Context: The number of fresh formal jobs created fell by 10 per cent in 2023 compared to the previous year in the latest payroll data, reflecting a slowdown in the pace of formal job creation.
EPFO Data on New Formal Jobs Creation in 2023
- 9.06 million new subscribers joined the Employees Provident Fund (EPF) between January and October.
- The figure was 10.1 million in the corresponding period of the previous year. New Young Subscribers declined: The number of new young subscribers from the 18-28 age group declined by 11 per cent to 5.97 million this year from 6.71 million in the corresponding period last year.
- New Women Subscribers declined: The number of new women subscribers declined by 12 per cent to 2.35 million from 2.68 million last year.
- Lowest Unemployment Rate: This deterioration in the quality of employment comes in the wake of the lowest unemployment rate recorded in the country in the past six years.
- The recently released annual periodic labour force survey (PLFS) showed that the unemployment rate had dropped to a six-year low of 3.2 per cent in July-June 2022-23 from 4.1 per cent in July-June 2021-22.
- Increase in share of agriculture: The PLFS survey has shown that the share of people engaged in agriculture increased sharply to 45.8 per cent in 2022-23 from 45.5 per cent in 2021-22. (To know more about PLFS Survey 2022: Refer, PLFS, here).
- Decrease in manufacturing: The share of people engaged in manufacturing has decreased to 11.4 per cent from 11.6 per cent.
About EPFO and EPF
- Statutory Body: It came into existence under the Employees’ Provident Fund and Miscellaneous Provisions Act, of 1952.
- Administrating Ministry: The Ministry of Labour and Employment, Government of India.
- Central Board of Trustees: A tripartite Board consisting of representatives of Government (Both Central and State), Employers, and Employees administers the Acts and Schemes.
- Employees’ Provident Fund: It financial scheme that aims to provide retirement benefits to employees. It is a savings scheme established by employers and/or employees to accumulate a fund over a period of time, which can be withdrawn by the employee upon retirement or under certain specified conditions.
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About Formal Jobs
- Formal jobs or employment refers to a type of employment where the terms and conditions of work are regulated and protected by labor laws and employment contracts.
- Key Features of the Formal Jobs Sector, include:
- Formal Contracts: A written employment contract that specifies the terms of employment, such as job duties, working hours, pay, benefits, and other terms and conditions, is usually required for formal employment.
- Social Security: Social Security benefits, including health insurance, retirement accounts, provident funds, unemployment compensation, and other financial security, are frequently available to formal employees.
- Labor Rights: Formal employees are entitled to certain legal protections under labour laws, including the ability to engage in collective bargaining, form a union, be shielded from wrongful termination, and have access to legal representation in case of a dispute.
- Fixed and Timely Payment: Formal employees have a steady income stream from regular wages or salaries, often paid according to a set timetable.
Labour Framework in India
- Constitutional:
- ‘Labour’ as a subject is mentioned in the Concurrent list.
- Articles 14, 19, 21, 23 and 24 form part of the Fundamental Rights which provide Labour Protection.
- Articles 38, 39, 39-A, 41, 42, 43, 43-A and 47 form part of the Directive Principles of State Policy concerning labour protection.
- Legislative: 4 labour Codes:
- Code of Wages, 2019
- Industrial Relations Code, 2020
- Social Security Code, 2020
- Occupational Safety, Health and Working Conditions Code, 2020.
- Judicial: “Even though the principle of ‘Equal pay for Equal work’ is not defined in the Constitution of India, it is a goal which is to be achieved through Article 14,16 and 39 (c) of the Constitution of India.” – SC stated in Randhir Singh vs Union of India, 1982.
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News Source: BS
27 Dec 2023
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