of subscribers rejoining EPFO has been higher than the number of new subscribers or existing subscribers removed. During FY24, 1.64 crore members rejoined after earlier exiting.
According to EPFO, these members changed their jobs and joined establishments under EPFO and opted to transfer their accumulation instead of applying for final settlement, thus increasing their social security cover.The number of deletions of names of existing EPFO subscribers has also been less in FY 2014 as compared to the previous year. The report said that 1.25 crore EPFO subscribers moved out during FY 2024, while the number was 1.34 crore last year.
It also said that growth in employment generation is also evident across the broader manufacturing and service sectors. The PMI Manufacturing Employment sub-index suggests the creation of more job opportunities in the manufacturing sector supported by improving operating conditions, encouraging demand, a pick-up in new business and increased output. Similarly, the PMI services sub-index shows an increase in job creation in the services sector due to a combination of increased domestic demand, new trade gains and increased international sales.
