India’s formal employment sector showed signs of recovery in March 2025, ending a three-month slump in fresh hiring. As per data released by the Employees’ Provident Fund Organisation (EPFO), the number of new monthly subscribers under the Employees’ Provident Fund (EPF) rose to 7.54 lakh, reflecting a modest 2 per cent increase from February’s 7.39 lakh.
EPFO’s monthly data is considered a vital barometer of the country’s formal labour market health, offering insight into employment tied to social-security benefits and legal protections. Compared to March 2024, which saw 7,47,146 new subscribers, the current figures signal a marginal year-on-year improvement.
A significant boost came from youth employment. Individuals aged 18 to 25 made up 59 per cent of the total new subscribers in March—approximately 4.45 lakh—up from 57.7 per cent in February. This indicates growing opportunities for first-time job seekers in the formal economy.
On the other hand, women’s representation among new subscribers experienced a slight dip. Women accounted for 27.6 per cent (2.08 lakh) of new additions in March, compared to 28.1 per cent in the previous month.
The net payroll addition—which factors in new joiners, exits, and re-entrants—stood at 1.46 million, though this figure remains provisional. Notably, around 1.32 million workers exited and then rejoined the EPF system in March, marking a 12.7 per cent annual increase. These workers chose to transfer their EPF accounts instead of withdrawing their funds, indicating greater financial awareness and a commitment to long-term social-security benefits.
Overall, the March data presents a picture of cautious optimism, with youth-driven hiring and increased labour mobility contributing to a tentative rebound in the formal employment landscape.
