India's vast unincorporated sector demonstrated remarkable stability in employment figures during the July-September quarter, maintaining a workforce of approximately 12.9 crore people, according to recent government data. The latest quarterly bulletin released by the statistics office reveals that employment levels remained almost unchanged from the previous quarter, indicating sustained economic activity in this crucial segment.
Establishment Growth and Workforce Distribution
The survey data shows encouraging signs of expansion in the number of operational units across the country. The total number of establishments increased from 7.9 crore in April-June to nearly 8 crore in the July-September period, representing steady growth in business formation. This upward trend suggests growing entrepreneurial activity despite economic challenges.
Working owners continued to dominate the employment landscape, accounting for 59.98% of the total workforce in the September quarter. However, a significant shift occurred in the composition of hired workers, whose percentage share increased from 24.4% in April-June to 25.9% in the subsequent quarter. This indicates that more establishments are expanding beyond family labor and creating formal employment opportunities.
Urban Employment Surge and Digital Transformation
Urban areas emerged as significant contributors to job creation during the survey period. The estimated urban workforce grew from 6.61 crore in April-June to 6.9 crore in the September quarter, reflecting increased labor absorption in cities and towns. This urban employment surge points to expanded economic activity and better job opportunities in metropolitan centers.
Digital integration continues to transform operations in the unorganized sector. The survey highlights that nearly 39% of establishments used internet services in the July-September quarter, compared to 36% in the previous three months. This steady rise in internet adoption demonstrates how small businesses are increasingly leveraging online platforms for daily operations and financial transactions.
Women Workforce and Registration Trends
Women's participation remained robust in the unorganized sector, with female workers accounting for 28.7% of total employment. This substantial representation underscores the critical role women play in this segment of the economy and highlights opportunities for gender-inclusive growth policies.
The data also reveals that establishments are becoming more formalized, with a growing percentage of firms reporting some form of registration. While the number of establishments increased by 5.3%, workforce growth outpaced this at 7.2%, suggesting that existing businesses are expanding their hiring alongside new ventures entering the market.
The overall picture that emerges from the survey is one of resilience and gradual transformation in India's unorganized sector, characterized by steady employment, growing digital adoption, and increasing formalization among small enterprises.
