[India] One payroll in every two was new in Q1

According to a report by State Bank of India (SBI), economists have found that the second wave of COVID-19 had a muted impact on the labour market in India as nearly 3,074,000 payrolls were created in the April-June quarter, The Times of India reports.

The report studied payroll data from the Employees Provident Fund Organisation (EPFO) and the New Pension Scheme (NPS) during the first quarter (Q1) of the financial year 2021-22 when India was struggling under the devastating second wave of the pandemic.

According to the report, the quarter was particularly good for those just embarking on their working lives as there was a significant jump in the number of employees securing first jobs.

Of the total 3,074,000 payrolls created in Q1, 1,630,000 were first jobs or new payrolls, the report showed. Among the new payrolls, EPFO added 1,450,000 while the rest were accounted for under the NPS.

Additionally, the latest data from the EPFO indicates that of the overall 3 million+ new additions, the net new EPFO subscribers during the period were 2,890.000.

NPS data indicated the addition of 185,000 new subscribers in Q1.

1,180,000 were second or existing payrolls and 260,000 were formalised accounts. Second job payrolls reportedly include members who re-joined and re-subscribed to the EPF.

EPFO is India's principal organisation responsible for providing social security benefits to the organised, semi-organised sector workforce covered under the statute of EPF & MP Act, 1952.

It provides provident fund pension benefits to its members on their retirement and also provides family pension and insurance benefits to families in the case of an untimely death.

SBI economists believe that if new payrolls continue to increase at the current rate, they may cross the 5 million mark in FY22. As compared to 4.4 million in the previous fiscal year.

They expect labour market activity to improve further during the year as the pandemic wanes.

“We expect labour market activity to remain better in the current fiscal as companies will continue with their hiring plans to get ahead of the pandemic,” SBI chief economist Soumya Kanti Ghosh said.

In percentage terms, the rate of formalisation now stands at 10 per cent, while the ratio of first jobs or new payrolls to total payroll was at 50 per cent; indicating every one out of two jobs was a new addition to payroll.

The report also said that three indicators of net EPF subscribers have witnessed a jump in Q1FY22, suggesting that labour market disruptions were much lower.

Source: The Times of India

According to a report by State Bank of India (SBI), economists have found that the second wave of COVID-19 had a muted impact on the labour market in India as nearly 3,074,000 payrolls were created in the April-June quarter, The Times of India reports.

The report studied payroll data from the Employees Provident Fund Organisation (EPFO) and the New Pension Scheme (NPS) during the first quarter (Q1) of the financial year 2021-22 when India was struggling under the devastating second wave of the pandemic.

According to the report, the quarter was particularly good for those just embarking on their working lives as there was a significant jump in the number of employees securing first jobs.

Of the total 3,074,000 payrolls created in Q1, 1,630,000 were first jobs or new payrolls, the report showed. Among the new payrolls, EPFO added 1,450,000 while the rest were accounted for under the NPS.

Additionally, the latest data from the EPFO indicates that of the overall 3 million+ new additions, the net new EPFO subscribers during the period were 2,890.000.

NPS data indicated the addition of 185,000 new subscribers in Q1.

1,180,000 were second or existing payrolls and 260,000 were formalised accounts. Second job payrolls reportedly include members who re-joined and re-subscribed to the EPF.

EPFO is India's principal organisation responsible for providing social security benefits to the organised, semi-organised sector workforce covered under the statute of EPF & MP Act, 1952.

It provides provident fund pension benefits to its members on their retirement and also provides family pension and insurance benefits to families in the case of an untimely death.

SBI economists believe that if new payrolls continue to increase at the current rate, they may cross the 5 million mark in FY22. As compared to 4.4 million in the previous fiscal year.

They expect labour market activity to improve further during the year as the pandemic wanes.

“We expect labour market activity to remain better in the current fiscal as companies will continue with their hiring plans to get ahead of the pandemic,” SBI chief economist Soumya Kanti Ghosh said.

In percentage terms, the rate of formalisation now stands at 10 per cent, while the ratio of first jobs or new payrolls to total payroll was at 50 per cent; indicating every one out of two jobs was a new addition to payroll.

The report also said that three indicators of net EPF subscribers have witnessed a jump in Q1FY22, suggesting that labour market disruptions were much lower.

Source: The Times of India