Number of unincorporated sector enterprises rose to 7.97 cr, job growth nearly flat

The number of Unincorporated Sector Enterprises has gone up to 7.97 crore at the end of September quarter from 7.94 crore during previous quarter, a survey report by Statistics Ministry said in Monday. However, number of workers remained flat at 12.86 crore, the same number in the last quarter.

“Despite global challenges and trade uncertainties, the unincorporated sector stayed afloat during the July–September quarter,” a statement issued along with survey result said. An unincorporated sector enterprise refers to an entity which is not registered under the companies law.

Talking about employment, the report noted that though the number remained the same, the estimate for this quarter reflects a notable rise over the annual ASUSE (Annual Survey of Unincorporated Sector Enterprises) 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,” it said. Working owners continued to account for the largest share (around 60 per cent) in the July-September 2025 quarter as in the earlier quarters.

Urban areas

However, 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,” the report said.

Taking note of robust recovery in the unincorporated manufacturing sector, the report said that while the number of establishments increased by 5.29 per cent, the corresponding growth in workforce was observed to be 7.20 per cent. “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 said.

The use of internet among enterprises rose to 39 per cent against 36 per cent. “Use of the internet among enterprises in this sector continued to show a steady rise, indicating growing digital integration. This shows that more and more establishments are leveraging online platforms for business operations and transactions highlighting growing digital integration among these enterprises,” the report said. The percentage of firms reporting some form of registration increased, signalling a clear trend towards greater formalisation, it added.

Published on November 25, 2025