Outlook Business Desk
Net formal job creation according to Employees’ Provident Fund Organisation (EPFO) data fell for two consecutive years till FY25, reversing sharply from record levels in FY23.
EPFO added 12.9 million jobs in FY25, down from 13.1 million in FY24 and 13.8 million in FY23, as per The Economic Times . The sequential slowdown highlights weaker hiring momentum after the earlier surge during government-backed enrolment drives.
The fall in EPFO-linked jobs translates to a 1.3% drop in FY25 and 5.1% in FY24. FY23 had witnessed the strongest spike, helped by pandemic-linked incentives under the Atmanirbhar Bharat Rojgar Yojana (ABRY).
In FY25, 52,309 establishments filed their first Electronic Challan cum Return (ECR), down 6.6% from 56,023 in FY24. Interestingly, FY24 had seen a small rise in ECR filings compared to FY23’s 55,337, showing a reversal last year.
According to officials, the slowdown is mainly because FY23 numbers were unusually high. During 2020–22, the Atmanirbhar Bharat Rojgar Yojana encouraged employers to hire more people and re-employ those who had lost jobs during the Covid-19 pandemic.
By March 31, 2024, the government had disbursed ₹10,188.50 crore under ABRY to 6.05 million workers through 1.52 lakh establishments. This was less than half the ₹23,000 crore originally earmarked for the scheme.
Experts flagged a mismatch between job creation and economic growth. While India’s GDP expanded 7.6% in FY23, 9.2% in FY24, and 6.5% in FY25, formal jobs under EPFO did not keep pace with output growth.
Industry voices said the pace of formal job creation is falling behind India’s economic expansion, with private companies cautious on hiring amid global uncertainty. They added that the Employment Linked Incentive scheme indicates government's intent to boost workforce growth.