Jobs in unincorporated sector rose marginally in Q2, shows NSO data

Meanwhile, the number of establishments in the sector rose to 79.7 million from 79.42 million during the corresponding period

Around 128.6 million people were employed in the unincorporated sector during July-September of FY26, showed the latest quarterly bulletin of unincorporated sector enterprises released by the National Statistics Office (NSO) on Tuesday. This is slightly higher than the 128.57 million in the previous quarter.

 

Meanwhile, the number of establishments in the sector rose to 79.7 million during July-September from 79.42 million in the previous quarter.

 

“Both the number of establishments and overall employment recorded marginal growth (in Q2) compared to the previous quarter (April-June) despite global headwinds,” said NSO in a statement.

 

Unincorporated enterprises refer to business entities that are not legally incorporated as separate legal units. These typically include small businesses, sole proprietorships, partnerships, and informal sector businesses.

 

Besides, the share of hired workers establishments (HWE) in the unincorporated non-agricultural sector was at 13.41 per cent in Q2, reflecting a marginal increase (13.25 per cent) over the preceding quarter. 

 

HWEs are establishments that have employed at least one hired worker on a fairly regular basis. It reflects the growth in the operation of an establishment.

 

On a sectoral basis, the quarter marked a notable recovery in the unincorporated manufacturing sector. Improvements were seen in both employment and establishment numbers compared to the last quarter.

 

The share of manufacturing establishments increased to 27 per cent in Q2 from 26 per cent in Q1. The share of workers employed in the manufacturing sector rose to 28 per cent from 26 per cent.

 

“Many unincorporated manufacturing units depend on casual labour, migrant workers, and helpers who often shift to seasonal agricultural work (in Q1). They return when manufacturing activity strengthens, leading to a rise in employment rather than in the number of establishments,” said NSO in a statement.

 

Meanwhile, the survey also reflects growing digital integration of the unincorporated sector as the use of the internet among enterprises in this sector continues to show a steady rise.

 

This comes as more and more establishments are leveraging online platforms for business operations and transactions, highlighting growing digital integration among these enterprises.

 

Nearly 39 per cent of the unincorporated establishments used the internet in Q2 compared to 36 per cent in Q1.

 

“The percentage of firms reporting some form of registration increased, signalling a clear trend towards greater formalisation,” the report added.