In October 2024, formal job growth in India experienced a significant slowdown, as reported by MoSPI reflecting from decline in EPF & ESIC data.
EPF and ESIC both saw declines in new registrations, raising concerns about the overall health of the formal job market.
EPF and ESIC Decline
The number of new subscribers to EPF scheme dropped to its lowest point at 0.75 million in October 2024. This marks a 23.2% decline from April 2024.
This decrease is part of a broader trend, with the number of new EPF subscribers falling by 41.3% from April to October 2024.
Similarly, new registrations under ESIC also saw a decline, with 1.29 million new subscribers in October, the lowest since April.
However, ESIC did record a slight increase of 5.3% in new registrations compared to the previous month.
A gender-wise analysis revealed that male subscribers faced higher declines in both EPF and ESIC compared to females.
The number of new male EPF subscribers decreased by 26.1% in October, while female subscriptions fell by 18.4%.
Similarly, male ESIC subscriptions declined by 15.4%, compared to a 10.3% decline for females.
This disparity highlights the uneven impact of the slowdown on different demographic groups.
In contrast to the declines in EPF and ESIC, the National Pension Scheme (NPS) saw a 12% increase in new registrations in October, with 64,977 new subscribers compared to 58,018 in September.
However, this increase was lower than the beginning of the financial year, indicating a broader trend of slowing formal job growth.
Economic Context and Government Initiatives
The slowdown in formal job growth comes amid broader economic challenges, including weaker industrial growth and a rise in unemployment rates.
Industrial production growth eased to 3.5% in October 2024, hampered by weaker performances in mining, power, and manufacturing sectors.
The unemployment rate also increased to 8.7% in October from 7.8% in September, reflecting the distress in the job market.
Various government initiatives aimed at supporting micro, small, and medium enterprises (MSMEs) during the pandemic have helped stabilize these businesses.
However, the formal job market continues to face challenges, with the need for more targeted interventions to boost job creation and support economic recovery.
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