NEW DELHI: The second wave of Coivd-19 had a muted impact on the labour market in India as nearly 30.74 lakh payrolls were created in the April-June quarter, a report by State Bank of India (SBI) economists showed.
The report studied payroll data from Employees Provident Fund Organisation (EPFO) and New Pension Scheme (NPS) during the first quarter (Q1) of the financial year 2021-22 when the country was reeling under the severe second wave of the pandemic.
According to the report, quarter was good for those starting their job as there was a significant jump in the number of employees who joined their first jobs.
Of the total 30.74 lakh payrolls created in Q1, 16.3 lakh were first jobs or new payrolls, the report showed. Amongst these new payrolls, EPFO added 14.5 lakh while the rest were accounted for under the NPS.

Meanwhile, latest data by the EPFO indicates that of the overall 30.74 lakh new additions, the net new EPFO subscribers during the period were 28.9 lakh.

While, NPS data indicated an addition of 1.85 lakh new subscribers in Q1.

In addition, 11.8 lakh crore were second or existing payrolls and 2.6 lakh were formalised accounts. Second job payrolls include members who re-joined and re-subscribed to the EPF.

EPFO is the country’s principal organisation responsible for providing social security benefits to the organised, semi-organised sector workforce covered under the statute of EPF & MP Act, 1952.
It provides provident fund, pension benefits to the members on their retirement. Further, it also gives family pension and insurance benefits to their families in case of untimely death of the member.
SBI economists believe that if new payrolls increase at this rate then it may cross the 50 lakh-mark in FY22 as against 44 lakh in previous fiscal.
They expect labour market activity to improve further during the year as the pandemic wanes.
“We expect labour market activity to remain better in the current fiscal as companies will continue with their hiring plans to get ahead of the pandemic,” SBI chief economist Soumya Kanti Ghosh said.
In percentage terms, the rate of formalisation is now at 10 per cent, while the ratio of first jobs or new payrolls to total payroll was at 50 per cent, indicating every one out of two jobs was a new addition to payroll.
Further, the report said that three indicators of net EPF subscribers have witnessed a jump in Q1FY22, indicating that labour market disruptions were much lower.

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