India created 30.74 lakh payroll in Q1FY22, of which 16.3 lakhs were first jobs / new payroll (EPFO & NPS), 11.8 lakh crores were second jobs /existing payroll and 2.6 lakhs were formalized accounts. Cumulatively, total new payroll / first job generation of EPFO and NPS was almost 16.3 lakh in Q1FY22. If the new payrolls increase at this rate then the new payroll may cross 50 lakh mark in FY22 as against 44 lakhs in FY21, said Dr. Soumya Kanti Ghosh, Group Chief Economic Adviser, State Bank of India.
State Bank of India’s Economic Research Department said, "The good thing is that three indicators of net EPF subscribers have witnessed a jump in Q1FY22 indicating that labor market disruptions were much lower during 2nd wave. The rate of formalization is now at 10 percent, while the ratio of first jobs / new payrolls to total payroll was at 50 percent, indicating every one out of two jobs was a new addition to payroll. This is also an improvement from 47 percent in FY21.
"We expect labor market activity to remain better in current fiscal as companies will continue with their hiring plans to get ahead of the pandemic.
India created 30.74 lakh payroll in Q1FY22, of which 16.3 lakhs were first jobs / new payroll (EPFO & NPS), 11.8 lakh crores were second jobs /existing payroll and 2.6 lakhs were formalized accounts. Cumulatively, total new payroll / first job generation of EPFO and NPS was almost 16.3 lakh in Q1FY22.
"If the new payrolls increase at this rate then the new payroll may cross 50 lakh mark in FY22 as against 44 lakhs in FY21. The good thing is that 3 indicators of net EPF subscribers have witnessed a jump in Q1FY22 indicating that labor market disruptions were much lower during 2nd wave.
"The rate of formalization is now at 10 percent, while the ratio of first jobs / new payrolls to total payroll was at 50 percent, indicating every one out of two jobs was a new addition to payroll. This is also an improvement from 47 percent in FY21. We expect labor market activity to remain better in current fiscal as companies will continue with their hiring plans to get ahead of the pandemic."
