India Records Double-Digit Growth In Unincorporated Sector Employment

India's labor market has continued to show strong growth, with a notable increase in employment across both formal and informal sectors in the financial year 2024-25. Official data reveals that the total estimated employment in the country's Unincorporated Sector experienced a significant double-digit growth of 10.01 per cent during the period from October 2023 to September 2024, compared to the same period in the previous year.

According to the Ministry of Statistics' Annual Survey of Unincorporated Sector Enterprises (ASUSE), the "Other Services" sector emerged as a major contributor to this employment surge. It saw an addition of over 12 crore workers between October 2023 and September 2024, marking an increase of more than one crore workers compared to 2022-23. The sector registered the highest growth at 17.86 per cent, followed by manufacturing, which saw an increase of 10.03 per cent.

The unincorporated non-agricultural sector plays a crucial role in India's economy, contributing significantly to employment, Gross Domestic Product (GDP), and the overall socio-economic structure. It not only sustains the livelihoods of millions but also supports the formal sector by providing goods and services, further strengthening its position in the domestic value chain.

In parallel, India’s formal sector employment has also maintained its upward trajectory, with new enrollments across key social security schemes showing positive growth. The number of new subscribers to the Employees' Provident Fund (EPF), which is primarily for larger organizations and higher-paid employees, rose by 2.3 per cent to 6.1 million in the first half of FY 2024-25 (April-September), compared to the same period last year.

The Employees' State Insurance Corporation (ESIC), which covers smaller organizations, saw a faster growth rate of 5.2 per cent, adding 9.3 million new subscribers in the same period. Similarly, subscriptions to the National Pension System (NPS) grew by 6.8 per cent, reflecting a steady rise in the number of employees joining formal job streams.

These positive trends in both formal and informal employment underscore the ongoing strength and resilience of India's labour market, signalling a continued recovery and expansion across various sectors.

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