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Employment in India’s unincorporated sector surges past 15 crore: Govt

  • BY India News Newsdesk
  • May 21, 2026
  • 0 COMMENTS

New Delhi, May 21 (IANS) Number of establishments and overall employment in India’s unincorporated non‑agricultural sector recorded strong growth in the Q1 CY26, with jobs in the sector touching 15.17 crore, up 15.51 per cent year‑on‑year, an official statement said on Thursday.

The quarterly bulletin from the National Statistics Office estimated that the number of unincorporated establishments grew 16.69 per cent year‑on‑year to 9.16 crore.

The rural sector emerged as the primary driver of this growth, registering a notable increase of 20.46 per cent. The urban sector witnessed a growth of 12.59 per cent during the same period.

Around 81 per cent of establishments in the unincorporated non-agricultural sector have used the internet for entrepreneurial purposes and adopted cashless modes of transaction, the statement from Ministry of Statistics & Programme Implementation said.

The women workforce remained impressive, constituting more than 29 per cent of total employment in the sector.

Working owners continued to account for the largest share of the workforce in the unincorporated sector for the January–March 2026 quarter, constituting 60.97 per cent of total workers, compared to 58.29 per cent in the corresponding quarter of the previous year. In contrast, the share of hired workers witnessed a marginal decline, falling to 24.77 per cent from 26.86 per cent over the same period.

A robust growth was seen in the rural workforce supported by the sector, up 21.65 per cent during the period as against 10.39 per cent growth in the urban sector.

Many unincorporated units depend on casual labour, migrant workers, and helpers who often shift to seasonal agricultural work and return either as an entrepreneur or as a worker when activity in the sector strengthens, leading to a rise in employment and establishments.

Unincorporated services sector also saw significant growth with the number of establishments up 24.82 per cent, and the workforce grew by 31.13 per cent.

—IANS

aar/pk

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