A slowdown reported by MoSPI in creation of New Formal Jobs

The Ministry of Statistics and Programme Implementation (MoSPI) reported a slowdown in the creation of new formal jobs in April 2024.

According to MoSPI this downturn is more pronounced in low-paying job sectors compared to better-paying jobs. The Employees’ State Insurance Corporation (ESIC) saw new additions fall to 1.2 million in April, down from the 1.4 million monthly average of the previous year. For the Employees’ Provident Fund (EPF) Scheme, the net addition of jobs in April was 887,438, slightly below the monthly average of 916,093 jobs in FY24. This overall job addition was 72% higher due to a combination of lower exits (448,212) and higher re-subscribers (1.4 million). Specifically, re-subscribers increased by 1.6%, while exits decreased by 62%.

New additions to the NPS were 41.7% higher at 110,665 compared to the FY24 monthly average. This increase was driven by state government enrolments, which rose by 72%, and central government enrolments, which increased by 11.7%. The lack of job creation has been a critical issue in the political landscape, especially in the run-up to the general elections. The ruling Bhartiya Janata Party fell short of the majority mark (272 seats) in the polls. In response to these employment concerns, industry bodies have called for Employee Linked Incentive schemes to boost formal job creation during pre-budget consultations with the finance minister.