New Delhi: Jobs in the informal sector witnessed a nearly 15% year-on-year growth, surpassing the 15-crore mark for the first time during January-March 2026, according to the latest quarterly data on unincorporated sector enterprises released by the National Statistical Office (NSO) on Thursday. The number of establishments in this sector also saw a significant increase of nearly 17% year-on-year, rising to 9.2 crore from 7.9 crore in the corresponding period of the previous year.
Healthy Labour Market Growth
The survey noted that this demonstrates a healthy labour market expansion in the sector, which serves as a major source of employment for a variety of skilled and unskilled individuals across different socio-economic backgrounds. The data further revealed that a majority of those employed, around 61%, were worker-proprietors, meaning they own the establishment where they work. This marks an increase from 58.3% in the same quarter of the previous year. In contrast, the share of hired workers in these establishments declined to 24.8% from 26.9% over the same period.
Services Sector Leads Growth
Sector-wise, the growth was primarily driven by services, where the number of establishments increased by nearly 25%, and the workforce expanded by 31%. The survey highlighted that the strong expansion of the service sector within the unincorporated economy reflects rising entrepreneurial activity, its growing role as a key driver of employment, and increasing demand for local services.
This surge in informal sector employment underscores the resilience and adaptability of India's labour market, even as the formal economy continues to evolve. The data points to a shift towards self-employment and small-scale entrepreneurship, particularly in services, which is absorbing a larger share of the workforce.
