Livelihoods: Provisional data from the Employees’ Provident Fund Organisation (EPFO) shows the number of new workers who joined the formal workforce in February 2021 was the lowest in three months. Nearly half of the drop in new additions in February (from January data) was in the crucial 18-25 age group. This segment tends to be first-timers in the labour market.
An estimated 756,067 new workers joined in February 2021, down 106,000 from the previous month, and against 861,074 workers in December 2020. In the first-timers group, 411,000 subscribers were added in February 2021. This number was higher at 461,000 in January 2021 and almost 476,000 in December 2020.
With the sharp resurgence in COVID-19 infections, these numbers might worsen in March and April 2021. “The lockdown and curtailment of economic activities have a direct bearing on job creation. Fresh lockdowns, lack of demand in the market, and reverse migration will all show its impact on payroll additions in March and April,” said KR Shyam Sundar, a labour economist and professor at XLRI, Jamshedpur. However, he caveated his statement by highlighting that “EPFO payroll data does not give an overall picture of the jobs market.”
The payroll data released by EPFO every month is termed provisional.
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