New job creation slumps 11.6% in January, reveals EPFO data

As per the latest payroll data released by the retirement fund body Employees Provident Fund Organisation (EPFO), 15.29 lakh subscribers were added in January 2022, a 21.4% increase compared to the previous month. 

8.64 lakh people joined formal work for the first time in January, an 11.6% month-over-month decrease from December. The number of new job additions in January is at a 3-month low and reflects how the third wave of the coronavirus pandemic had softened the pace of job creation.

15.29 lakh net payroll additions were reported in January, in comparison to 12.60 lakh net additions clocked in December. The Jan’22 figures demonstrate a month-on-month growth of 21.4% over Dec’21. The net payroll additions factor new subscribers, ones who exited EPFO, and ones who exited but rejoined it by opting to continue their membership by transferring their PF accumulations from previous to present PF account instead of opting for final withdrawal. In Jan’22, 6.65 lakh subscribers fell in the latter bracket.

The age group of 22-25 years has registered the highest number of net enrolments with 4.03 lakh additions during Jan’22 while 2.86 lakh net enrolments came from the 18-21 years age group. The age groups of 18-25 years have contributed around 45.1% of total net subscriber additions in Jan’22. “Members of 18-25 years age groups are usually fresh hands in the job market and signify a crucial stage for an individual’s potential in terms of earning capacity,” the ministry said in its statement.

The highest number of formal jobs were created in the five states of Maharashtra, Haryana, Gujarat, Tamil Nadu, and Karnataka which together added approximately 9.33 lakh subscribers which equates to 61% of the total net payroll addition in Jan’22.

Industries classified under the ‘expert services’ category (consisting of manpower agencies, private security agencies, small contractors, etc.) constituted 40% of total subscriber addition in Jan’22. The ministry also observed a growing trend in net payroll additions in industries such as Expert Services, Engineering Contractors, Trading (Commercial Establishments), and Building & Construction.

Of the 15.29 lakh net enrolments in Jan'22, 20.9% (3.2 lakh) were females, in comparison to 20.8% (2.6 lakh) in Dec'21. The share of females in net enrolments has remained stagnant at 21% since 2018-19.

Reference Reading

EPFO is the country’s principal organization responsible for providing social security benefits to the organized/semi-organized sector workforce covered under the statute of EPF & MP Act, 1952. It provides provident fund, pension benefits to the members on their retirement, and family pension and insurance benefits to their families in case of the untimely death of the member.

The payroll data is provisional since the data generation is a continuous exercise, as updating employee records is a continuous process. The previous data hence gets updated every month.