20L formal job additions reported in May; surge spans gender, sectors & regions: EPFO
India's organised sector witnessed its strongest monthly expansion to date in May, with Employees' Provident Fund Organisation (EPFO) reporting net payroll additions of over 20 lakh, the highest since formal tracking began in April 2018, provisional data from labour ministry showed on Monday.
The surge spans gender, sectors and regions, underscoring steady formalisation of the workforce.
Union labour and employment minister Mansukh Mandaviya described the milestone as "a testament to the growing strength of India's formal employment landscape". He credited it to "the direct result of PM Narendra Modi's visionary leadership and govt's unwavering commitment to pro-youth, pro-worker reforms", adding that "ease of doing business and economic empowerment is yielding tangible outcomes for a Viksit Bharat".
Women's participation in the formal workforce also saw strides, with net female payroll additions reaching 4,25,000, marking a 7.5% increase over April and a 15% year-on-year rise. First-time formal job entrants numbered 9,42,000, up from 8,49,000 in April, driven largely by youth - workers aged 18-25 - who accounted for 8,73,000 net additions amid a 15.1% month-on-month rise. Job-switchers who transferred their EPFO accounts without withdrawing funds totalled 16 lakh in May, rising 2.1% from April and 14.3% from last year.
by Taboola
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The ministry noted that such behaviour "safeguards long-term financial well being and extends their social security protection".
Sector-wise, manpower suppliers led with around 4,63,000 hires, followed by expert services at 1,38,000. Industries spanning textiles, garments, security, contracting, engineering, cleaning and finance contributed significantly, collectively supporting the surge. Regionally, Maharashtra led the pack by contributing 20.3% of net additions, with Karnataka, Tamil Nadu, Gujarat, Haryana, Delhi, Uttar Pradesh and Telangana each delivering over 5%.
Together, the top five states and UTs accounted for nearly 60% of national payroll growth.
May's historic payroll figures reflect more than seasonal hiring - it signals an evolving economic structure where formal employment, especially among youth and women, is gaining traction. The sharp rise in first-time entrants and account portability suggests enhanced job confidence and workforce fluidity. Still, sustaining this momentum hinges on ensuring the longevity and quality of these emerging formal jobs, requiring stronger skill development and social protection frameworks to translate job numbers into secure, resilient livelihoods across the economy.
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