In 2023, the creation of new formal jobs witnessed a notable dip of approximately 10% compared to the previous year. This decline, derived from the latest payroll data released by the Employees’ Provident Fund Organisation (EPFO), signals a slowdown in formal job generation. This trend is particularly significant as the formal workforce, covered by social security benefits and labor laws, is the focal point.
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The available EPFO data until October 2023 reveals that 9.06 million new subscribers enrolled in the Employees’ Provident Fund (EPF) from January to October, showing a decrease from the 10.1 million during the same period in the previous year.
Additionally, the data indicates an 11% drop in new young subscribers, aged 18 to 28, totaling 5.97 million in 2023 compared to 6.71 million in the corresponding period the previous year. This decline among first-time labor market entrants in this age group highlights a shift in the market's vigor.