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1 child term
(Informal economy)Part of the market economy in that it produces (legal) goods and services for sale or other forms of remuneration, covers informal employment both in informal enterprises (small unregistered or unincorporated enterprises) and outside informal enterprises; not recognized or protected under existing legal and regulatory frameworks.
Source: UNEVOC/NCVER 2009, Global
This consists of units engaged in the production of goods and services with the primary objective of generating employment and income to the persons concerned in order to earn a living.
Source: TESDA 2010, Philippines
(Informal sector or Informal economy) This is defined by governments as the part of an economy that has no annual accounts, not taxed, not monitored by any form of government, not belonging to the chamber of commerce and not included in any Gross National Product GNP, unlike the formal economy. The GNP is defined as the market value of all products and services produced in one year by labor and property supplied by the residents of a country. In developing countries, some 70% of the potential working population are self-employed outside the formal economy and not on anyone's payroll and earn their living in the informal sector. They live and work in the informal sector not because it is their wish or choice, but because they have no chance to be hired by an employer from the formal sector except for a few hours or days, with no legal right to be hired again.
Source: Wahba 2013, Global
The following definition of informal employment follows the one recommended by the International Conference of Labour Statisticians (ICLS).
Thus, informal workers belong to any of the following categories:
1. unpaid family workers in registered or unregistered businesses with more than five employees;
2. employees in registered firms (or firms with more than five employees)without access to at least one of the three key benefits;
3. own-account workers with unregistered activities;
4. employers in unregistered businesses with less than five workers;
5. unpaid family workers in unregistered businesses with less than five employees;
6 employees in unregistered firms with less than five workers and without access to at least one of the three key benefits;
7. employees in unregistered firms with less than five workers with access to all three key benefits;
8. members of unregistered producers’ cooperatives with less than five workers;
9. workers not classifiable by status in other unregistered businesses with less than five workers.
The definition was established in the 15th International Conference of Labour Statisticians (ICLS) and expanded to cover informal jobs in the formal sector in the 17th ICLS.
Source: ILO 2014, Global