Employment in unincorporated sector rises to 12.85 crore in Q2
New Delhi: Employment in the Unincorporated Sector Enterprises (USE) rose marginally to 12,85,95,600 in July-September from 12,85,72,500 in the preceding quarter, a government survey, released on Tuesday, showed.
The National Statistics Office (NSO) released Quarterly Estimates of the Unincorporated Non-Agricultural Sector for the July-September 2025, an official statement said.
According to the survey, the employment in the sector, which comprises businesses that are not registered as separate legal entities, was down in the second quarter of FY26 compared to 13,13,380,00 in the January-March quarter of 2025.
The use of internet among enterprises in this sector increased steadily from 36 per cent in April- June 2025 to 39 per cent during July–September 2025, it stated.
The survey captured unincorporated non-agricultural establishments belonging to three sectors -- Manufacturing, Trade and Other Services.
The quarter marked a notable recovery in the unincorporated manufacturing sector, with improvements in both employment and establishment numbers over the last quarter, it stated.
The share of establishments in the manufacturing sector increased from 26 per cent to 27 per cent, and that of employment in the manufacturing sector increased from 26 per cent to 28 per cent.
The women workforce remained impressive, constituting 28.70 per cent of total employment in the sector.
“Despite global challenges and trade uncertainties, the unincorporated sector stayed afloat during the July–September quarter. Estimated establishments increased from 7.94 crore in April-June 2025 to 7.97 crore in July-September 2025, reflecting a marginal quarter-on-quarter rise,” it said.
However, it stated that the estimate for this quarter reflects a notable rise over the Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2023-24 figure of a little over 12 crore workers, indicating an overall expansion in employment within the unincorporated non-agricultural sector.
The proportion of establishments employing hired workers in the unincorporated non-agricultural sector was recorded at 13.41 per cent in this quarter, reflecting a marginal increase over the last quarter.
Working owners continued to account for the largest share (59.98%) in the July-September 2025 quarter as in the earlier quarters, it stated.
However, it noted that the percentage share of hired workers during the quarter increased from 24.38 per cent in April-June to 25.91 per cent in this quarter.
The increase in the estimated urban workforce from 6.61 crore (previous quarter) to 6.91 crore (current quarter) indicates a rise in employment in the enterprises in urban areas, reflecting greater labour absorption and expanded economic activity during this period, it stated.
The quarter marked a notable recovery in the unincorporated manufacturing sector, with improvements in both employment and establishment numbers over the last quarter, it stated.
While the number of establishments increased by 5.29 per cent, the corresponding growth in workforce was observed to be 7.20 per cent, it stated.
Many unincorporated manufacturing units depend on casual labour, migrant workers, and helpers who often shift to seasonal agricultural work in the preceding quarter and return when manufacturing activity strengthens, leading to a rise in employment rather than in the number of establishments, it noted.
To support the transition for Quarterly estimates, the overall sample size has been increased by approximately 1.5 times from the ASUSE conducted previously, and the survey has been further refined to ensure the production of robust, reliable, and timely quarterly estimates.
