India’s formal job creation maintained steady growth in the first half of FY25, despite a slowdown in September. New additions across major social security schemes showed an increase compared to the same period last year, signaling a strong start to the fiscal year.
New enrollments in the Employees’ Provident Fund (EPF) scheme rose 2.3% in H1FY25, adding 6.1 million employees. The Employees’ State Insurance Corporation (ESIC) scheme saw faster growth, with enrollments up 5.2% to 9.3 million. Subscriptions to the National Pension System (NPS) also increased by 6.8%.
Slower Job Creation Growth in the Second Quarter
However, growth slowed in the July-September quarter. EPF enrollments remained flat compared to Q2FY24. New additions dropped to 0.95 million in September, the lowest monthly figure this year. ESIC enrollments also declined to a five-month low of 1.5 million in September.
Despite the slowdown, ESIC enrollments grew 6.8% in Q2FY25 compared to Q2FY24. This suggests stronger demand for lower-paying jobs or rising formalization in smaller organizations.
Economic Growth and Unemployment Trends
India’s GDP grew by 6.5% in Q2FY25, slightly below the 6.7% recorded in Q1FY25. Urban unemployment dropped to 6.4%, the lowest in years, reflecting an increase in salaried employment.
While September data signals caution, the first half’s strong job creation numbers underline the resilience of India’s formal job market.
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