India created 29 lakh less new payrolls during FY 2020 on a year-on-year basis, estimated an SBI Ecowrap report.
The overall figure is the sum of existing and new payrolls.
Accordingly, the data released indicates that net new EPF subscribers during FY20 was 94.7 lakh which was 17.8 lakh lower than the FY19 payroll numbers.
“However, this does not represent the correct picture as such data includes number of exited members who rejoined and re-subscribed. Hence, this is not purely fresh job creation,” the report said.
“We subsequently estimated the actual net new payroll (first job) adjusted for rejoined or re-subscribed members and formalisation (based on ECR data). As per our calculation, the actual net new payroll was 60.8 lakh for FY20. This was 28.9 lakh less than the net new payroll generated in FY19.”
As per the report, India created far lesser new payroll in FY20 compared to FY19 even though at that time Covid-19 pandemic had not yet created havoc.
“The situation is very grave for FY21. The real GDP is expected to decline by 6.8 per cent in FY21 and various estimates suggest that significant number of people will lose their livelihood this fiscal,” the report said.
“Globally also, according to ILO, massive losses in working hours, equivalent to 305 million full-time jobs, are predicted for the second quarter of 2020….”