Examining the report’s contents reveals that a sizable 27 million new hires were effectively assimilated into the workforce. Findings from an analysis of EPFO payroll data patterns over the previous four years show that 48.6 million net new members were added to the platform. These subscribers included people who fell into a variety of categories, such as those who were receiving their first paycheck, those who were joining or renewing their subscriptions, and those who were enrolling in official payroll systems.
The remarkable 21.7 million new hires for the first time made up a sizeable 47% of the total net new payroll growth. According to these illuminating statistics, formalization’s net enhancement impressively increased by 4.2 million from FY20 to FY23. Soumya Kanti Ghosh, group chief economist of SBI, is the author of this in-depth analysis that presents a positive outlook for the future. According to Ghosh, “The initial data from Q1 of the FY24 EPFO payroll shows an encouraging trend.”
A positive picture emerges from the first quarter of FY24 EPFO payroll statistics, with 4.4 million net new EPF members, 1.92 million of whom were making their first payroll. If this pattern holds, the net new payroll count would likely approach a record high of 16 million, with an astonishing 7-8 million people looking for work for the first time, according to Ghosh.
According to the NPS statistics, there were 824,000 more members added in FY23. State government payrolls made up 464,000 of these, followed by non-government payrolls with 230,000 and central payrolls with 129,000. A stunning 3.1 million additional members have joined the NPS in the last four years.
Overall, the official payroll increases from the EPFO and NPS for the years FY20 to FY23 reach an incredible 52 million. Women impressively made up a significant 27% of this increase in the workforce.
It is noteworthy that the data shows a decrease in the second payroll revision (rejoined/resubscribed) during the first quarter of the current financial year. This pattern suggests that more people could be choosing to stay in their existing jobs, which would reflect a feeling of security and pleasure.
Experts stress that the total employment figures may be far higher when statistics from the informal sector are included. In the post-COVID period, this development highlights the Indian economy’s ability to provide sizable formal employment possibilities and empower women in the workforce.