Business

Around 6 Lakh Formal Sector Jobs Created Per Month In FY18: EPFO, NPS Data

DIVYIA ASTHANA | 0
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| January 17 , 2018 , 12:07 IST

Putting to rest speculations that jobs are not being created in the formal sector, a study authored by SBI group Chief Economic Advisor Soumya Kanti Ghosh and Indian Institute of Management, Bangalore professor Pulak Ghosh has shown that in the current financial year 590,000 jobs were generated every month until November.

The study calculated the number of jobs created using data from the membership of Employees' Provident Fund Organisation (EPFO), Employees' State Insurance Corporation, General Provident Fund and National Pension System (NPS).

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Former NITI Aayog vice-chairman Arvind Pangariya had also recommended using the EPFO and NPS database to study employment.

Expanding on the recent trends on a pro-rata basis, 7 million jobs are expected to be created in the formal sector in 2017-18, the study found.

Titled “Towards a Payroll Reporting in India” the study estimated that around 3.68 million jobs were generated till November of FY18, indicating around 5.5 million in the entire year, meaning an increase from the 4.5 million created the previous financial year, which was marred by the demonetisation.

According to the study, the top 10 sectors of the economy, namely, manufacturing and usage of computers, chemicals, textiles, contract engineering, garments, building and construction, trading, general engineering products and expert services — contribute around 75 percent of the total employment in the formal sector in India.