Latest EPFO data shows the dismal state of job creation
The state of employment in India continues to be dismal. According to the latest payroll data released by the Employees’ Provident Fund Organisation (EPFO) on Thursday, October 20, fresh formal jobs created in August fell below the one-million mark for the first time in five months. The figure declined by 11.9 per cent over the July level.
Corroborating with this is the employment data released by the Centre for Monitoring Indian Economy (CMIE), a private organisation which conducts its own survey, which is highly regarded. It said the unemployment rate in August shot up to 8.3 per cent, which was the highest when compared with the rates in the 12 months till August.
“This rise in the unemployment rate reflects the inability of the economy to provide adequate jobs at a time when the demand for jobs from people increased,” a CMIE statement said.
Though net payroll additions in August were up by 2.5 per cent compared to July, as per EPFO, new EPF subscribers added in the 18-25 age group—a crucial data as first-timers in the labour market reflect the robustness of the job market—went down by 10.5 per cent, compared to July.
Another figure released by CMIE was that for salaried jobs, which fell 4.6 million to 76.2 million in August, which is the lowest seen in the 15 months till August.
And as per the latest October data from CMIE, the unemployment scenario has worsened, despite robust festive sales and increasing domestic demand. An October 21 report in The New Indian Express showed the unemployment rate in October has shot up to 7.86 per cent, from 6.43 per cent in September. Rural unemployment shot up from 5.84 per cent in September to 8.01 per cent. Urban unemployment too remained high at 7.53 per cent.
