A study based on payroll data of retirement fund body EPFO, PFRDA and Employees' State Insurance Corporation (ESIC) suggests that 18 million jobs were generated by the country’s formal sector in a 15-month period starting September 2017 and ending November 2018.
1,84,38,748 new members joined the ESI scheme run by ESIC during the 15 months until November 2018, showed the Central Statistics Office (CSO) study based on payroll data of different social security schemes.
The study also highlighted that 1,39,31,607 members exited the EPFO schemes during the 15-month period and 33,48,093 members rejoined the subscription again during the period. If we were to compare, the numbers of members joining EPFO in this year November with last year, the percentage of addition of members is low. As many as 10,31,484 new members joined the ESI scheme in November 2018, which was 12.88 percent lower than 11,84,042 new subscribers in the same month in 2017.
In October 2018, employment generation in the formal sector nearly trebled to 8.27 lakh.
Last year the job creation remained highest in September 2018 during the 14-month period till October 2018, while March emerged as the dullest month in this 14 month period with the lowest number of 1.59 lakh subscribers being added to the EPFO scheme for that month which was also revised downward from 2.36 lakh estimate released last month.
While the data from EPFO and CSO points towards an increasing employment rate in the formal sector, the reality still remains vague. As a majority of the working professionals still complain about the lack of jobs in the country, these few additions every month do not depict a clear picture of jobs being created in the country. There till remains a huge gap in terms of jobs demand and supply and how will India Inc be able to overcome this is still unknown.