Service sector

India’s services sector PMI improves in August 2022

The gender gap in the Indian workforce has always been noticeable. Working women in our country have been trying to fill this void from the beginning, but they continue to lag behind in terms of the number of permanent employees in the country.

However, an improvement in the image was observed.

The Employees Provident Fund Organization (EPFO) recently released data which reveals that there has been an increase in the payroll of women in the country. According to these data, the number of additions made to the salaried workforce as part of the provisional payroll of companies in the country, has led to an improvement in the picture.

This implies that there has been a significant increase in the number of women active in the organized sector workforce.

For those who are not familiar, the EPFO ​​is one of the two main statutory social security bodies under the Department of Labor and Employment, and it is responsible for the regulation and management of provident funds in India, with public employee insurance.

India’s labor force is growing

Provisional figures from EPFO ​​payroll statistics reveal that Indian organizations added 18.36 lakh new employees to India Inc. in just one month i.e. June 2022. While in May 2022, the addition of employees was much lower.

If we take the percentage into consideration, compared to the previous month i.e. May 2022, the net addition of members for June 2022 increased by 9.21%.

According to the year-on-year comparative payroll statistics, the net addition of members in June 2022 increased by 5.53 lakhs compared to the same period in 2021.

Female participation soars

EPFO has seen a huge increase in the female workforce.

An analysis of registrations by gender reveals that there are now 4.06 lakh net female members, up from 3.43 lakh the previous month, an increase of 18.37%.

In addition, the participation of female workers in the organized sector has increased significantly over the past 12 months. As a result, the percentage share of net addition of female members increased from 20.37% in May 2022 to 22.09% in June 2022.

Inside article2-EPFO adds 4.6 lakh female members with 18.43% increase in June

About 10.54 lakh of the 18.36 lakh new members registered this month were the first to be covered under the EPF & MP Act, 1952.

Since April 2022, there has been an upward trend of new members joining the workforce. A total of 7.82 lakh net members changed jobs in EPFO ​​administered workplaces, joined EPFO ​​and opted to transfer funds from their previous PF accounts to their current accounts rather than applying for a final withdrawal of the PF.

The number of new students enrolled this month was higher than the monthly average for the previous fiscal year. The 22-25 age group saw the highest number of net enrollments, with 4.72 lakh additions in June 2022, according to a comparison of payroll data by age. This demonstrates that a significant percentage of first-time job seekers enter the labor market in the organized sector.

Institutions covered in the states of Maharashtra, Karnataka, Tamil Nadu, Haryana, Gujarat and Delhi continue to lead by adding around 12.61 lakh net members during the month of June, i.e. 68 .66% of total payroll net addition. across all age brackets, based on a comparison of payroll figures by state.

According to the sectoral classification of payroll data, “expert services” (which includes labor agencies, private security companies, small contractors, etc.) and “commercial and commercial establishments accounted for the majority of the month’s total member addition at 47.63. percent each. If we compare the industry-specific data with that of the previous month, higher registrations were observed in the industries of “schools”, “clothing manufacturing”, “expert services” and “textiles “, among others.

Payroll data is provisional since the generation of this data is an ongoing exercise, updating employee records is also an ongoing process. Therefore, the existing data is updated monthly. Since April 2018, EPFO ​​publishes payroll data, covering the period from September 2017.