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India Adds More Than 3 Million Formal Jobs In 6 Months

In what could be a massive boost to the government credentials, India added atleast 2.2 million formal jobs over the six months to February

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In what could be a massive boost to the government credentials, India added atleast 2.2 million formal jobs over the six months to February, according to payroll data released by the Employees’ Provident Fund Organisation (EPFO) and the National Pension System (NPS) for the first time, bolstering the government’s credentials on job creation. 

The Employees Provident Fund released provisional figures for six months that showed that 3.11 million workers joined the fund during the September 2017 to February 2018 period, as the economy picked up along with federal support.

India added 4,72,075 employees to the state-run social security fund in february, after adding 6,04,557 in January, new data on payrolls released on Wednesday (25th April) showed, giving a guide to how many new jobs are being created in the non-farm sector.

Soumya Kanti Ghosh, chief economist at the State Bank of India said, “The data shows there was a good increase in jobs every month in the last six months which will now help fill the missing link for policy-making.”

The data could help Prime Minister Narendra Modi to divert away the criticism he has been facing lately over his promise of 1 crore jobs annually before the 2014 election campaign. The new data overestimates job creation in the organised sector as many workers, who were working on contract with same companies, were added to the fund due the state incentives.

It is mandatory for employers and employees of companies with 20 or more workers to contribute to the EPF, though the government plans to amend the rules so that firms with 10 or more staff have to open an account with EPF for workers.

The Employees’ State Insurance Corp. (ESIC) also released payroll numbers on Wednesday, and the data shows new registrations at 520,000 over the six-month period. The net addition in the 18-25 age group is 830,000, which would take the total jobs generated in the six months to over 3 million based on these numbers. 


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jobs job growth government employment narendra modi