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India’s formal job market expands: Young workforce leads the charge
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  • India’s formal job market expands: Young workforce leads the charge

India’s formal job market expands: Young workforce leads the charge

FP News Desk • May 27, 2025, 23:23:37 IST
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Both manufacturing and service sectors saw an uptick in hiring. The Employees’ Provident Fund Organisation (EPFO), which tracks formal employment through payroll data, reported a net addition of 1.46 million members in March 2025

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India’s formal job market expands: Young workforce leads the charge
India's formal sector has expanded. File image/Moneycontrol

The Employees’ Provident Fund Organisation (EPFO), which tracks formal employment through payroll data, reported a net addition of 1.46 million members in March 2025. Significantly, young adults aged between 18 and 25 accounted for nearly 59 per cent of these new members, the sign of a robust influx of first-time job seekers into the organised employment sector.

This growth aligns with broader positive labour market trends, as evidenced by the latest figures from the Periodic Labour Force Survey (PLFS). The survey indicated an unemployment rate of 5.1 per cent in April 2025 for individuals aged 15 years and above. Notably, the unemployment rate among younger segments (15-29 years) stood slightly higher at 14.4 per cent for females compared to 13.6 per cent for males, largely attributed to a growing number of young women pursuing higher education and vocational training.

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Further supporting the expansion of the formal employment market, India’s white-collar job segment showed signs of revival. The Naukri JobSpeak index reported a 9 per cent year-on-year growth in hiring activity for April 2025, marking a recovery after a slowdown experienced in March. Prominent sectors fueling this rebound included pharmaceuticals, real estate, global capability centers (GCCs), and oil and gas.

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Both manufacturing and service sectors saw an uptick in hiring. The Purchasing Managers’ Index (PMI) employment sub-indices for these sectors remained in expansionary territory for the fourteenth consecutive month, showing sustained confidence and growth momentum.

Collectively, these indicators point to a strengthening and increasingly formalized job market in India, driven by young, skilled professionals eager to enter organized employment and a resilient economic backdrop despite global uncertainties.

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