In a remarkable boost to Bharat’s economy and employment sector, the country has seen the addition of nearly 5.2 crore new formal jobs during the period spanning from the financial year 2020 to 2023. This encouraging development comes from a recent research report by the State Bank of India (SBI), shedding light on the nation’s path to recovery and growth.
The report draws its conclusions from an in-depth analysis of data sources including the Employee Provident Fund Organisation (EPFO), National Pension Scheme (NPS), and Employees State Insurance Corporation (ESIC). According to the report, an impressive 2.7 crore new employees joined the formal jobs workforce during this same period, painting a picture of economic resurgence.
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India's economy added 5.2 crore formal sector jobs
EPFO payroll data trends from the past four years reveal that a significant 4.86 crore net new subscribers made their way onto the portal. These subscribers can be categorized into first payroll entrants, accounting for 47% of the total net new payroll, and second payroll participants, totaling 2.17 crore. This indicates that the net increase in formalization stood at an impressive 42 lakh during the period of FY20-FY23, as per the report authored by SBI’s Group Chief Economic Advisor, Soumya Kanti Ghosh, who expressed optimism by saying, “If we see the Q1 EPFO payroll data for FY24, the trend is quite encouraging.”
Indeed, the first quarter of the EPFO payroll data for FY24 does show promising figures, with 44 lakh net new EPF subscribers, out of which 19.2 lakh belonged to the first payroll category. If this trend persists, the net new payroll for the fiscal year is projected to surpass the 160-lakh mark, reaching a historic high. Ghosh further highlighted that the first payroll is expected to remain within the 70-80 lakh range, indicating robust employment growth.
Switching our focus to the National Pension Scheme (NPS) data, it reveals that FY23 welcomed 8.24 lakh new subscribers. Among these, state government payrolls accounted for 4.64 lakh subscribers, non-government payrolls added 2.30 lakh, and central payrolls saw an increase of 1.29 lakh. Over the past four years, an impressive 31 lakh new subscribers have joined the NPS, reflecting sustained growth in this sector.
Combining the figures from EPFO and NPS, the total payroll generation from FY20 to FY23 exceeds 5.2 crore, a significant milestone in Bharat’s employment landscape. Notably, women’s participation in this formal job creation accounted for approximately 27%, underscoring progress toward gender equality in the workforce.
Furthermore, the report reveals a decline in the revision of the second payroll (rejoined/resubscribed) during the first quarter of the current financial year. This suggests that more individuals are choosing to stay with their current employers, a sign of job stability and satisfaction.
Experts point out that when considering data from the informal sector, the actual numbers of new jobs created could be substantially higher. This development is a clear indicator of the Bhartiya economy’s resurgence in the post-COVID era, instilling hope and optimism for the nation’s future.
Bharat’s remarkable achievement of adding 5.2 crore new formal jobs between FY20 and FY23 is a testament to the nation’s resilience and determination to bounce back from the challenges posed by the COVID-19 pandemic. The growth in formal employment, particularly the rise in first payroll jobs and increased participation of women, underscores the positive direction in which Bharat’s economy is headed. With the potential for even greater numbers when considering the informal sector, Bharat is well on its way to a robust and inclusive economic recovery.
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