A brick factory workers stack bricks on carts in Dhaka, Bangladesh, January 9, 2019. REUTERS/Mohammad Ponir Hossain - RC19159104A0
The number of persons who exited the Employees' Provident Fund Organisation (EPFO) in October 2020 is the lowest so far in this fiscal, as per the latest data.
As many as 2,40,163 individuals exited the EPFO against 4,78,316 people in the month of September indicating a nearly 50 percent month-on-month reduction in the number of people who exited the EPFO.
The number of persons who exited the EPFO stood at 6,65,405 in April, 8,34,623 in May, 8,87,567 in June, 7,38,038 in July, and 6,25,659 in August.
Prashant Singh, Vice President and Business Head- Compliance and Payroll Outsourcing, TeamLease Services, said, "The data talks about the sentiment of industry and stability in various sectors like services, pharma, e-commerce, food tech, fintech and Ed tech."
"Returning of migrant workers to their work states with hotels, restaurants and bars opening up (though with defined timelines) has also pushed the stability and continuity of employment. various initiatives taken by state and central government and schemes like Aatmanirbhar Bharat Rozgar Yojana have provided an impetus to the local and workers who have stayed back in their home state," he added.
"To add to this the festive season starting early October till December has also raised the sentiments, confidence and overall stability to the economy, employment and growth," Singh noted.
"October and November in 2020 were peak season period in India given Dussehera and Diwali, during such a period average earning increases and so does hiring and requirement of workforce," said Lohit Bhatia, President, Indian Staffing Federation.
"This period also coincides with bonus and such payouts, accordingly for personnel who have been in the company in the past will refrain from moving or exiting the employer losing their bonuses," Bhatia added.
Commenting on the outlook, Lohit Bhatia said, "While their is increase in economic activity which means downsizing by any employer will be lower, in coming days the attrition should rise again as more job opportunities create higher healthy attrition. Having said that, employers reducing workforce only due to Covid19 which was the scenario in Q1 and Q2 has substantially reduced."
As many as 44,69,771 individuals have exited the EPFO in this fiscal so far.