Workers in unincorporated sector dip to 128.5 mn in Q1 FY26: Govt survey

The number of workers employed in unincorporated sector enterprises has come down to 12.85 crore in April-June from 13.13 crore in the preceding quarter, according to a government survey released on Wednesday.

The National Statistics Office (NSO) released the first Quarterly Bulletin of Unincorporated Sector Enterprises (QBUSE), providing estimates for January-March 2025 and April-June 2025, an official statement said.

The QBUSE is the quarterly edition of the Annual Survey of Unincorporated Sector Enterprises (ASUSE), presenting key estimates at more frequent intervals based on the data collected in the quarters in ASUSE, it stated.

It explained that the fluctuation in employment estimates during April-June 2025 is mainly linked to 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.

Employment in the sector crossed the 13 crore mark for the first time in JanuaryMarch 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 202324 annual estimate of just over 12 crore workers, indicating a marked rise in overall employment levels in this sector.

The number of establishments in the unincorporated sector is estimated at 7.85 crore in JanuaryMarch 2025 and 7.94 crore in AprilJune 2025.

It stated that employment in the sector crossed the 13 crore mark for the first time in JanuaryMarch 2025, reaching 13.13 crore - well above all previous ASUSE annual estimates.

Both establishments and employment in the sector have risen sharply in these quarters over the levels reported in the ASUSE 202324 annual estimates, it stated.

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 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 percentage share of hired workers fell from 26.86 per cent in January-March to 24.38 per cent in April-June.

The share of working owners rose from 58.29 per cent in January to 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 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.

However the data showed that percentage share of other workers (including unpaid family workers) increased from 14.85 per cent in January-March to 15.44 per cent in April-June, 2025..

At all-India level, 5,885 First Stage Units (2,423 villages in rural sector and 3,462 UFS blocks in urban sector) have been surveyed during the quarter January, 2025 March, 2025 while 5,893 First Stage Units (2,424 villages in rural sector and 3,469 UFS blocks in urban sector) have been surveyed during the quarter April, 2025 June, 2025.

This excludes FSUs of Andaman & Nicobar Islands, Lakshadweep, Ladakh and rural areas of Arunachal Pradesh and Nagaland which are not considered for this quarterly bulletin, as sub-round restrictions were not imposed in these areas while conducting field-work, due to arduous field conditions..

Accordingly, the number of establishments surveyed (excluding these states/UTs/areas) and considered for this bulletin are 1,64,497 (71,382 in rural and 93,115 in urban) for the quarter January, 2025 March, 2025 and 1,64,001 (71,486 in rural and 92,515 in urban) for April, 2025 June, 2025. PTI KKS 1.0.