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India's formal sector adds 1.45 million to workforce in March

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India’s organised sector added 1.45 million net to its formal jobs in March 2025, marking a 1.15% rise during the same month last year, as per the provisional payroll data released by the ministry of labour and employment on Wednesday.

The data, compiled by the Employees’ Provident Fund Organisation (EPFO), tracks employment trends across firms employing 20 or more workers. In March, around 0.75 million new subscribers joined the EPFO, up 2.03% from February and 0.98% higher than in March 2024.

“This growth in new subscribers can be attributed to growing employment opportunities, increased awareness of employee benefits, and EPFO’s successful outreach programs,” the ministry said in a statement, quoted by ET.

A sector-wise comparison revealed notable job growth in industries such as restaurants, cement, general insurance, and travel agencies.

Youth remained the dominant force behind the surge in new employment. Of the new members added in March, 58.9%, or roughly 0.44 million, fell into the 18 to 25 age group, reflecting an increase of 4.73% over the same period last year.
The net payroll addition for this age group was about 0.66 million, reflecting a 6.49% year-on-year growth.

“This is in consonance with the earlier trend, which indicates that most individuals joining the organised workforce are youth, primarily first-time job seekers,” the ministry added.

Furthermore, 1.32 million members excited and later rejoined the EPFO in March, an 11.8% increase as compared to the 1.18 million who joined in March 2024.

The ministry said this trend indicated that more workers are choosing to transfer their provident fund balances instead of withdrawing them, “thus safeguarding long-term financial well-being and extending their social security protection,”
Women's participation in formal employment also surged with almost 0.29 million net female members added to the EPFO rolls in March, while 0.20 million joined as new subscribers. This represents a 0.78% rise in net additions and a 4.18% increase in new female subscribers compared to a year earlier.

“The increase in female member additions is indicative of a broader shift towards a more inclusive and diverse workforce,” the ministry said.
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