India records growth in good quality formal sector jobs

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India records growth in good quality formal sector jobs

New Delhi, November 26 (IANS). India’s employment in the formal sector has grown rapidly during the first half of the current financial year. The formal sector, which provides better quality jobs, has seen new entries into three social security schemes compared to the same period last year.

New registrations in the Employee Provident Fund Scheme for larger organizations and better-paid employees increased by 2.3 per cent to 6.1 million in the first half (April-September) of FY25 compared to the same period last year.

New registrations by small organizations in the Employees’ State Insurance Corporation increased by 5.2 per cent to 9.3 million during the first half of the current financial year.

Similarly, subscriptions to the National Pension System also remained higher by 6.8 per cent, reflecting the increasing number of workers finding better jobs.

This improvement in the quality of jobs has also been seen in the Finance Ministry’s latest monthly review of the economy.

The Finance Ministry report said, “With the increasing number of youth in the organized sector and the increase in manufacturing jobs, the formal workforce is expanding in terms of employment.”

According to the report, “Employees’ Provident Fund Organization (EPFO) added 9.5 lakh new members in September 2024.”

Of the new members added in September 2024, 59.9 per cent were in the 18-25 age group, indicating that the majority of individuals joining the organized workforce are young.

The Purchasing Managers’ Employment sub-index remained strong, expanding for the eighth consecutive month in October.

The report said that employment in the manufacturing sector slowed down in September, but it picked up pace in October with the sub-index improving.

Service sector employment expanded rapidly and the employment sub-index was at its highest level in the last 26 months.

The report said that there are signs of expansion in hiring activity regarding white-collar jobs of Naukri Jobspeak Index. In October this year, this index had reached 2,733 points with an increase of 10 percent on an annual basis.

–IANS

SKT/ABM

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