Reversing a month-on-month fall in May, the net employment generation in the formal sector grew 42.8% in June over the previous month, according to the latest payroll data of the Employees’ Provident Fund Organisation (EPFO). However, the Employees’ State Insurance Corporation (ESIC) reported a 5.3% decline in net addition in June, compared with the previous month.
The EPFO showed a net addition of 12,23,675 employees in June this year, compared with 8,56,870 in May. The ESIC reported a net addition of 12,19,501, against 12,88,140 in the previous month. The estimates of the EPFO and the ESIC are not additive, as there are elements of overlap. These data give different perspectives on the levels of employment in the formal sector and do not measure employment at a holistic level, according to government officials.
As per the EPFO data, the highest percentage rise was in the age brackets of above 26 years with month-on-month increase of 54%, while the rise was lower at 35% for those below 26 years of age.
Additions in younger-age brackets are largely associated with new jobs while those in older age bracket reflects change of jobs or formalisation of employment by companies.
The retirement fund, EPFO, has more than 6 crore active members (with at least one month contribution during the year) while medical care provider ESIC has about three crore members.