Employment in India's unincorporated sector crosses record 13 crore

New Delhi, Sep 3 (IANS) Both establishments and employment in India’s unincorporated non-agricultural sector have risen sharply in the January-March and April-June quarters of 2025 over the levels reported in the Annual Survey of Unincorporated Sector Enterprises (ASUSE), 2023-24 annual estimates, according to official figures released by the Ministry of Statistics on Wednesday.

Employment in the unincorporated non-agricultural sector crossed the 13 crore mark for the first time in January-March 2025, reaching 13.13 crore—well above all previous ASUSE annual estimates, which had remained below 13 crore. It then eased to 12.86 crore in the April-June quarter. Employment estimates for the unincorporated sector in both quarters show a substantial increase over the ASUSE 2023-24 annual estimate of just over 12 crore workers, indicating a marked rise in overall employment levels in this sector, according to an official statement.

Women accounted for over 28 per cent of the workforce in both quarters, showcasing the sector’s importance as a driver of gender-inclusive growth and entrepreneurship. This is slightly higher than the same observed in ASUSE 2023-24.

The total number of establishments in the unincorporated non-agricultural sector rose to 7.94 crore during April-June 2025, compared to 7.85 crore in the previous quarter. This growth was driven primarily by the trade segment, which rose by 3.63 per cent and other services, which increased by 3.13 per cent.

The fluctuation in employment estimates during April-June 2025 is mainly linked to a reduction in the number of establishments engaging hired workers and a moderate performance of the unincorporated manufacturing sector in the quarter that witnessed the share of employment of the manufacturing sector falling by more than 2 percentage points in comparison to the previous quarter, the statement said.

The share of working owners rose from 58.29 per cent in the January-March quarter to 60.18 per cent in the subsequent quarter, suggesting a shift towards self-employment and entrepreneurial activities. The shift was particularly evident in manufacturing, where the share of hired workers saw the steepest decline, accompanied by the highest increase in working owners, signalling a strong move towards owner-driven enterprises, the statement explained.

The rural workforce increased from 5.97 crore to 6.25 crore during this period, indicating the rising role of unincorporated enterprises in rural economic activity, the statement explained.

The April-June 2025 quarter witnessed a rise in the use of the internet to 36.03 per cent from 34.20 per cent in the previous quarter by unincorporated enterprises, reflecting the sector’s gradual digital adoption. This shows that more and more establishments are leveraging online platforms for business operations and transactions, highlighting growing digital integration among these enterprises, the statement added.

--IANS

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