India’s formal employment sector showed signs of recovery in March 2025, breaking a three-month decline in fresh formal hiring. According to data released by the Employees’ Provident Fund Organisation (EPFO), new monthly subscribers under the Employees’ Provident Fund (EPF) rose to 7.54 lakh in March, marking a modest two per cent increase from February’s 7.39 lakh.
The EPFO’s monthly figures are a key indicator of the health of India’s formal labour market, as they reflect employment tied to social-security benefits and legal protections. In March 2024, the number of new EPF subscribers stood at 7,47,146, showing a marginal year-on-year improvement this year, in 2025.
Youth employment saw a notable rise. Of the total new subscribers in March, individuals aged 18 to 25 accounted for 59 per cent or 4.45 lakh of the total new additions. This is a jump from 57.7 per cent in February, suggesting improved opportunities for fresh entrants in the job market.
However, the representation of women among new subscribers slightly declined. Women made up 27.6 per cent (2,08,000) of the new joiners in March, down from 28.1 per cent in the previous month.
The net payroll addition—which includes new joiners, those who exited, and returning subscribers—stood at 1.46 million. While this number is provisional and subject to revision, it provides a broader view of employment dynamics.
Additionally, around 1.32 million individuals exited and rejoined the EPF system in March, indicating a 12.7 per cent annual increase. These workers chose to transfer their EPF accounts instead of withdrawing funds, signalling greater awareness of long-term financial planning and continued social-security coverage.
The March data suggests cautious optimism in India’s formal employment landscape, driven largely by young job seekers and improved labour mobility.p
