Payroll numbers rise in June to pre-covid levels as old exits return

Topics Payroll data | EPFO data

The payroll data should not be confused with jobs but should be taken as formalisation of economic activities
Net additions to subscription to the Employees’ Provident Fund (EPF) in June have brought the payroll numbers to the level of the pre-covid period (see chart). 

However, this was largely due to those exiting the subscription in the previous months joining back in the month of June. 

If only the new payroll members are taken into account, there is still some way to go in getting back to the pre-covid period-–498,262 in June this year compared to 920,057 a month on average in 2019-20 and 1.2 million a month the preceding year (2018-19). 

The payroll data should not be confused with jobs but should be taken as formalisation of economic activities. 

However, there is surge in both new payroll members as well as net additions in June, compared to April and May of 2020. In fact, many lead indicators such as sharp deceleration in the decline rates of the index of industrial production, exports, purchasing managers’ indices (PMI), also showed nascent recovery in economic activities. 

It was in July that some indicators showed that the recovery won’t be coming as quickly. In that respect, July payroll data would be keenly watched. 

2018-19
13944349
12296941 4464815 6112223
Average a month in 2018-19
1162029
1024745 372068 509352
2019-20
11040683
10996914 7814625 7858394
Average a month in 2019-20 Covid period:
920057
916409 651219 654886
April, 2020
177462
408355 251057 20164
May, 2020
303388
445625 314411 172174
June, 2020 498262 296936 453985 655311



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