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372 Economic Survey 2021-22

10.59 Formal-informal employment (ps+ss) across organized and unorganized sector is given
in table 8. Of the additional workers joined in 2019-20, close to 90 percent were in the informal
nature of employment and more than 98 percent were in unorganised sector. About 91 percent
of additional workers were in unorganised-informal sector. Table 8 gives estimates of total
employment in formal and informal across organized and unorganized sector.
Table 8: Formal-Informal Employment (ps+ss) across Organized and Unorganized
Sector (in Crores)

Type of Employment Organized Unorganized Total

2017-18
Formal 4.43 0.28 4.70

Informal 4.62 37.79 42.43
Total 9.05 38.07 47.13

2018-19
Formal 4.91 0.45 5.35
Informal 4.55 38.87 43.43

Total 9.46 39.32 48.78
2019-20

Formal 5.09 0.80 5.89
Informal 4.46 43.19 47.64

Total 9.55 43.99 53.53
Source: Estimated using PLFS 2017-18, 2018-19 and 2019-20 Surveys.
Note: As per National Commission for Enterprises in Unorganized Sector (NCEUS) classification, “The unorganised
sector consists of all unincorporated private enterprises owned by individuals or households engaged in the sale and
production of goods and services operated on a proprietary or partnership basis and with less than ten total workers.”
However, “informal workers consist of those working in the unorganised enterprises or households, excluding
regular workers with social security benefits, and the workers in the formal sector without any employment benefits
/social security provided by the employers.” (NCEUS, 2007a, p.3).

10.60 Industry wise employment (ps+ss) in India is given in Table 9. Of workers added in
2019-20 shows that more than 71 percent were in the agriculture sector. Among the new workers
in the agriculture sector, females account for about 65 percent. Trade, hotel and restaurant sector
accounted for a little over 22 percent of the new workers, in line with previous year’s trend where
the sector represented more than 28 percent of the new workers. The share of manufacturing
has declined from 5.65 percent of new workers added in 2018-19 to about 2.41 percent of new
workers added in 2019-20, and so has that of construction from 26.26 percent to 7.36 percent.