The latest payroll data from the Employees’ Provident Fund Organisation (EPFO, India’s social security organisation) indicates a slight dip in the creation of new formal jobs in July, signalling stagnation in the labour market. New monthly subscribers to the employees’ provident fund (EPF, India’s retirement benefits programme) declined by 1.2% to 1.02 million in July, compared to 1.03 million in June, The Business Standard reports, citing data from the Organisation.

The data revealed that of the 1,027,145 new subscribers in July, the share of young subscribers between the ages of 18 and 28 increased to 68.3% (701,543) from 67.5% (701,315) in June. This increase is significant as subscribers in this age bracket are often entering the labour market for the first time, serving as a barometer for its health. Conversely, the proportion of women gaining employment declined to 26.8% (274,967) in July from 27.6% (286,984) in June.

Rituparna Chakraborty, co-founder of TeamLease Services, noted that although there was a minor slowdown in July, the hiring momentum established earlier in the financial year is expected to persist in the short to medium term, particularly with the onset of the festive season, which typically stimulates job creation.