Formal sector employment dips for a third consecutive month in November

Formal employment outlook is not so rosy

New entrants to formal job market dipped for a third consecutive month in October, according to data released by the Ministry of Statistics and Programme Implementation on December 26.

While new subscribers to the Employees’ Provident Fund Scheme declined to its lowest level this year of 0.75 million from 0.99 million in the previous month, subscriptions to lesser remunerative Employees' State Insurance Scheme (ESIC) also declined.

New subscribers to ESIC fell to a six-month low of 1.29 million in October compared with 1.51 million jobs added in the previous month.

However, the national pension scheme (NPS), which has a smaller base than the other two social security schemes, rose in October compared with the previous month.

NPS added 64,977 subscribers, the highest in five months, according to government data, as central government added more subscribers compared with the previous month.

Women gain as everyone loses out

Women’s share of new jobs added to the EPF improved in October compared with the previous month, as women accounted for around 28 percent of new jobs created up from 25 percent in the previous month.

While jobs for women and men both declined in October, new male subscribers declined more than women. New male subscriptions were down around 200,000 from the previous month, while women subscriptions were down 50,000 during this period.