India's Organised Sector Experiences Unprecedented Growth

In a landmark achievement for India's formal employment sector, the Employees' Provident Fund Organisation (EPFO) announced the addition of over 20 lakh net payrolls in May, marking the highest monthly expansion since formal tracking began in April 2018. This surge is a clear indicator of the steady formalisation of the workforce, spanning across genders, sectors, and regions.

Government's Pro-Youth Reforms Pay Off

Union labour and employment minister Mansukh Mandaviya hailed this milestone as a testament to the strength of India's formal employment landscape, attributing the success to Prime Minister Narendra Modi's leadership and the government's commitment to pro-youth and pro-worker reforms. The minister emphasized that these efforts are paving the way for a 'Viksit Bharat' by enhancing ease of doing business and economic empowerment.

Women and Youth Lead the Charge

The data revealed significant strides in women's participation in the formal workforce, with net female payroll additions reaching 4,25,000. Additionally, youth aged 18-25 accounted for the majority of first-time formal job entrants, highlighting the dynamic shift towards formal employment among younger demographics.

Sectoral and Regional Highlights

Manpower suppliers and expert services led the hiring spree, with significant contributions from textiles, garments, and other industries. Regionally, Maharashtra emerged as the top contributor, with several other states also showing robust growth in formal employment.

Looking Ahead

The historic payroll figures of May not only reflect seasonal hiring trends but also signal an evolving economic structure where formal employment is gaining traction. Ensuring the sustainability and quality of these jobs will be crucial for translating this momentum into long-term, secure livelihoods across the economy.