Formal Job Creation Surged to 1.5 Million in December 2021, Shows Data

According to official data, almost 15.26 lakh new members joined the Employees’ State Insurance Corporation (ESIC) – run social security plan in December 2021, compared to 10.39 lakh the previous month, providing insight into formal sector employment in the country. The NSO report is based on payroll data from new subscribers to ESIC, the Employees’ Provident Fund Organisation (EPFO), and the Pension Fund Regulatory and Development Authority’s various social security schemes (PFRDA). The study also presents differing perspectives on the levels of employment in the formal sector, according to the NSO, and does not measure employment holistically.

According to the NSO data, gross enrolments of new ESIC subscribers were 11.5 million in 2020-21, up from 15.1 million in 2019-20 and 14.9 million in 2018-19. After governments eased COVID-induced limitations following the second wave of the epidemic, which reached the country in mid-April last year, gross new enrolments increased in June (1.107 million), July (1.32 million), and August (1.35 million). Net new enrolments in the EPFO retirement fund increased to 1.46 million in December 2021 from 1.21 million in November 2021. Roughly 49.8 million (gross) new subscribers joined the Employees’ Provident Fund system between September 2017 and December 2021.