Jobs in India's informal sector achieved a historic milestone, crossing the 15-crore mark for the first time in January-March 2026, according to the latest quarterly data released by the National Statistical Office (NSO). The sector recorded nearly 15% year-on-year growth from 13.1 crore jobs in the corresponding period last year. This significant expansion demonstrates robust labour market growth in the unincorporated sector, which serves as a major employment source for skilled and unskilled workers across various socio-economic backgrounds.
The number of establishments in the informal sector showed even stronger growth, increasing nearly 17% year-on-year to 9.2 crore from 7.9 crore in the same period last year. As reported by The Times of India, the ownership structure of these establishments shifted significantly, with worker-proprietors accounting for 61% of employment, up from 58.3% in the corresponding quarter of the previous year. In contrast, the share of hired workers declined to 24.8% from 26.9% over the same period, indicating a trend toward self-employment and entrepreneurship in the sector.
The rural sector emerged as the primary driver of informal sector expansion, with establishments growing nearly 25% and the workforce increasing 31% during the quarter. According to the latest data, the rural sector registered a notable increase of 20.46%, while the urban sector witnessed growth of 12.59% during the same period. This strong rural performance reflects the growing importance of unincorporated enterprises in supporting the rural economy, with the rural workforce recording an increase of 21.65% compared to 10.39% growth in the urban sector.
Working owners continued to account for the largest share of the workforce in the unincorporated sector for January-March 2026, constituting 60.97% of total workers, compared to 58.29% in the corresponding quarter of the previous year. In contrast, the share of hired workers witnessed a marginal decline, falling to 24.77% from 26.86% over the same period. The growing importance of unincorporated enterprises in generating employment opportunities was further reflected in the robust growth, with the sector recording 15.51% year-on-year growth over the corresponding quarter of the previous year.
