The State Bank of India (SBI) Ecowrap's recent report authored by Soumya Kanti Ghosh, the Group Chief Economic Advisor, has revealed key picture of India's employment landscape. The report delves into the observations drawn from India's payroll data, particularly focusing on data from the Employees' Provident Fund Organization (EPFO) and the National Pension System (NPS).

As per the report, the EPFO and NPS data show that India created 5.2 crore payrolls in last 4 years, where 47 percent are first jobs.

Here are the key takeaways from the report:

Rapid growth in payrolls

Over the past four years, the net new EPF subscriber additions during FY20 to FY23 reached to 4.86 crore. This number includes first payroll jobs, rejoining and resubscribed members, and formalized payrolls. Upon careful analysis, the report found that the actual net new payroll, accounting for fresh jobs, was a substantial 2.27 crore during this period. Remarkably, first jobs accounted for a significant 47 percent of this total.

Government payrolls and formalisation

During the same four-year period, NPS data indicated the addition of 31 lakh new subscribers, with state government payrolls leading the way at 4.64 lakh. This points to a diversified growth in employment across different sectors. Additionally, the report highlighted a positive trend in formalisation, with an increase of 42 lakh formalised payrolls during these years.

Encouraging FY24 trends

The report also looks ahead to FY24, with the Q1 EPFO payroll data showing promising signs. 44 lakh net new EPF subscribers joined, of which 19.2 lakh were first payroll jobs. If this trajectory continues, FY24 could witness a historic high of more than 160 lakh new payrolls, with first payroll jobs reaching 70-80 lakh, painting a brighter picture for India's employment market, the report said.

Empowering women in the workforce

One striking feature in the current EPFO data is a substantial decline in the revision of members rejoining or re-subscribing in the first quarter of the current fiscal year. This suggests that more individuals are choosing to stick with their current employment, reflecting a sense of stability. Furthermore, the report highlights that the share of women in payrolls currently stands at 27 percent. To promote greater gender inclusivity in the labor force, the report recommends reserving 30 percent of banking correspondent jobs for women.

It suggests considering Bank Sakhis, hired under the National Rural Livelihood Mission (NRLM), as banking correspondents due to their familiarity with routine bank operations.

First Published:Sept 12, 2023 1:38 PM IST