India’s Informal Sector Jobs Rise 15% YoY, Employment Tops 15 Crore

New Delhi, May 22 (KNN) Employment in India’s informal sector rose nearly 15 percent year-on-year to cross the 15-crore mark for the first time during the January-March quarter of 2026, according to the latest quarterly survey of unincorporated sector enterprises released by the National Statistical Office (NSO).
 
The survey showed that employment in the sector increased to more than 15 crore workers during the quarter, compared with 13.1 crore in the corresponding period of the previous year.
 
The number of establishments operating in the unincorporated sector also recorded strong growth, rising nearly 17 percent year-on-year to 9.2 crore from 7.9 crore a year earlier, reported Times Of India.
 
Rise in Self-Employment and Entrepreneurial Activity 
 
According to the survey, the expansion reflects healthy labour market growth in a sector that remains a major source of livelihood for both skilled and unskilled workers across diverse socio-economic backgrounds.
 
The data further revealed a growing share of worker-proprietors in the sector. Around 61 percent of those employed were owner-workers managing their own establishments, up from 58.3 percent in the January-March quarter of 2025.
 
In contrast, the proportion of hired workers declined to 24.8 percent from 26.9 percent during the same period, indicating a greater contribution from self-employment and entrepreneurial activity.
 
Services Sector Leads Growth in Jobs and Enterprises 
 
Among various segments, the services sector emerged as the primary driver of growth. The number of service-sector establishments increased by nearly 25 percent year-on-year, while employment in the segment expanded by 31 percent.
 
The survey noted that the strong performance of the services sector within the unincorporated economy reflects rising entrepreneurial activity, increasing demand for local services and its growing role as a key contributor to employment generation.
 
The findings highlight the continued importance of the informal and unincorporated sector in supporting livelihoods, fostering entrepreneurship and contributing to overall employment growth in the economy.
 
(KNN Bureau)