Indian economy witnesses 5.2 crores new employments between FY20 and FY23: Report

According to a recent analysis by SBI Research, the Indian economy added over 5.2 crore new formal positions during the financial years 2020 and 2023, with a net increase of 2.7 crore jobs during this time. This report’s conclusions are based on a thorough examination of data from the Employees Provident Fund Organisation (EPFO), National Pension Scheme (NPS), and Employees State Insurance Corporation (ESIC).

In accordance with the suggestions made by the Ghosh & Ghosh report, the government has started disclosing monthly payroll information from the Employees Provident Fund Organisation (EPFO), the National Pension Scheme (NPS), and the Employees State Insurance Corporation (ESIC).

First jobs made up 47% of the total net new payroll addition, and second jobs (exiting members who returned and renewed their subscriptions) accounted for Rs 2.17 crore over the course of these four years. In these years, the net rise in formalisation was 42 lakh, according to the report written by Soumyakanti Ghosh, group principal economic advisor to the SBI.

EPFO data

If the Q1 EPFO payroll figures for FY24 were analysed, the trend would be promising because there were a net addition of Rs 44 lakh EPF users, with a 19.2 lakh first payroll.

If the pattern holds for the remainder of FY24, the net new payroll will surpass 160 lakh, the highest level ever, with the first payroll being in the 70–80 lakh area.

NPS data

According to NPS data, there were 8.24 lakh new subscribers in FY23, of which 4.64 lakh worked for state governments, 2.30 lakh for non-government organisations, and 1.29 for the federal government.

Over the previous four years, the NPS has added almost 31 lakh additional users. According to Ghosh, this indicates that the EPFO and NPS collectively generated more over 5.2 crore in payroll between FY20 and FY23.

The report also highlights a sharp fall in the number of members who re-joined or renewed their subscriptions during the first quarter of the current fiscal year. This could indicate that more people are choosing to remain in their existing jobs.

Women’s contribution

The report also mentions that women make up about 27% of the payroll, highlighting the need for action to increase female participation in the labour sector.

“To enable the increase of women in the labour force, we recommend that Bank Sakhis hired under the National Rural Livelihood Mission (NRLM) may be considered for appointing as Banking Correspondents, as they are well-versed with routine bank operations and possess mandated IIBF certification. Policy may also be framed to mandatorily recruit at least 30% of the total workforce as women Banking Correspondents, particularly in locations where access and usage of accounts by women is low.” The SBI report remarked.

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