Valentina Stoevska Department of Statistics International Labour Office- Geneva 1 International Labour Organisation, Department of Statistics

 Limitations of the current MDG Indicator 3.2  Growth of the employment in informal sector (IS)/ informal employment (IE)  Statistical definitions of the employment in informal sector and informal employment  Some findings re employment in informal economy  References 2International Labour Organisation, Department of Statistics

- non-agricultural wage employment represents only a small portion of total employment, - contribution of women to the national economy underestimated and misrepresented - difficult to interpret, - does not reveal that there are different types of non-agricultural wage employment 3International Labour Organisation, Department of Statistics

- Employment by sector (agriculture, industry, services), - Wage employment in agriculture, - Employment by status in employment (employees, employers, contributing family members, etc.), - Employment in managerial occupations, - Employment in the informal economy, -... More comprehensive picture of the women situation in the labour market, and changes 4International Labour Organisation, Department of Statistics

 Growth of the informal economy  Employment creation, income generation and poverty eradication but workers lack legal and social protection.  Informalisation of employment is partly attributable to ‘globalisation’ process: competitive pressure on enterprises leads to mixed-mode labour arrangements (non-standards, atypical, irregular, precarious):  Exists everywhere (incl. industrialised countries), and in the formal sector ◦ Relevance and meaning varies by country 5International Labour Organisation, Department of Statistics

 Survival strategy: lack of other jobs, obstacles to employment in the formal sector, need to supplement family income  Independence,  Flexible work arrangements,  Profitable income-earning opportunity,  Non-compliance ◦ Regulations, tax payments, social security contributions  reduced production costs 6International Labour Organisation, Department of Statistics

 ‘Employment in the IS’ and ‘informal employment’ refer to different aspects of the «informalisation» of employment  Employment in IS: employment in informal enterprises. -defined in terms of characteristics of production units/enterprises (enterprise based)  Informal employment: employment in informal jobs. - defined in terms of characteristics of persons or their jobs (job based) Employment in the informal economy defined as the sum of jobs in the informal sector and of informal jobs outside the informal sector. 7International Labour Organisation, Department of Statistics

8 Production unitsInformal jobsFormal jobs Informal sector enterprises AB Other units of production CD Employment in the informal sector:A + B Informal employment:A + C Informal employment outside the informal sector:C Employment in the informal economy: A + B + C Employment in the informal sector:A + B Informal employment:A + C Informal employment outside the informal sector:C Employment in the informal economy: A + B + C International Labour Organisation, Department of Statistics

 Private unincorporated enterprises,  Not constituted as separate legal entities,  No complete accounts available,  At least some goods or services produced are meant for sale or barter,  Enterprise size below low threshold,:  Enterprise not registered under specific forms of national legislation at national level,  Engaged in non-agricultural activities. 9International Labour Organisation, Department of Statistics

Total number of informal jobs carried out  in formal sector enterprises or  in informal sector enterprises or  in households ◦ during a given reference period. Employees are considered to have informal jobs if not covered by social security system or not entitled to other employment benefits such as paid annual or sick leave. 10International Labour Organisation, Department of Statistics

Employees  In informal jobs in formal sector enterprises,  Paid domestic workers employed by households. Contributing family workers  Working in formal sector enterprises. Own-account workers  Engaged in goods production exclusively for final use by own household (if employed according to 13th ICLS employment definition). 11International Labour Organisation, Department of Statistics

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International Labour Organisation, Department of Statistics13

Persons in informal employment as % of non-agricultural employment Source : ILO, Department of Statistics 14International Labour Organisation, Department of Statistics

Source: ILO, Department of Statistics 15International Labour Organisation, Department of Statistics

Source: ILO, Department of Statistics 16International Labour Organisation, Department of Statistics

17 Informal employment in non-agricultural activities by sex for selected countries, %

International Labour Organisation, Department of Statistics18 Informal employment outside informal sector, in non-agricultural activities, by sex for selected countries, %

International Labour Organisation, Department of Statistics19 Employment in informal sector, non-agricultural activities, by sex for selected countries, %

20International Labour Organisation, Department of Statistics

 Resolution concerning statistics of employment in the informal sector (adopted by the Fifteenth International Conference of Labour Statisticians,1993) Resolution concerning statistics of employment in the informal sector  Guidelines concerning a statistical definition of informal employment (adopted by the Seventeenth International Conference of Labour Statisticians, 2003) guidelines/lang--en/index.htm  LABORSTA, an International Labour Office database on labour statistics operated by the ILO Department of Statistics Labour OfficeILO Department of Statistics 21 International Labour Organisation, Department of Statistics