INDUSTRY
With 15.17 crore workers, informal sector jobs grow by 15.53% in Q1 of 2026
- IBJ Bureau
- May 22, 2026
The unincorporated, non-agricultural sector recorded notable 15.53 per cent year-on-year (YoY) growth in employment during the January-March quarter of 2026 compared with the corresponding quarter of 2025.
The surge was primarily driven by the Other Services sector, which posted more than 31 per cent YoY growth in employment during the same period, according to quarterly data released by the Ministry of Statistics and Programme Implementation (MoSPI).
Employment in the informal sector also grew by 23.6 per cent over the previous quarter of October-December 2025.
The informal sector employed 15.17 crore workers in the first quarter (Q1) of 2026, up from 13.13 crore in the corresponding quarter of 2025 and 12.27 crore in the preceding October-December quarter of 2025.
The sector plays a crucial role in expanding employment opportunities, promoting grassroots entrepreneurship and contributing significantly to the country’s Gross Domestic Product (GDP).
The number of establishments grew by 16.7 per cent YoY to 9.16 crore during the quarter in question, driven by a 20.46 per cent rise in the rural sector. The urban sector recorded 12.59 per cent growth during the same period.
According to the Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2025, the unincorporated sector had an estimated 7.92 crore establishments and 12.8 crore workers.
The proportion of establishments employing hired workers stood at 13.54 per cent in the Q1 of 2026.
The percentage of workers hired on a fairly regular basis was estimated at 24.77 per cent.
Working owners continued to form the largest share of the workforce, accounting for 60.97 per cent of total workers, up from 58.29 per cent in the corresponding quarter of the previous year.
The data showed that 41.37 per cent of establishments reported registration under at least one Act or authority in the Q1 of 2026.
Indicators of digital adoption improved sharply, with around 81 per cent of establishments using the internet for entrepreneurial purposes and adopting cashless modes of transaction.
This is a significant jump from 48 per cent of establishments using the internet in the October-December quarter of 2025.
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